Rossell Techsys profit rises 35.29% QoQ despite margin squeeze
Revenue growth accelerated, but faster expense growth cut operating margin by 0.58 percentage points; lower taxes and other income supported net profit.
Filed 06 Nov 2026, 13:26 IST · Rossell Techsys Ltd (ROSSTECH)
Key takeaways
- Consolidated revenue grew 20.22% QoQ, but expenses grew faster at 21.03%, narrowing operating margin by 0.58 percentage points.
- Net profit rose 35.29% QoQ as the tax rate fell 1.72 percentage points, although other income contributed 28.04% of pre-tax profit.
- Operating margin at 13.78% was 2.48 percentage points above the 11.30% median for 186 reported Industrials peers.
Price around the results
Revenue growth lifted operating profit
In consolidated results, revenue grew 20.22% QoQ and operating profit rose 15.33%, showing that higher activity translated into profit growth despite cost pressure. Pre-tax profit increased 32.27% and net profit rose 35.29%, helped by a lower tax rate and higher other income.
Costs outpaced revenue and interest also rose
Expenses grew 21.03% QoQ against 20.22% revenue growth, reducing operating margin by 0.58 percentage points to 13.78%. Interest expense increased 16.97%, while other income rose 196.72% and accounted for 28.04% of pre-tax profit, making reported profit less reliant on operations alone.
Margin remains above the Industrials peer median
Rossell Techsys's operating margin was 2.48 percentage points above the 11.30% median among 186 Industrials companies that had reported the same quarter. The available quarter-on-quarter trend shows a decline from 14.36% in Q1FY27 to 13.78% in Q2FY27, so the immediate direction was weaker even with the peer outperformance.
New semiconductor customer and lower inventory carrying
Management said the company onboarded a leading global semiconductor equipment manufacturer during Q2 FY27. The presentation also said inventory carrying levels improved to 6.67 months in Q2 FY27 from 7.98 months in Q2 FY26, pointing to a reduction in inventory intensity.
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 | ₹186 cr | ₹154 cr | +20.22% |
| Other income | ₹4 cr | ₹1 cr | +196.72% |
| Expenses | ₹160 cr | ₹132 cr | +21.03% |
| Operating profit | ₹26 cr | ₹22 cr | +15.33% |
| Operating margin (%) | 13.78% | 14.36% | — |
| Interest | ₹11 cr | ₹10 cr | +16.97% |
| Depreciation | ₹5 cr | ₹4 cr | +25.91% |
| Profit before tax | ₹13 cr | ₹10 cr | +32.27% |
| Tax | ₹3 cr | ₹3 cr | +24.05% |
| Net profit | ₹10 cr | ₹7 cr | +35.29% |
| EPS (₹) | ₹2.56 | ₹1.89 | +35.45% |
Operating margin of 13.78% compares with a Industrials sector median of 11.30% across 186 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Inventory carrying levels improved from 7.98 months in Q2 FY26 to 6.67 months in Q2 FY27.
New initiatives
- The company onboarded a leading global semiconductor equipment manufacturer during Q2 FY27.
What to watch
- Whether operating margin holds above 13.78% after the 0.58-percentage-point QoQ decline.
- Whether expense growth stays below the 20.22% QoQ revenue growth rate.
- Whether inventory carrying levels remain below 6.67 months.