RIR revenue accelerates, but faster cost growth cuts operating margin
Net profit gained from a lower tax rate and other income, making the operating performance less powerful than the headline profit growth.
Filed 26 Oct 2026, 18:40 IST · after market close · RIR Power Electronics Ltd (RIR)
Key takeaways
- Sequential revenue growth of +25.11% was outpaced by expense growth of +26.62%, narrowing standalone operating margin by 1.04 percentage points to 13.62%.
- Standalone net profit rose +41.72% sequentially, helped by a 4.72-percentage-point lower tax rate, while other income contributed 29.06% of pre-tax profit.
- RIR's standalone operating margin was 2.63 percentage points above the 10.99% median for 30 Industrials peers that had reported.
Price around the results
Revenue momentum did not carry through to margins
Sequential momentum was clear, with standalone revenue growing +25.11%, but expenses grew faster at +26.62%. That cost mismatch reduced operating margin by 1.04 percentage points to 13.62%, even as operating profit increased +16.33%.
Profit growth had below-operating support
The +41.72% sequential rise in standalone net profit was amplified below operating profit: the tax rate fell 4.72 percentage points and other income accounted for 29.06% of pre-tax profit. Interest expense also increased +19.23%, so the profit increase was not driven only by operations.
Margin remained above the Industrials peer median
RIR's 13.62% operating margin was 2.63 percentage points above the 10.99% median among 30 Industrials companies that had reported the same quarter. The sequential direction was nevertheless negative, with margin down from 14.66% in Q1FY27.
Results were filed after market close
RIR filed these standalone results after market close on 26 October 2026. The immediate stock response is therefore not part of this results read-through.
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 | ₹34 cr | ₹27 cr | +25.11% |
| Other income | ₹2 cr | ₹1 cr | +109.09% |
| Expenses | ₹29 cr | ₹23 cr | +26.62% |
| Operating profit | ₹5 cr | ₹4 cr | +16.33% |
| Operating margin (%) | 13.62% | 14.66% | — |
| Interest | ₹0 cr | ₹0 cr | +19.23% |
| Depreciation | ₹0 cr | ₹0 cr | +14.71% |
| Profit before tax | ₹6 cr | ₹4 cr | +33.49% |
| Tax | ₹1 cr | ₹1 cr | +7.92% |
| Net profit | ₹4 cr | ₹3 cr | +41.72% |
| EPS (₹) | ₹0.56 | ₹0.39 | +43.59% |
Operating margin of 13.62% compares with a Industrials sector median of 10.99% across 30 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -2.29% | -2.27% |
| Next session | -2.47% | — |
Volume on the results session was 1.59× its 20-day average.
What to watch
- Whether standalone operating margin recovers from 13.62% after the 1.04-percentage-point sequential decline.
- Whether expense growth remains above revenue growth, after +26.62% versus +25.11% in Q2FY27.
- Whether other income's 29.06% share of pre-tax profit reduces in the next quarter.