Sigma Solve's margin rose, but net profit fell 45.79% on lower other income
Revenue grew 1.65% quarter on quarter and expenses fell 2.62%, but other income dropped 90.08%, pulling down profit before tax and net profit.
Filed 03 Nov 2026, 16:07 IST · after market close · Sigma Solve Ltd (SIGMA)
Key takeaways
- Consolidated operating margin expanded 2.82 percentage points quarter on quarter to 36.42% as expenses fell 2.62% while revenue grew 1.65%.
- Net profit declined 45.79% quarter on quarter to Rs 6.82 cr because other income fell 90.08% to Rs 0.89 cr, despite operating profit rising 10.21%.
- Sigma Solve's 36.42% operating margin was 17.15 percentage points above the 19.27% median of 51 reported information technology peers.
Price around the results
Operating gains were offset by a collapse in other income
Sigma Solve reported consolidated revenue growth of 1.65% quarter on quarter, while expenses declined 2.62%, lifting operating profit by 10.21%. The benefit did not carry through to reported profit because other income fell from Rs 8.97 cr in Q1FY27 to Rs 0.89 cr in Q2FY27. Other income still contributed 9.68% of profit before tax, while the higher 24.50% tax rate also reduced the conversion of operating gains into net profit.
Cost control widened the operating margin
Operating margin increased 2.82 percentage points to 36.42% as costs did not grow faster than revenue; expenses fell even as revenue rose. This marks an improvement from the 33.60% margin in Q1FY27, although the quarter's profit before tax fell 44.24% because the other-income contribution was much smaller.
Margin remained well above the reported IT peer median
Sigma Solve's 36.42% operating margin was 17.15 percentage points above the 19.27% median among 51 information technology peers that had reported the same quarter. The available comparison is sequential: revenue growth was modest at 1.65%, while the margin expanded from the previous quarter's 33.60%.
Results were filed after market close
The company filed its consolidated Q2FY27 results after market close on 3 November 2026. The filing therefore does not yet provide a market reaction to assess against the stock's post-results history.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹23 cr | ₹23 cr | +1.65% |
| Other income | ₹1 cr | ₹9 cr | -90.08% |
| Expenses | ₹15 cr | ₹15 cr | -2.62% |
| Operating profit | ₹9 cr | ₹8 cr | +10.21% |
| Operating margin (%) | 36.42% | 33.60% | — |
| Interest | ₹0 cr | ₹0 cr | +0.00% |
| Depreciation | ₹0 cr | ₹0 cr | -5.26% |
| Profit before tax | ₹9 cr | ₹16 cr | -44.24% |
| Tax | ₹2 cr | ₹4 cr | -42.31% |
| Net profit | ₹7 cr | ₹13 cr | -45.79% |
| EPS (₹) | ₹0.66 | ₹1.22 | -45.90% |
Operating margin of 36.42% compares with a Information Technology sector median of 19.27% across 51 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 36.42% while expenses remain below Q1FY27's Rs 15.29 cr.
- Whether other income remains near Rs 0.89 cr rather than the prior quarter's Rs 8.97 cr.
- Whether revenue growth moves beyond the quarter-on-quarter pace of 1.65%.