Revenue jumped 43.61%, but Sagardeep’s margin stayed at 2.69%
Expenses rose 43.30%, while a 7.40-point tax-rate increase limited the benefit from stronger operating profit.
Filed 03 Nov 2026, 19:17 IST · after market close · Sagardeep Alloys Ltd (SAGARDEEP)
Key takeaways
- Consolidated revenue grew +43.61% sequentially to Rs 81.97 cr, while expenses rose +43.30%.
- Operating margin improved by 0.20 percentage points sequentially to 2.69%.
- Net profit rose +63.51% sequentially to Rs 1.21 cr even as the tax rate increased 7.40 percentage points to 29.52%.
Price around the results
Revenue growth outpaced costs marginally in Q2FY27
Sagardeep’s consolidated revenue increased +43.61% sequentially, while expenses grew +43.30%. The near-matching cost growth meant operating margin improved by 0.20 percentage points, and operating profit grew +55.63%. Net profit rose +63.51% to Rs 1.21 cr.
Higher tax rate diluted operating improvement
The tax rate rose 7.40 percentage points to 29.52%, limiting the conversion of operating profit into net profit. Lower interest expense, down -5.56%, supported pre-tax profit, although depreciation increased +21.43%. Other income contributed only 1.16% of pre-tax profit, so it was not a material driver of earnings.
Margin remains well below the Industrials peer median
Sagardeep’s 2.69% operating margin was 8.34 percentage points below the 11.03% median for the 108 Industrials peers that had reported the quarter. The sequential improvement is modest against that gap, with the company ranking fourth from the bottom on this measure.
Results filed after market close
The consolidated results were filed after market close on 03 Nov 2026. The stock’s market response is therefore not covered in this update.
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 | ₹82 cr | ₹57 cr | +43.61% |
| Other income | ₹0 cr | ₹0 cr | -33.33% |
| Expenses | ₹80 cr | ₹56 cr | +43.30% |
| Operating profit | ₹2 cr | ₹1 cr | +55.63% |
| Operating margin (%) | 2.69% | 2.49% | — |
| Interest | ₹0 cr | ₹0 cr | -5.56% |
| Depreciation | ₹0 cr | ₹0 cr | +21.43% |
| Profit before tax | ₹2 cr | ₹1 cr | +79.17% |
| Tax | ₹1 cr | ₹0 cr | +142.86% |
| Net profit | ₹1 cr | ₹1 cr | +63.51% |
| EPS (₹) | ₹0.70 | ₹0.45 | +55.56% |
Operating margin of 2.69% compares with a Industrials sector median of 11.03% across 108 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 2.69% after its 0.20-point sequential improvement.
- The next tax rate against 29.52% and interest expense against Rs 0.34 cr.
- Whether expenses continue to grow no faster than revenue, which rose +43.61% versus expense growth of +43.30%.