SMC Global profit drops 23.16% as costs and interest rise
Revenue rose 3.37% QoQ, but costs grew faster; higher interest and a 4.34-point tax-rate increase pulled net profit down 23.16%.
Filed 26 Oct 2026, 21:30 IST · after market close · SMC Global Securities Ltd (SMCGLOBAL)
Key takeaways
- Consolidated net profit fell 23.16% QoQ to Rs 28.23 cr as expenses grew 5.59% against revenue growth of 3.37%.
- Operating margin narrowed by 1.70 percentage points QoQ to 19.06%, while interest expense rose 8.72% and the tax rate increased by 4.34 percentage points.
- SMC Global's 19.06% operating margin was 42.23 percentage points below the 61.29% median for 35 Financial Services peers, ranking sixth from the bottom.
Price around the results
Revenue growth did not translate into profit growth
Consolidated revenue increased 3.37% QoQ to Rs 532.45 cr, but expenses grew faster at 5.59% to Rs 430.96 cr. That cost mismatch reduced operating profit by 5.10% to Rs 101.49 cr and pulled net profit down 23.16% to Rs 28.23 cr.
Higher costs, interest and tax rate squeezed earnings
The faster rise in expenses narrowed operating margin by 1.70 percentage points to 19.06%. Interest expense increased 8.72% to Rs 60.34 cr, while the tax rate rose by 4.34 percentage points to 25.48%, adding to the decline below operating profit. Other income contributed 6.36% of pre-tax profit, so it was not the main support for earnings.
Margin moved lower and remains below the peer median
Operating margin fell from 20.76% in Q1FY27 to 19.06% in Q2FY27, extending the sequential deterioration. The margin was 42.23 percentage points below the 61.29% median among 35 Financial Services peers that had reported the quarter, placing SMC Global sixth from the bottom.
Shares fell after the after-close filing
The consolidated results were filed after market close on 26 October, and the stock fell 2.24% in the session on 27 October. Its relative return against the market was negative by 2.22%, while trading volume was 0.22 times the reference level.
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 | ₹532 cr | ₹515 cr | +3.37% |
| Other income | ₹2 cr | ₹1 cr | +363.46% |
| Expenses | ₹431 cr | ₹408 cr | +5.59% |
| Operating profit | ₹101 cr | ₹107 cr | -5.10% |
| Operating margin (%) | 19.06% | 20.76% | — |
| Interest | ₹60 cr | ₹56 cr | +8.72% |
| Depreciation | ₹6 cr | ₹5 cr | +5.96% |
| Profit before tax | ₹38 cr | ₹47 cr | -18.68% |
| Tax | ₹10 cr | ₹10 cr | -2.03% |
| Net profit | ₹28 cr | ₹37 cr | -23.16% |
| EPS (₹) | ₹1.33 | ₹1.75 | -24.00% |
Operating margin of 19.06% compares with a Financial Services sector median of 61.29% across 35 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -2.24% | -2.22% |
Volume on the results session was 0.22× its 20-day average.
What to watch
- Whether operating margin recovers from 19.06% after the 1.70-percentage-point QoQ decline.
- Whether expense growth stays above revenue growth, after rising 5.59% versus 3.37% this quarter.
- Whether interest growth moderates from 8.72% and the tax rate moves below 25.48%.