RPSG Ventures' margin falls 7.64 points as costs outpace revenue
Operating profit dropped 42.97% QoQ, while a higher tax rate and other income accounting for 76.22% of pre-tax profit shaped the quarter.
Filed 05 Nov 2026, 12:39 IST · RPSG Ventures Ltd (RPSGVENT)
Key takeaways
- Consolidated operating margin fell 7.64 percentage points QoQ to 12.93% as revenue declined 9.31% while expenses fell only 0.59%.
- Net profit fell 54.74% QoQ to Rs 114.54 cr, with the tax rate rising 19.27 percentage points to 37.61%.
- Other income contributed 76.22% of pre-tax profit, making reported earnings less dependent on operating performance.
Price around the results
Revenue decline sharply reduced operating profit
Consolidated revenue fell 9.31% QoQ to Rs 3,243.49 cr, but operating expenses declined only 0.59% to Rs 2,823.96 cr. That mismatch reduced operating profit by 42.97% to Rs 419.53 cr and pulled the operating margin down to 12.93% from 20.57%.
Tax and other income weakened profit quality
Interest expense was broadly stable, rising 0.73%, while depreciation increased 2.75%, so the main pressure came from weaker operating profit. The tax rate rose 19.27 percentage points to 37.61%, further reducing net profit. Other income contributed 76.22% of pre-tax profit, limiting how much of the Rs 114.54 cr net profit reflected operations.
Margin trails the Services peer median
RPSG Ventures' 12.93% operating margin was 8.57 percentage points below the 21.5% median for 53 Services peers that had reported the same quarter. This was also a sharp sequential reversal, with margin falling from 20.57% in Q1FY27.
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 | ₹3,243 cr | ₹3,576 cr | -9.31% |
| Other income | ₹140 cr | ₹-55 cr | — |
| Expenses | ₹2,824 cr | ₹2,841 cr | -0.59% |
| Operating profit | ₹420 cr | ₹736 cr | -42.97% |
| Operating margin (%) | 12.93% | 20.57% | — |
| Interest | ₹244 cr | ₹242 cr | +0.73% |
| Depreciation | ₹132 cr | ₹128 cr | +2.75% |
| Profit before tax | ₹184 cr | ₹310 cr | -40.77% |
| Tax | ₹69 cr | ₹57 cr | +21.46% |
| Net profit | ₹115 cr | ₹253 cr | -54.74% |
| EPS (₹) | ₹26.74 | ₹27.53 | -2.87% |
Operating margin of 12.93% compares with a Services sector median of 21.50% across 53 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +2.88% | +0.86% |
Volume on the results session was 0.58× its 20-day average.
What to watch
- Whether operating margin recovers from 12.93% after the 7.64-percentage-point sequential decline.
- Whether the tax rate moves down from 37.61% after rising 19.27 percentage points QoQ.
- Whether other income remains a major contributor after accounting for 76.22% of pre-tax profit.