Revenue surged, but faster costs drove a third straight margin decline
Consolidated profit rose 14.22% YoY as interest expense jumped 275.29%; the 16.62% margin remained 3.67 percentage points above the sector median.
Filed 30 Oct 2026, 18:19 IST · after market close · SPR Auto Technologies Ltd (SHRIPISTON)
Key takeaways
- Revenue rose 62.14% year on year, but expenses grew faster at 69.83%, driving a 3.77 percentage-point contraction in operating margin.
- Net profit increased only 14.22% year on year as interest costs rose 275.29% and depreciation rose 70.25%.
- Operating margin at 16.62% remained 3.53 percentage points above the 13.09% median for 129 Consumer Discretionary peers.
Price around the results
Revenue growth did not translate into similar profit growth
In consolidated results, revenue grew 62.14% year on year and 11.79% sequentially, but net profit rose only 14.22% and 9.88%, respectively. Sequentially, interest fell 6.73%, but expenses still grew faster than revenue, limiting operating profit growth to 6.16%.
Operating margin has fallen every quarter since Q2FY26
Operating margin narrowed 3.77 percentage points year on year and 0.88 percentage points sequentially to 16.62%, because costs grew faster than revenue in both comparisons. The margin has declined each quarter from 20.39% in Q2FY26 to 18.40% in Q4FY26, 17.50% in Q1FY27 and 16.62% now. Even after that four-quarter slide, it was 3.53 percentage points above the 13.09% median among 129 reported Consumer Discretionary peers.
Other income and tax helped, but did not offset cost pressure
Other income contributed 12.40% of pre-tax profit, making it a meaningful part of reported earnings quality. The tax rate fell 2.37 percentage points year on year and 0.56 percentage points sequentially, which supported net profit growth. However, pre-tax profit rose only 10.65% year on year as financing and depreciation costs increased sharply.
Results were filed after the market close
The results were filed after market close, so there is no reported share-price reaction yet. In the last eight results reactions, the stock rose after five and fell after three, with a median absolute move of 2.29%.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,648 cr | ₹1,474 cr | +11.79% | +62.14% |
| Other income | ₹26 cr | ₹25 cr | +6.45% | +0.76% |
| Expenses | ₹1,374 cr | ₹1,216 cr | +12.98% | +69.83% |
| Operating profit | ₹274 cr | ₹258 cr | +6.16% | +32.13% |
| Operating margin (%) | 16.62% | 17.50% | — | — |
| Interest | ₹32 cr | ₹34 cr | -6.73% | +275.29% |
| Depreciation | ₹56 cr | ₹53 cr | +3.93% | +70.25% |
| Profit before tax | ₹213 cr | ₹195 cr | +9.07% | +10.65% |
| Tax | ₹51 cr | ₹48 cr | +6.53% | +0.60% |
| Net profit | ₹162 cr | ₹148 cr | +9.88% | +14.22% |
| EPS (₹) | ₹35.13 | ₹32.78 | +7.17% | +10.61% |
Operating margin of 16.62% compares with a Consumer Discretionary sector median of 13.09% across 129 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 16.62% after four consecutive quarterly declines.
- Whether expense growth moderates from 69.83% year on year and 12.98% sequentially.
- Whether interest costs remain below the current Rs 31.9 cr after rising 275.29% year on year.