Revenue jumped 31.66%, but faster cost growth cut operating margin
Consolidated net profit rose only 3.51% QoQ as expenses grew 42.19%, despite lower interest costs.
Filed 03 Nov 2026, 14:01 IST · SIKKO (SIKKO)
Key takeaways
- Consolidated revenue rose 31.66% QoQ, but expenses grew faster at 42.19%, cutting operating margin by 5.93 percentage points.
- Net profit increased 3.51% QoQ to Rs 3.24 cr, far slower than the revenue increase as operating profit rose only 1.54%.
- Other income contributed just 1.39% of pre-tax profit, so reported earnings were primarily supported by operations.
Revenue growth did not translate into operating profit growth
Consolidated revenue rose 31.66% QoQ, but operating profit increased only 1.54%. The gap reflects the faster rise in expenses, which limited profit conversion despite higher sales. Net profit grew 3.51% QoQ, helped in part by a 45.83% fall in interest costs.
Expense growth drove the 5.93-point margin decline
Expenses increased 42.19% QoQ against 31.66% revenue growth, causing operating margin to narrow by 5.93 percentage points. The tax rate was broadly stable, rising 0.15 percentage points, so tax did not materially distort the quarter's profit movement. Other income fell 33.33% QoQ and represented only 1.39% of pre-tax profit.
The quarter shows weaker sequential profit conversion
Compared with Q1FY27, revenue growth was accompanied by only 1.54% operating-profit growth and 3.51% net-profit growth. Operating margin moved down from 25.79% to 19.86%, marking a clear deterioration in sequential profitability. The available comparison covers one prior quarter, so it does not establish a longer multi-quarter margin trend.
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 | ₹23 cr | ₹18 cr | +31.66% |
| Other income | ₹0 cr | ₹0 cr | -33.33% |
| Expenses | ₹19 cr | ₹13 cr | +42.19% |
| Operating profit | ₹5 cr | ₹5 cr | +1.54% |
| Operating margin (%) | 19.86% | 25.79% | — |
| Interest | ₹0 cr | ₹0 cr | -45.83% |
| Depreciation | ₹0 cr | ₹0 cr | -4.17% |
| Profit before tax | ₹4 cr | ₹4 cr | +3.59% |
| Tax | ₹1 cr | ₹1 cr | +4.76% |
| Net profit | ₹3 cr | ₹3 cr | +3.51% |
| EPS (₹) | ₹0.07 | ₹0.07 | +0.00% |
What to watch
- Whether operating margin recovers from 19.86% after the 5.93-percentage-point QoQ decline.
- Whether expense growth remains above revenue growth, after 42.19% versus 31.66% in Q2FY27.
- Whether interest costs remain below Rs 0.24 cr, the Q1FY27 level, after falling to Rs 0.13 cr.