Rhetan TMT’s operating margin falls to -26.80% in Q2FY27
Revenue fell 10.59% QoQ while expenses declined only 2.33%; other income made up 149.50% of pre-tax profit.
Filed 03 Nov 2026, 16:43 IST · after market close · Rhetan TMT Ltd (RHETAN)
Key takeaways
- Standalone operating margin fell 10.52 percentage points QoQ to -26.80% as revenue declined 10.59% while expenses declined only 2.33%.
- Other income equalled 149.50% of pre-tax profit, making the Rs 2.92 cr net profit heavily dependent on non-operating income.
- Rhetan TMT’s -26.80% operating margin was 37.83 percentage points below the 11.03% median for 108 Industrials peers.
Price around the results
Revenue fell faster than the cost base
Standalone revenue declined 10.59% QoQ, while expenses fell only 2.33%, leaving the business with a wider operating loss of Rs 0.97 cr. Operating margin therefore narrowed by 10.52 percentage points to -26.80%, the second consecutive quarter of negative margin.
Reported profit was dominated by other income
Other income of Rs 4.47 cr represented 149.50% of pre-tax profit, so the Rs 2.92 cr net profit does not reflect operating earnings. Interest expense rose 6.06% QoQ, while the tax rate fell by 2.01 percentage points to 2.50%, partly cushioning the decline in pre-tax profit and net profit.
Margin ranked lowest among 108 reported Industrials peers
Rhetan TMT’s -26.80% operating margin was 37.83 percentage points below the 11.03% median for 108 Industrials companies that had reported the same quarter. Profit before tax declined 9.67% QoQ and net profit declined 7.59%, extending the sequential weakening in earnings.
Results were filed after market close
The standalone results were filed at 16:43 IST on 3 November 2026, after market close. The filing therefore does not yet provide a post-results stock reaction to compare with the company’s past results-day moves.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹4 cr | ₹4 cr | -10.59% |
| Other income | ₹4 cr | ₹4 cr | +0.45% |
| Expenses | ₹5 cr | ₹5 cr | -2.33% |
| Operating profit | ₹-1 cr | ₹-1 cr | -46.97% |
| Operating margin (%) | -26.80% | -16.28% | — |
| Interest | ₹0 cr | ₹0 cr | +6.06% |
| Depreciation | ₹0 cr | ₹0 cr | +0.00% |
| Profit before tax | ₹3 cr | ₹3 cr | -9.67% |
| Tax | ₹0 cr | ₹0 cr | -53.33% |
| Net profit | ₹3 cr | ₹3 cr | -7.59% |
| EPS (₹) | ₹0.04 | ₹0.08 | -50.00% |
Operating margin of -26.80% compares with a Industrials sector median of 11.03% across 108 peers that have reported Q2FY27.
What to watch
- Whether revenue moves up from Rs 3.63 cr without expenses growing faster than revenue.
- Whether operating margin improves from -26.80% after two consecutive quarters in negative territory.
- Whether other income remains near 149.50% of pre-tax profit and the tax rate near 2.50%.