SEPC's margin jumps, but tax charge drives a Rs 58.54 cr loss
Expenses fell faster than revenue QoQ, but the tax rate rose 75.11 percentage points and erased the operating improvement.
Filed 11 Nov 2026, 20:03 IST · after market close · SEPC Ltd (SEPC)
Key takeaways
- SEPC's consolidated operating margin expanded 13.57 percentage points QoQ to 19.87% as expenses fell 27.92% against a 15.72% revenue decline.
- A tax charge equal to 259.03% of pre-tax profit turned operating profit into a Rs 58.54 cr net loss and pushed EPS to -Rs 0.30.
- SEPC's 19.87% operating margin was 8.33 percentage points above the Industrials median across 208 reported peers.
Price around the results
Lower revenue, sharper cost reduction lift margin
Consolidated revenue declined 15.72% QoQ, but expenses fell faster, down 27.92%, lifting operating margin by 13.57 percentage points to 19.87%. Operating profit therefore rose 165.91% to Rs 45.87 cr despite the lower revenue base.
Tax charge overwhelms pre-tax improvement
Pre-tax profit rose 179.50% QoQ to Rs 36.81 cr, helped by a 21.27% decline in interest expense. However, the tax charge rose 293.68% to Rs 95.35 cr, producing a tax rate of 259.03% and turning the quarter into a Rs 58.54 cr net loss. Other income contributed only 3.40% of pre-tax profit, so it was not the main source of the pre-tax improvement.
Margin sits above the Industrials peer median
SEPC's 19.87% operating margin was 8.33 percentage points above the 11.54% median for the 208 Industrials peers that had reported. The margin improved from 6.30% in Q1FY27, a 13.57 percentage-point QoQ rise; the available sequence does not establish a longer multi-quarter direction.
Results came after the market close
SEPC filed its consolidated results at 20:03 IST on 11 November 2026, after market close.
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 | ₹231 cr | ₹274 cr | -15.72% |
| Other income | ₹1 cr | ₹9 cr | -85.60% |
| Expenses | ₹185 cr | ₹257 cr | -27.92% |
| Operating profit | ₹46 cr | ₹17 cr | +165.91% |
| Operating margin (%) | 19.87% | 6.30% | — |
| Interest | ₹9 cr | ₹11 cr | -21.27% |
| Depreciation | ₹1 cr | ₹1 cr | -1.55% |
| Profit before tax | ₹37 cr | ₹13 cr | +179.50% |
| Tax | ₹95 cr | ₹24 cr | +293.68% |
| Net profit | ₹-59 cr | ₹-11 cr | -429.77% |
| EPS (₹) | ₹-0.30 | ₹-0.06 | -400.00% |
Operating margin of 19.87% compares with a Industrials sector median of 11.54% across 208 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 19.87% after the 13.57 percentage-point QoQ increase.
- Whether the tax rate falls from 259.03% of pre-tax profit.
- Whether interest expense remains below Rs 9.03 cr.