Revenue grew, but costs cut Sadbhav's margin by 5.02 percentage points
Consolidated revenue rose +11.09% QoQ while expenses grew +33.35%; lower interest and tax supported a +38.55% increase in net profit.
Filed 04 Nov 2026, 20:43 IST · after market close · Sadbhav Engineering Ltd (SADBHAV)
Key takeaways
- Consolidated revenue rose +11.09% QoQ, but expenses grew +33.35%, narrowing operating margin by 5.02 percentage points.
- Net profit increased +38.55% QoQ as interest fell -9.42% and the tax rate dropped 6.18 percentage points.
- Other income contributed 19.08% of pre-tax profit, making the quarter's profit quality an important consideration.
Price around the results
Revenue growth was outweighed by expense growth
Sadbhav Engineering's consolidated revenue grew +11.09% QoQ, but expenses increased +33.35%. Costs therefore grew faster than revenue, reducing operating margin by 5.02 percentage points from Q1FY27. This was the first sequential margin comparison available in the reported trend.
Lower interest and tax supported profit growth
Net profit rose +38.55% QoQ even though operating profit grew only +3.64%. Interest expense fell -9.42%, while the tax rate declined by 6.18 percentage points to support the increase in profit after tax. Other income accounted for 19.08% of pre-tax profit, so reported earnings were partly supported by non-operating income.
Margin remains far above the Industrials peer median
Sadbhav's operating margin was 57.65 percentage points above the 12.24% median for the 143 Industrials companies that had reported the same quarter. The comparison places the company at the top end of the reported peer set, although its own margin moved down sequentially from 74.91%.
Results were filed after market close
The consolidated results were filed after market close on 4 November 2026. There is no market reaction to assess yet, so the quarter's response cannot be compared with the stock's post-results history.
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 | ₹227 cr | ₹204 cr | +11.09% |
| Other income | ₹15 cr | ₹10 cr | +45.27% |
| Expenses | ₹68 cr | ₹51 cr | +33.35% |
| Operating profit | ₹158 cr | ₹153 cr | +3.64% |
| Operating margin (%) | 69.89% | 74.91% | — |
| Interest | ₹60 cr | ₹66 cr | -9.42% |
| Depreciation | ₹36 cr | ₹37 cr | -2.40% |
| Profit before tax | ₹77 cr | ₹60 cr | +28.80% |
| Tax | ₹13 cr | ₹14 cr | -5.12% |
| Net profit | ₹64 cr | ₹46 cr | +38.55% |
| EPS (₹) | ₹1.59 | ₹0.91 | +74.73% |
Operating margin of 69.89% compares with a Industrials sector median of 12.24% across 143 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 69.89% after the 5.02 percentage-point sequential decline.
- Whether expense growth moderates from +33.35% against revenue growth of +11.09%.
- Whether other income remains below or above its 19.08% share of pre-tax profit.