Revathi's Q2 profit rose 77.45% QoQ, but other income did much of the work
Revenue grew 27.85% while expenses grew 27.94%, leaving operating margin down 0.06 percentage points; other income was 67.07% of pre-tax profit.
Filed 04 Nov 2026, 19:00 IST · after market close · Revathi Equipment India Ltd (RVTH)
Key takeaways
- Consolidated net profit rose 77.45% QoQ to Rs 3.62 cr, helped by lower interest but also by higher other income.
- Revenue increased 27.85% QoQ, but expenses grew 27.94%, narrowing operating margin by 0.06 percentage points to 12.66%.
- Other income contributed 67.07% of pre-tax profit, while the tax rate rose 6.20 percentage points.
Price around the results
Revenue growth lifted operating profit, but not margin
Consolidated revenue rose 27.85% QoQ and operating profit grew 27.23%, indicating that most of the topline increase carried through to operations. Expenses grew slightly faster than revenue at 27.94%, so operating margin narrowed by 0.06 percentage points to 12.66%. Lower interest expense, down 3.40% QoQ, provided some support below the operating line.
Other income remained central to reported profit
Other income rose 66.34% QoQ and accounted for 67.07% of pre-tax profit, making reported earnings less dependent on operating profit this quarter. Pre-tax profit increased 92.69% QoQ, while the tax rate rose 6.20 percentage points to 27.74%, which limited the conversion into net profit. Net profit nevertheless grew 77.45% QoQ.
Operating margin was slightly above the Industrials peer median
Revathi's 12.66% operating margin was 0.42 percentage points above the 12.24% median among 143 Industrials companies that had reported the same quarter. The results were filed after market close, so there is no post-result market reaction to assess yet.
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 | ₹38 cr | ₹30 cr | +27.85% |
| Other income | ₹3 cr | ₹2 cr | +66.34% |
| Expenses | ₹34 cr | ₹26 cr | +27.94% |
| Operating profit | ₹5 cr | ₹4 cr | +27.23% |
| Operating margin (%) | 12.66% | 12.72% | — |
| Interest | ₹2 cr | ₹2 cr | -3.40% |
| Depreciation | ₹1 cr | ₹1 cr | +5.62% |
| Profit before tax | ₹5 cr | ₹3 cr | +92.69% |
| Tax | ₹1 cr | ₹1 cr | +148.21% |
| Net profit | ₹4 cr | ₹2 cr | +77.45% |
| EPS (₹) | ₹11.79 | ₹6.64 | +77.56% |
Operating margin of 12.66% compares with a Industrials sector median of 12.24% across 143 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 12.66% next quarter.
- Whether expense growth remains below the 27.85% revenue growth rate.
- Whether other income's 67.07% share of pre-tax profit declines.