Revenue grew 19.84%, but higher costs cut operating margin sharply
Standalone net profit fell 43.33% year on year as expenses and interest rose faster than revenue, despite a sequential margin recovery.
Filed 05 Nov 2026, 15:37 IST · after market close · Schneider Electric Infrastructure Ltd (SCHNEIDER)
Key takeaways
- Standalone revenue grew 19.84% year on year, but expenses rose 26.96%, compressing operating margin by 5.17 percentage points to 7.72%.
- Quarter on quarter, operating margin recovered 2.49 percentage points as revenue growth of 19.61% outpaced expense growth of 16.47%.
- Net profit fell 43.33% year on year to Rs 29.65 cr, with interest expense up 36.78% and other income contributing 12.24% of pre-tax profit.
Price around the results
Revenue growth did not translate into profit growth
Schneider Electric Infrastructure's standalone revenue rose 19.84% year on year, but operating profit fell 28.25% because expenses increased 26.96%. The resulting 5.17-percentage-point margin contraction left operating margin at 7.72%. Profit before tax fell 42.09%, while net profit declined 43.33% to Rs 29.65 cr.
Sequential recovery, but sector margin gap remains
The quarter was better than Q1FY27 on momentum: revenue grew 19.61% sequentially while expenses grew 16.47%, lifting operating margin by 2.49 percentage points. This reversed the fall to 5.23% in Q1FY27, but margin remains below 12.89% in Q2FY26 and 16.77% in Q3FY26. Among 178 Industrials peers that have reported, the median operating margin is 11.5%, putting the company 3.78 percentage points below the sector median.
Higher financing costs and other income affect earnings quality
Interest expense rose 36.78% year on year, adding to the pressure below operating profit; depreciation also increased 30.64%. Other income accounted for 12.24% of pre-tax profit, so a portion of reported earnings came from outside operations. The tax rate rose 1.6 percentage points year on year to 26.83%, which did not flatter the year-on-year net profit comparison.
No immediate stock reaction after the filing
The standalone results were filed after market close, so there is no reported market reaction yet. After its last eight results, the stock rose three times and fell five times, with a median absolute move of 4.99%, making that the relevant historical reaction range.
Q2FY27 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹779 cr | ₹651 cr | +19.61% | +19.84% |
| Other income | ₹5 cr | ₹7 cr | -28.22% | +11.71% |
| Expenses | ₹719 cr | ₹617 cr | +16.47% | +26.96% |
| Operating profit | ₹60 cr | ₹34 cr | +76.59% | -28.25% |
| Operating margin (%) | 7.72% | 5.23% | — | — |
| Interest | ₹15 cr | ₹15 cr | +1.39% | +36.78% |
| Depreciation | ₹9 cr | ₹9 cr | +4.42% | +30.64% |
| Profit before tax | ₹41 cr | ₹17 cr | +138.49% | -42.09% |
| Tax | ₹11 cr | ₹5 cr | +138.90% | -38.41% |
| Net profit | ₹30 cr | ₹12 cr | +138.34% | -43.33% |
| EPS (₹) | ₹1.24 | ₹0.52 | +138.46% | -43.38% |
Operating margin of 7.72% compares with a Industrials sector median of 11.50% across 178 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above the Q2FY27 level of 7.72%.
- Whether expense growth remains below revenue growth after the sequential gap of 16.47% versus 19.61%.
- Whether interest expense moderates from the year-on-year increase of 36.78%.