Flat revenue and higher costs squeeze Saksoft's margin
A lower tax rate lifted net profit sequentially, but the operating margin stayed below the reported Information Technology peer median.
Filed 04 Nov 2026, 13:53 IST · Saksoft Ltd (SAKSOFT)
Key takeaways
- Consolidated revenue was flat sequentially at Rs 248.61 cr, while expenses rose 0.80%, narrowing operating margin by 0.66 percentage points to 17.60%.
- Net profit increased 9.66% sequentially to Rs 32.12 cr because the tax rate fell 7.10 percentage points to 24.10%, despite operating profit declining 3.61%.
- Saksoft's 17.60% operating margin was 1.40 percentage points below the 19.00% median for 58 Information Technology peers that had reported.
Price around the results
Revenue stalled as costs moved higher
Consolidated revenue was virtually unchanged from Q1FY27, while expenses grew 0.80%, so operating profit fell 3.61% to Rs 43.76 cr. That cost-revenue mismatch reduced operating margin by 0.66 percentage points to 17.60%. With only one preceding quarter in the trend, the result indicates sequential pressure but not a longer multi-quarter direction.
Tax benefit, not operating improvement, drove profit growth
Profit before tax declined 0.63% sequentially, but net profit rose 9.66% as the tax rate dropped to 24.10% from 31.20%. Other income rose 69.89% and represented 7.07% of pre-tax profit, so reported profit also included a meaningful non-operating contribution. Interest expense increased 3.17%, adding slightly to the pressure below operating profit.
Margin trails the reported Information Technology peer median
Saksoft's 17.60% operating margin was 1.40 percentage points below the 19.00% median among 58 Information Technology peers that had reported the same quarter. The gap puts the quarter's margin below the sector comparison even though revenue was stable sequentially.
Shares fell 4.22% on the result date
The stock declined 4.22% on the result date and underperformed its reference market by 4.85 percentage points. Trading volume was 2.55 times the reference level, indicating a sizeable market response to the release.
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 | ₹249 cr | ₹249 cr | +0.00% |
| Other income | ₹3 cr | ₹2 cr | +69.89% |
| Expenses | ₹205 cr | ₹203 cr | +0.80% |
| Operating profit | ₹44 cr | ₹45 cr | -3.61% |
| Operating margin (%) | 17.60% | 18.26% | — |
| Interest | ₹1 cr | ₹1 cr | +3.17% |
| Depreciation | ₹3 cr | ₹3 cr | -5.42% |
| Profit before tax | ₹42 cr | ₹43 cr | -0.63% |
| Tax | ₹10 cr | ₹13 cr | -23.19% |
| Net profit | ₹32 cr | ₹29 cr | +9.66% |
| EPS (₹) | ₹2.49 | ₹2.28 | +9.21% |
Operating margin of 17.60% compares with a Information Technology sector median of 19.00% across 58 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -4.22% | -4.85% |
Volume on the results session was 2.55× its 20-day average.
What to watch
- Whether operating margin recovers from 17.60% after expenses grew 0.80% while revenue was flat.
- Whether the tax rate remains near 24.10% after falling 7.10 percentage points sequentially.
- Whether other income remains below or above its 7.07% share of pre-tax profit.