RPPL profit drops 30.72% as costs rise on flat revenue
The consolidated operating margin fell 1.32 percentage points, while lower other income and a higher tax rate further reduced quarterly profit.
Filed 03 Nov 2026, 13:46 IST · RPPL (RPPL)
Key takeaways
- Consolidated net profit fell 30.72% sequentially to Rs 5.03 cr as expenses grew 1.53% while revenue was flat.
- Operating margin narrowed 1.32 percentage points to 12.69% because costs grew faster than revenue.
- Other income contributed 8.22% of pre-tax profit, while the tax rate rose 0.75 percentage points to 23.49%.
Flat revenue could not absorb higher expenses
Consolidated revenue was effectively unchanged sequentially, declining 0.01%, but expenses rose 1.53%. That mismatch reduced operating profit 9.50% and pushed net profit down 30.72% to Rs 5.03 cr. Interest and depreciation both eased, so the pressure came primarily from operating costs.
Margin compression was amplified below the operating line
Operating margin declined 1.32 percentage points to 12.69% as expenses grew faster than revenue. Other income fell 74.29% sequentially and accounted for 8.22% of pre-tax profit in the quarter, making the prior quarter's earnings less comparable. The tax rate also increased 0.75 percentage points to 23.49%, adding to the decline in net profit.
The quarter reversed the Q1FY27 profit level
Compared with Q1FY27, pre-tax profit fell 30.03% and EPS declined 30.61% to Rs 0.68. Operating margin moved down from 14.01% to 12.69%, while revenue stayed broadly flat, marking weaker sequential operating momentum. The results were filed during market hours, and no post-results market reaction is covered here.
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 | ₹103 cr | ₹103 cr | -0.01% |
| Other income | ₹1 cr | ₹2 cr | -74.29% |
| Expenses | ₹90 cr | ₹88 cr | +1.53% |
| Operating profit | ₹13 cr | ₹14 cr | -9.50% |
| Operating margin (%) | 12.69% | 14.01% | — |
| Interest | ₹2 cr | ₹2 cr | -2.87% |
| Depreciation | ₹5 cr | ₹5 cr | -0.85% |
| Profit before tax | ₹7 cr | ₹9 cr | -30.03% |
| Tax | ₹2 cr | ₹2 cr | -28.04% |
| Net profit | ₹5 cr | ₹7 cr | -30.72% |
| EPS (₹) | ₹0.68 | ₹0.98 | -30.61% |
What to watch
- Whether operating margin moves back above 12.69% after the sequential decline of 1.32 percentage points.
- Whether expenses continue to grow faster than revenue after rising 1.53% against revenue growth of -0.01%.
- Whether other income remains a material contributor after accounting for 8.22% of pre-tax profit.