Revenue jumped 27.41%, but operating margin fell to 5.24%
Expenses grew 29.82%, outpacing revenue, while the margin was 6.27 percentage points below the Industrials median.
Filed 12 Nov 2026, 13:14 IST · Rubfila International Ltd (RUBFILA)
Key takeaways
- Consolidated revenue rose 27.41% sequentially, but operating profit fell 4.50% as expenses grew faster.
- Operating margin narrowed 1.75 percentage points to 5.24%, leaving Rubfila 6.27 percentage points below the Industrials median.
- Other income contributed 21.06% of pre-tax profit, while net profit declined 3.97% sequentially.
Price around the results
Higher revenue did not translate into operating profit
Rubfila’s consolidated revenue increased 27.41% sequentially, but operating profit declined 4.50% and net profit fell 3.97%. The mismatch came from expenses, which rose 29.82% and grew faster than revenue. EPS consequently declined 3.74% to Rs 1.03.
Cost growth squeezed the operating margin
The faster rise in expenses reduced operating margin by 1.75 percentage points to 5.24% from 6.99%. Interest was unchanged, while the tax rate increased by 0.33 percentage points, so neither provided a sequential lift to profit. Other income accounted for 21.06% of pre-tax profit, making reported earnings partly dependent on income outside operations.
Margin trails the Industrials peer median
Among 230 Industrials companies that had reported the quarter, the sector median operating margin was 11.51%, putting Rubfila 6.27 percentage points below the median. The company was 34th from the bottom on this measure. Its margin also moved down sequentially from 6.99% to 5.24%.
The initial stock reaction was muted
The stock was up 0.02% at the reaction anchor, with a 0.48% opening gap and a 0.55 times volume ratio. Its relative performance was -0.16%, indicating little immediate separation from the broader market.
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 | ₹170 cr | ₹133 cr | +27.41% |
| Other income | ₹2 cr | ₹1 cr | +11.19% |
| Expenses | ₹161 cr | ₹124 cr | +29.82% |
| Operating profit | ₹9 cr | ₹9 cr | -4.50% |
| Operating margin (%) | 5.24% | 6.99% | — |
| Interest | ₹0 cr | ₹0 cr | +0.00% |
| Depreciation | ₹3 cr | ₹3 cr | +1.04% |
| Profit before tax | ₹8 cr | ₹8 cr | -3.70% |
| Tax | ₹2 cr | ₹2 cr | -2.46% |
| Net profit | ₹6 cr | ₹6 cr | -3.97% |
| EPS (₹) | ₹1.03 | ₹1.07 | -3.74% |
Operating margin of 5.24% compares with a Industrials sector median of 11.51% across 230 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +0.02% | -0.16% |
Volume on the results session was 0.55× its 20-day average.
What to watch
- Whether operating margin recovers from 5.24% after the 1.75 percentage-point sequential decline.
- Whether expense growth falls below the 29.82% sequential rate.
- Whether other income remains a material contributor after accounting for 21.06% of pre-tax profit.