SML Mahindra's 4.26% margin trails Industrials peers by 8.17 points
Standalone net profit was Rs 11.7 cr, while other income contributed only Rs 1.6 cr to pre-tax profit of Rs 15.85 cr.
Filed 19 Oct 2026, 16:27 IST · after market close · SML Mahindra Ltd (SMLMAH)
Key takeaways
- Standalone operating margin was 4.26%, 8.17 percentage points below the Industrials peer median.
- SML Mahindra reported standalone net profit of Rs 11.7 cr, with EPS at Rs 8.09.
- Other income was Rs 1.6 cr, while the tax rate was 26.18%.
Price around the results
A thin operating cushion in Q2FY27
SML Mahindra's standalone operating margin was 4.26%, leaving limited room between operating profit and the expense base. Operating profit was Rs 28.51 cr on revenue of Rs 669.79 cr. With no period comparison available, the margin level and its peer position are the clearest read on the quarter.
Margin sits near the bottom of the Industrials set
Among 15 Industrials companies that had reported the same quarter, SML Mahindra's 4.26% operating margin was 8.17 percentage points below the sector median of 12.43%. It ranked third from the bottom, making the operating margin the main point of differentiation in this result.
Other income was not the main profit driver
Other income was Rs 1.6 cr against profit before tax of Rs 15.85 cr, so reported pre-tax profit was primarily generated below the operating line rather than by non-operating income. The standalone tax rate was 26.18%, and interest expense was Rs 0.9 cr. The results were filed after market close on 19 October 2026, so there is no market reaction to assess yet.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 |
|---|---|
| Revenue | ₹670 cr |
| Other income | ₹2 cr |
| Expenses | ₹641 cr |
| Operating profit | ₹29 cr |
| Operating margin (%) | 4.26% |
| Interest | ₹1 cr |
| Depreciation | ₹13 cr |
| Profit before tax | ₹16 cr |
| Tax | ₹4 cr |
| Net profit | ₹12 cr |
| EPS (₹) | ₹8.09 |
Operating margin of 4.26% compares with a Industrials sector median of 12.43% across 15 peers that have reported Q2FY27.
What to watch
- Whether standalone operating margin moves up from 4.26%.
- Whether other income remains around Rs 1.6 cr.
- Whether the tax rate stays near 26.18%.