SIS margin edges up but remains 7.27 points below sector median
Revenue grew faster than expenses sequentially, but higher depreciation, tax and reliance on other income shaped the quarter.
Filed 04 Nov 2026, 17:16 IST · after market close · SIS Ltd (SIS)
Key takeaways
- SIS's consolidated operating margin rose 0.14 percentage points QoQ to 4.64%, but remained 7.27 percentage points below the sector median.
- Revenue grew +4.61% QoQ while expenses rose +4.46%, helping operating profit increase +7.84%.
- Other income accounted for 20.66% of pre-tax profit, while a 4.78-percentage-point rise in the tax rate limited net profit growth to +8.91%.
Price around the results
Sequential growth lifted SIS's operating margin
SIS's consolidated revenue grew +4.61% QoQ, while expenses increased +4.46%, allowing operating profit to rise +7.84%. The resulting operating-margin improvement of 0.14 percentage points was modest but marked a better cost-to-revenue movement than in Q1FY27.
Tax and other income affected profit quality
Pre-tax profit grew +14.66% QoQ, but other income made up 20.66% of it, so reported profit was not solely driven by operations. The tax rate rose 4.78 percentage points, while interest increased +1.00% and depreciation rose +8.56%, leaving net profit growth at +8.91%.
Margin trails the Consumer Discretionary peer set
SIS's 4.64% operating margin was 7.27 percentage points below the 11.91% median among 223 Consumer Discretionary companies that had reported the quarter. The two-quarter trend shows a sequential margin improvement from 4.50% in Q1FY27, rather than a sustained multi-quarter direction.
Results were filed after market close
SIS filed its consolidated Q2FY27 results after market close on 4 November 2026. The stock's market reaction is therefore not part of this update.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹4,816 cr | ₹4,604 cr | +4.61% |
| Other income | ₹25 cr | ₹20 cr | +26.57% |
| Expenses | ₹4,593 cr | ₹4,396 cr | +4.46% |
| Operating profit | ₹223 cr | ₹207 cr | +7.84% |
| Operating margin (%) | 4.64% | 4.50% | — |
| Interest | ₹59 cr | ₹58 cr | +1.00% |
| Depreciation | ₹68 cr | ₹63 cr | +8.56% |
| Profit before tax | ₹122 cr | ₹106 cr | +14.66% |
| Tax | ₹11 cr | ₹5 cr | +138.35% |
| Net profit | ₹111 cr | ₹102 cr | +8.91% |
| EPS (₹) | ₹7.86 | ₹7.19 | +9.32% |
Operating margin of 4.64% compares with a Consumer Discretionary sector median of 11.91% across 223 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 4.64% after its 0.14-percentage-point QoQ improvement.
- Whether other income's 20.66% share of pre-tax profit declines in the next quarter.
- Whether depreciation growth remains below the +8.56% QoQ increase recorded this quarter.