RELINFRA reaches operating break-even, but profit falls 26.32% sequentially
Revenue grew faster than expenses, but higher interest and sharply lower other income weighed on the quarter.
Filed 13 Nov 2026, 20:46 IST · after market close · RELINFRA (RELINFRA)
Key takeaways
- Consolidated operating margin recovered by 2.42 percentage points sequentially to 0.00% as revenue grew faster than expenses.
- Reported net profit fell 26.32% sequentially to Rs 565.73 cr even as the operating loss narrowed to near break-even.
- Interest expense rose 6.63% to Rs 440.63 cr, while other income fell 65.47% to Rs 78.38 cr.
Revenue growth brought operations to break-even
RELINFRA reported consolidated revenue growth of 9.60% sequentially, while expenses grew 7.01%. That lifted operating profit from a loss of Rs 153.44 cr in Q1FY27 to Rs 0.11 cr and improved operating margin by 2.42 percentage points to 0.00%. The improvement reflects better operating leverage, although the margin remains effectively flat.
Interest rose as other income declined
Interest expense increased 6.63% sequentially to Rs 440.63 cr, offsetting the benefit from the operating improvement. Other income fell 65.47% to Rs 78.38 cr and represented -11.20% of pre-tax profit because reported pre-tax profit remained negative. The reported net profit of Rs 565.73 cr was higher than the reported pre-tax loss of Rs 699.78 cr, making net profit a poor read-through of operating performance this quarter.
Profit direction remains weaker despite margin recovery
Net profit declined 26.32% sequentially, while EPS fell 37.14% to Rs 5.72. Pre-tax loss widened 2.68% sequentially, and the tax rate increased by 0.85 percentage points to 1.19%. Results were filed after market close, so there is no immediate trading reaction to assess.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹6,954 cr | ₹6,344 cr | +9.60% |
| Other income | ₹78 cr | ₹227 cr | -65.47% |
| Expenses | ₹6,953 cr | ₹6,498 cr | +7.01% |
| Operating profit | ₹0 cr | ₹-153 cr | — |
| Operating margin (%) | 0.00% | -2.42% | — |
| Interest | ₹441 cr | ₹413 cr | +6.63% |
| Depreciation | ₹338 cr | ₹342 cr | -1.24% |
| Profit before tax | ₹-700 cr | ₹-682 cr | -2.68% |
| Tax | ₹-8 cr | ₹-2 cr | -255.13% |
| Net profit | ₹566 cr | ₹768 cr | -26.32% |
| EPS (₹) | ₹5.72 | ₹9.10 | -37.14% |
What to watch
- Whether operating margin remains above 0.00% after the 2.42-percentage-point sequential recovery.
- Whether interest expense falls from Rs 440.63 cr.
- Whether net profit continues to exceed the reported pre-tax result of negative Rs 699.78 cr.