Sasken expands margin despite a 5.39% sequential revenue decline
Expenses fell 8.93%, but higher interest, depreciation and tax limited the earnings benefit.
Filed 28 Oct 2026, 21:07 IST · after market close · Sasken Technologies Ltd (SASKEN)
Key takeaways
- Consolidated operating margin rose 3.39 percentage points sequentially to 12.86% as expenses fell 8.93% against a 5.39% revenue decline.
- Net profit increased 8.80% sequentially even as the tax rate rose 7.35 percentage points to 27.81%, with other income contributing 26.21% of pre-tax profit.
- Sasken's 12.86% operating margin was 4.93 percentage points below the 17.79% median of 31 Information Technology peers that had reported.
Price around the results
Revenue fell, but lower costs lifted operating profit
In consolidated Q2FY27, revenue declined 5.39% sequentially, while expenses fell 8.93%. Because costs declined faster than revenue, operating profit rose 28.49% and operating margin expanded 3.39 percentage points to 12.86%.
Higher tax and finance costs diluted the profit improvement
Profit before tax increased 19.89% sequentially, but interest expense rose 61.11% and depreciation increased 18.55%. The tax rate also rose 7.35 percentage points to 27.81%, limiting net profit growth to 8.80%; other income accounted for 26.21% of pre-tax profit.
Margin improved sequentially but stayed below the IT peer median
The 12.86% operating margin was 4.93 percentage points below the 17.79% median among 31 Information Technology peers that had reported the quarter. Relative to Q1FY27, the margin recovery came despite lower revenue, reflecting the sharper reduction in expenses.
Results were filed after market close
Sasken filed the consolidated results on 28 Oct 2026 at 21:07 IST, after market close. There is no same-session market reaction to assess.
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 | ₹321 cr | ₹339 cr | -5.39% |
| Other income | ₹9 cr | ₹10 cr | -3.93% |
| Expenses | ₹280 cr | ₹307 cr | -8.93% |
| Operating profit | ₹41 cr | ₹32 cr | +28.49% |
| Operating margin (%) | 12.86% | 9.47% | — |
| Interest | ₹2 cr | ₹1 cr | +61.11% |
| Depreciation | ₹13 cr | ₹11 cr | +18.55% |
| Profit before tax | ₹35 cr | ₹30 cr | +19.89% |
| Tax | ₹10 cr | ₹6 cr | +62.98% |
| Net profit | ₹26 cr | ₹24 cr | +8.80% |
| EPS (₹) | ₹16.14 | ₹16.37 | -1.41% |
Operating margin of 12.86% compares with a Information Technology sector median of 17.79% across 31 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 12.86% after the 3.39-percentage-point sequential expansion.
- Whether expenses continue to fall faster than revenue after declines of 8.93% and 5.39%, respectively.
- Whether the tax rate moves from 27.81% and other income remains near 26.21% of pre-tax profit.