Smartlink's profit falls 27.81% QoQ as costs outpace revenue
Revenue grew 23.13%, but expenses rose 25.52%; other income still accounted for 45.16% of consolidated pre-tax profit.
Filed 28 Oct 2026, 13:04 IST · SMARTLINK (SMARTLINK)
Key takeaways
- Consolidated revenue grew 23.13% QoQ, but expenses rose 25.52%, cutting operating margin by 1.80 percentage points.
- Consolidated net profit declined 27.81% QoQ as operating profit fell 8.44% and other income dropped 40.34%.
- Other income contributed 45.16% of pre-tax profit, while the tax rate increased by 1.31 percentage points to 25.98%.
Q2FY27 revenue growth did not translate into operating profit
Smartlink's consolidated revenue increased 23.13% QoQ, but operating profit declined 8.44%. Expenses grew 25.52%, faster than revenue, so operating margin narrowed by 1.80 percentage points to 5.27%.
Other income remained important to consolidated earnings
Other income fell 40.34% QoQ and accounted for 45.16% of pre-tax profit, making reported earnings less dependent on operations alone. Interest expense dropped 40.91%, but that saving did not offset the lower operating profit and other income.
Profit decline was sharper than the revenue trend
Compared with Q1FY27, pre-tax profit fell 26.48% and net profit declined 27.81%, despite the 23.13% increase in revenue. The tax rate also rose by 1.31 percentage points, adding to the pressure on net profit.
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 | ₹80 cr | ₹65 cr | +23.13% |
| Other income | ₹2 cr | ₹4 cr | -40.34% |
| Expenses | ₹76 cr | ₹61 cr | +25.52% |
| Operating profit | ₹4 cr | ₹5 cr | -8.44% |
| Operating margin (%) | 5.27% | 7.07% | — |
| Interest | ₹0 cr | ₹0 cr | -40.91% |
| Depreciation | ₹1 cr | ₹1 cr | +0.92% |
| Profit before tax | ₹5 cr | ₹7 cr | -26.48% |
| Tax | ₹1 cr | ₹2 cr | -22.83% |
| Net profit | ₹4 cr | ₹6 cr | -27.81% |
| EPS (₹) | ₹4.06 | ₹5.62 | -27.76% |
What to watch
- Whether operating margin moves back above 5.27% after the 1.80-percentage-point QoQ decline.
- Whether expenses grow more slowly than revenue after rising 25.52% versus revenue growth of 23.13%.
- Whether other income remains a large earnings contributor after accounting for 45.16% of pre-tax profit.