SCI profit rises 205.43% YoY, but margin drops 8.41 points QoQ
Revenue growth outpaced costs year on year, but sequential margin pressure followed a faster rise in expenses and interest.
Filed 04 Nov 2026, 19:19 IST · after market close · Shipping Corporation of India Ltd (SCI)
Key takeaways
- Consolidated net profit rose 205.43% year on year to Rs 577.76 cr as revenue growth of 71.09% outpaced expense growth of 48.93%.
- Operating margin narrowed 8.41 percentage points sequentially to 39.38% because expenses grew 44.03%, faster than revenue at 24.05%.
- The 1.59% tax rate boosted profit, while other income was only 2.16% of pre-tax profit, leaving operating performance as the main profit driver.
Price around the results
Revenue growth drove a sharp year-on-year profit increase
SCI's consolidated revenue grew 71.09% year on year, while expenses rose 48.93%, lifting operating profit 121.95%. Operating margin consequently expanded 9.02 percentage points from Q2FY26. Net profit rose 205.43% to Rs 577.76 cr, with the lower tax rate also contributing to the increase.
Sequential margin reversal followed faster cost growth
Revenue increased 24.05% from Q1FY27, but expenses grew 44.03%, narrowing operating margin by 8.41 percentage points. Interest expense rose 28.51%, helping pull pre-tax profit down 6.56% and net profit down 6.71%. The margin fell from 47.79% in Q1FY27 after rising from 30.36% in Q2FY26 to 42.08% in Q3FY26 and 40.44% in Q4FY26.
Operating profit remained well above the Services peer median
The 1.59% tax rate was 10.02 percentage points below the year-ago level, so the net-profit increase was partly flattered by a lower tax charge. Other income contributed only 2.16% of pre-tax profit, limiting the quality concern from non-operating income. SCI's 39.38% operating margin was 17.65 percentage points above the 21.73% median for the 45 Services peers that had reported.
Results were filed after market close
The consolidated results were filed after market close, so there is no post-results stock move to assess yet. Across the last eight results reactions, the stock rose four times and fell four times, with a median absolute move of 5.05%.
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 | YoY |
|---|---|---|---|---|
| Revenue | ₹2,291 cr | ₹1,847 cr | +24.05% | +71.09% |
| Other income | ₹13 cr | ₹65 cr | -80.55% | -88.53% |
| Expenses | ₹1,389 cr | ₹964 cr | +44.03% | +48.93% |
| Operating profit | ₹902 cr | ₹882 cr | +2.23% | +121.95% |
| Operating margin (%) | 39.38% | 47.79% | — | — |
| Interest | ₹48 cr | ₹37 cr | +28.51% | +1.41% |
| Depreciation | ₹280 cr | ₹282 cr | -0.82% | +9.37% |
| Profit before tax | ₹587 cr | ₹628 cr | -6.56% | +174.33% |
| Tax | ₹9 cr | ₹9 cr | +4.12% | -62.41% |
| Net profit | ₹578 cr | ₹619 cr | -6.71% | +205.43% |
| EPS (₹) | ₹12.40 | ₹13.30 | -6.77% | +205.42% |
Operating margin of 39.38% compares with a Services sector median of 21.73% across 45 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 39.38% after the 8.41-percentage-point sequential decline.
- Whether expense growth falls below the Q2FY27 pace of 44.03% relative to revenue growth of 24.05%.
- Whether the tax rate remains close to 1.59% and other income stays a small share of pre-tax profit versus 2.16%.