RattanIndia Power margin slips as revenue falls faster than expenses
Net profit fell 16.31% sequentially despite zero tax, while other income was 221.21% of pre-tax profit.
Filed 30 Oct 2026, 13:51 IST · RattanIndia Power Ltd (RTNPOWER)
Key takeaways
- Consolidated operating margin narrowed by 1.69 percentage points sequentially to 13.96% as expenses declined 10.22% against a 11.98% revenue decline.
- Net profit fell 16.31% sequentially to Rs 38.37 cr despite a 0.0% tax rate, while other income equalled 221.21% of pre-tax profit.
- RattanIndia Power's 13.96% operating margin was 29.46 percentage points below the 43.42% Utilities median across 11 reported peers.
Price around the results
Revenue decline cuts operating profit
RattanIndia Power reported consolidated revenue of Rs 702.85 cr in Q2FY27, down 11.98% sequentially, while operating profit fell 21.49% to Rs 98.11 cr. The sharper operating-profit decline reflects weaker operating leverage as expenses fell only 10.22%, less than the revenue decline. Profit before tax fell 16.31% to Rs 38.37 cr.
Lower interest did not offset the margin squeeze
Operating margin narrowed from 15.65% in Q1FY27 to 13.96%, as costs declined more slowly than revenue. Interest expense fell 3.55%, but depreciation rose 1.10%, limiting the benefit from lower finance costs. Profit quality was mixed: other income of Rs 84.88 cr represented 221.21% of pre-tax profit, while the tax rate was 0.0%.
Margin remains below the Utilities peer median
The sequential direction was negative, with operating margin declining by 1.69 percentage points from the previous quarter. At 13.96%, the company's margin was 29.46 percentage points below the 43.42% median for 11 Utilities peers that had reported. The available quarterly history shows a one-quarter margin decline rather than a longer confirmed streak.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹703 cr | ₹799 cr | -11.98% |
| Other income | ₹85 cr | ₹68 cr | +25.04% |
| Expenses | ₹605 cr | ₹674 cr | -10.22% |
| Operating profit | ₹98 cr | ₹125 cr | -21.49% |
| Operating margin (%) | 13.96% | 15.65% | — |
| Interest | ₹83 cr | ₹86 cr | -3.55% |
| Depreciation | ₹62 cr | ₹61 cr | +1.10% |
| Profit before tax | ₹38 cr | ₹46 cr | -16.31% |
| Tax | ₹0 cr | ₹0 cr | — |
| Net profit | ₹38 cr | ₹46 cr | -16.31% |
| EPS (₹) | ₹0.07 | ₹0.09 | -22.22% |
Operating margin of 13.96% compares with a Utilities sector median of 43.42% across 11 peers that have reported Q2FY27.
What to watch
- Whether operating margin recovers from 13.96% after the 1.69 percentage-point sequential decline.
- Whether expenses continue to fall faster than revenue, after declining 10.22% versus revenue's 11.98% decline.
- Whether profit remains reliant on other income, which equalled 221.21% of pre-tax profit in Q2FY27.