Secmark’s revenue rises, but tax charge keeps it in the red
Consolidated sales grew 15.36% sequentially, while a 542.27% tax rate pushed the company from Rs 0.01 cr of pre-tax profit to a Rs 0.04 cr net loss.
Filed 27 Oct 2026, 20:24 IST · after market close · Secmark Consultancy Ltd (SECMARK)
Key takeaways
- Consolidated revenue grew 15.36% sequentially, but expenses grew faster at 15.76%, narrowing operating margin by 0.29 percentage points.
- A 542.27% tax rate turned profit before tax of Rs 0.01 cr into a net loss of Rs 0.04 cr.
- Secmark’s 9.55% operating margin was 9.95 percentage points below the 19.5% median for 25 reported IT peers.
Price around the results
Revenue momentum did not widen operating profit
Secmark’s consolidated revenue increased 15.36% sequentially to Rs 11.94 cr, while operating profit rose 11.76% to Rs 1.14 cr. Expenses grew slightly faster than revenue, at 15.76%, which reduced operating margin by 0.29 percentage points to 9.55%.
Tax and depreciation erased the operating gain
Profit before tax improved from a loss of Rs 0.25 cr in Q1FY27 to Rs 0.01 cr, helped by a 31.58% sequential decline in interest expense. Depreciation increased 1.39% to Rs 1.46 cr, while tax rose from a Rs 0.06 cr credit to Rs 0.05 cr, producing a 542.27% tax rate and a Rs 0.04 cr net loss. Other income of Rs 0.46 cr represented 4,600% of pre-tax profit, so reported profit was too small to reflect operating earnings cleanly.
Margin remains near the bottom of its IT peer set
Among 25 Information Technology companies that had reported the same quarter, Secmark’s 9.55% operating margin was 9.95 percentage points below the 19.5% median. It ranked second from the bottom, and the sequential decline marks a weaker margin direction after the 9.84% recorded in Q1FY27.
Results were filed after market close
The consolidated results were filed at 20:24 IST on 27 October 2026, after the market closed. There is therefore no reported share-price reaction to assess yet.
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 | ₹12 cr | ₹10 cr | +15.36% |
| Other income | ₹0 cr | ₹0 cr | +24.32% |
| Expenses | ₹11 cr | ₹9 cr | +15.76% |
| Operating profit | ₹1 cr | ₹1 cr | +11.76% |
| Operating margin (%) | 9.55% | 9.84% | — |
| Interest | ₹0 cr | ₹0 cr | -31.58% |
| Depreciation | ₹1 cr | ₹1 cr | +1.39% |
| Profit before tax | ₹0 cr | ₹-0 cr | — |
| Tax | ₹0 cr | ₹-0 cr | — |
| Net profit | ₹-0 cr | ₹-0 cr | +78.95% |
| EPS (₹) | ₹-0.04 | ₹-0.18 | +77.78% |
Operating margin of 9.55% compares with a Information Technology sector median of 19.50% across 25 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 9.55% after expenses grew 15.76% sequentially.
- Whether the tax rate moves down from 542.27% as pre-tax profit improves from Rs 0.01 cr.
- Whether revenue growth remains above the 15.36% sequential increase reported in Q2FY27.