Revenue jumps 30.71%, but faster costs cut operating margin
Net profit rose 30.17% sequentially as lower interest and tax rates partly offset cost growth that exceeded revenue growth.
Filed 29 Oct 2026, 18:23 IST · after market close · Silver Touch Technologies Ltd (SILVERTUC)
Key takeaways
- Consolidated revenue rose 30.71% QoQ, but expenses grew 32.11%, cutting operating margin by 0.86 percentage points to 19.67%.
- Net profit increased 30.17% QoQ as interest expense fell 8.55% and the tax rate declined 0.66 percentage points, while EPS fell 34.81% to Rs 1.03.
- Operating margin was 1.14 percentage points above the 18.53% median across 34 reported Information Technology peers.
Price around the results
Growth accelerated, but costs grew faster
On a consolidated basis, revenue increased 30.71% from Q1FY27, while operating profit grew at a slower 25.27% pace. Expenses rose 32.11%, outpacing revenue and explaining the 0.86-percentage-point decline in operating margin. Other income fell 16.92% sequentially, so the quarter's growth was primarily operational rather than driven by non-operating income.
Lower interest and tax rates supported reported profit
Interest expense declined 8.55% QoQ, while the tax rate fell by 0.66 percentage points; both helped profit before tax translate into a 30.17% increase in net profit. Other income accounted for 6.38% of profit before tax, a limited contribution to reported earnings. EPS nevertheless declined 34.81% to Rs 1.03, despite the rise in net profit.
Margin remains above the IT peer median
The 19.67% operating margin was 1.14 percentage points above the 18.53% median among 34 Information Technology peers that had reported the quarter. Sequentially, however, margin moved down from 20.53%, marking a clear deterioration in the latest quarter. The company filed these consolidated results after market close on 29 October 2026, so no post-results market reaction is covered here.
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 | ₹100 cr | ₹77 cr | +30.71% |
| Other income | ₹1 cr | ₹1 cr | -16.92% |
| Expenses | ₹81 cr | ₹61 cr | +32.11% |
| Operating profit | ₹20 cr | ₹16 cr | +25.27% |
| Operating margin (%) | 19.67% | 20.53% | — |
| Interest | ₹1 cr | ₹2 cr | -8.55% |
| Depreciation | ₹2 cr | ₹2 cr | +2.49% |
| Profit before tax | ₹17 cr | ₹13 cr | +29.12% |
| Tax | ₹4 cr | ₹3 cr | +25.32% |
| Net profit | ₹13 cr | ₹10 cr | +30.17% |
| EPS (₹) | ₹1.03 | ₹1.58 | -34.81% |
Operating margin of 19.67% compares with a Information Technology sector median of 18.53% across 34 peers that have reported Q2FY27.
What to watch
- Whether operating margin recovers from 19.67% after the 0.86-percentage-point sequential decline.
- Whether expenses continue to grow faster than revenue after rising 32.11% against 30.71% revenue growth.
- Whether EPS moves up from Rs 1.03 after falling 34.81% sequentially.