REPL swings to loss as expenses outpace revenue growth
Operating margin fell 43.65 percentage points sequentially, leaving REPL near the bottom of 178 reported Industrials peers.
Filed 05 Nov 2026, 15:37 IST · after market close · Rudrabhishek Enterprises Ltd (REPL)
Key takeaways
- Revenue rose 35.28% sequentially, but expenses grew 103.61%, pushing operating margin down 43.65 percentage points to -30.21%.
- REPL swung to a consolidated net loss of Rs 0.29 cr from a Rs 0.53 cr profit in Q1FY27, despite other income of Rs 5.8 cr.
- The stock fell 4.96% after the results and was down 7.36% relative to its benchmark, with trading volume at 0.18 times the reference level.
Price around the results
Revenue growth did not cover the cost increase
Consolidated revenue increased 35.28% sequentially, but expenses rose 103.61%, causing operating profit to swing from Rs 1.33 cr to a loss of Rs 4.05 cr. Operating margin therefore fell from 13.44% to -30.21%, a decline of 43.65 percentage points. Interest expense also increased 76.83% to Rs 1.45 cr, adding to the pressure below operating profit.
Other income did not prevent a net loss
Other income rose 1557.14% sequentially to Rs 5.8 cr, but it was not enough to offset the operating loss, interest and depreciation. Profit before tax moved from Rs 0.52 cr to a loss of Rs 0.11 cr, followed by a tax charge of Rs 0.18 cr and a net loss of Rs 0.29 cr. Other income was equivalent to -5272.73% of pre-tax profit because pre-tax profit was slightly negative, making that ratio unusually distorted.
Margin was far below the Industrials peer median
REPL's operating margin of -30.21% was 41.71 percentage points below the 11.5% median for the 178 Industrials companies that had reported the same quarter. The company ranked second from the bottom on this measure among those reporters. The sequential deterioration from a 13.44% margin is the key direction in the available quarterly comparison.
Shares fell after the filing
The stock declined 4.96% on the reaction date and underperformed its benchmark by 7.36%. The move came with volume at 0.18 times the reference level, so the price decline was not accompanied by elevated trading activity.
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 | ₹13 cr | ₹10 cr | +35.28% |
| Other income | ₹6 cr | ₹0 cr | +1557.14% |
| Expenses | ₹17 cr | ₹9 cr | +103.61% |
| Operating profit | ₹-4 cr | ₹1 cr | — |
| Operating margin (%) | -30.21% | 13.44% | — |
| Interest | ₹1 cr | ₹1 cr | +76.83% |
| Depreciation | ₹0 cr | ₹0 cr | +14.29% |
| Profit before tax | ₹-0 cr | ₹1 cr | — |
| Tax | ₹0 cr | ₹-0 cr | — |
| Net profit | ₹-0 cr | ₹1 cr | — |
| EPS (₹) | ₹-0.16 | ₹0.30 | — |
Operating margin of -30.21% compares with a Industrials sector median of 11.50% across 178 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -4.96% | -7.36% |
Volume on the results session was 0.18× its 20-day average.
What to watch
- Whether operating margin recovers from -30.21% after the 43.65-percentage-point sequential decline.
- Whether expense growth moderates from 103.61% sequentially against revenue growth of 35.28%.
- Whether interest expense moves down from Rs 1.45 cr after rising 76.83% sequentially.