Shree Rama Multi-Tech profit falls as finance and depreciation costs rise
Revenue declined 4.43% sequentially, but a slightly faster fall in expenses kept operating margin almost unchanged at 16.76%.
Filed 30 Oct 2026, 12:50 IST · Shree Rama Multi-Tech Ltd (SHREERAMA)
Key takeaways
- Standalone revenue fell 4.43% sequentially to Rs 76.95 cr, while expenses declined 4.46%, leaving operating margin broadly unchanged.
- Net profit declined 9.06% sequentially to Rs 7.33 cr as interest rose 39.13% and depreciation increased 17.90%.
- Operating margin at 16.76% was 4.33 percentage points above the 12.43% median for 75 Industrials peers reporting the quarter.
Price around the results
Lower revenue, stable operating margin
Standalone revenue declined 4.43% sequentially, while expenses fell 4.46%, so operating margin improved by just 0.02 percentage points to 16.76%. The limited margin movement shows that the lower revenue was broadly matched by lower costs. The margin remained 4.33 percentage points above the 12.43% median among 75 Industrials peers that had reported.
Higher interest and depreciation cut profit
Profit before tax fell 11.17% sequentially because interest increased 39.13% and depreciation rose 17.90%. The lower tax rate, down 1.65 percentage points to 26.30%, partly cushioned the impact on net profit, which declined 9.06%. Other income contributed only 0.60% of profit before tax, so it did not materially support reported earnings.
Shares fell 4.99% on the results day
The stock declined 4.99% on the results day, with an initial gap of -0.81% and relative performance of -5.50%. The move came despite operating margin remaining above the reported sector median, as investors focused on the sequential fall in revenue and the rise in interest and depreciation.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹77 cr | ₹81 cr | -4.43% |
| Other income | ₹0 cr | ₹0 cr | -73.91% |
| Expenses | ₹64 cr | ₹67 cr | -4.46% |
| Operating profit | ₹13 cr | ₹13 cr | -4.30% |
| Operating margin (%) | 16.76% | 16.74% | — |
| Interest | ₹0 cr | ₹0 cr | +39.13% |
| Depreciation | ₹3 cr | ₹2 cr | +17.90% |
| Profit before tax | ₹10 cr | ₹11 cr | -11.17% |
| Tax | ₹3 cr | ₹3 cr | -16.29% |
| Net profit | ₹7 cr | ₹8 cr | -9.06% |
| EPS (₹) | ₹0.53 | ₹0.58 | -8.62% |
Operating margin of 16.76% compares with a Industrials sector median of 12.43% across 75 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -4.99% | -5.50% |
Volume on the results session was 0.53× its 20-day average.
What to watch
- Whether revenue recovers from Rs 76.95 cr in the next quarter.
- Whether operating margin holds above 16.76%.
- Whether interest and depreciation moderate from Rs 0.32 cr and Rs 2.70 cr.