Savita profit falls 26.45% QoQ as costs outpace revenue
Year-on-year earnings remained sharply higher as revenue growth outpaced expenses and operating margin improved 12.3 percentage points.
Filed 03 Nov 2026, 16:12 IST · after market close · Savita Oil Technologies Ltd (SOTL)
Key takeaways
- Consolidated net profit rose 421.95% year on year to Rs 211.86 cr, but fell 26.45% sequentially.
- Operating margin expanded 12.3 percentage points year on year to 17.07%, while costs grew 27.04% sequentially against 15.52% revenue growth.
- Other income was only 1.66% of pre-tax profit, while the 1.68-percentage-point year-on-year tax-rate decline also supported earnings.
Price around the results
Sequential margin reversal follows a sharp Q1 peak
This was a mixed quarter for consolidated momentum: revenue grew 15.52% sequentially, but operating profit fell 19.82% and net profit declined 26.45%. Expenses rose 27.04%, faster than revenue, reducing operating margin by 7.52 percentage points to 17.07%. Interest expense also increased 70.45% sequentially to Rs 6.75 cr.
Year-on-year earnings recovery was driven by operating profit
Compared with Q2FY26, revenue increased 58.88% while expenses rose 38.37%, lifting operating profit 467.97% and expanding operating margin by 12.3 percentage points. Net profit increased 421.95%, with the year-on-year tax rate lower by 1.68 percentage points. Other income contributed only 1.66% of pre-tax profit, so the quarter's earnings were not materially dependent on non-operating income.
Margin remains above the Energy peer median
Savita's 17.07% operating margin was 1.87 percentage points above the 15.2% median for the 20 Energy peers that had reported the same quarter. The margin has now risen from 3.77% in Q3FY26 to 5.31% in Q4FY26 and 24.59% in Q1FY27 before falling to 17.07% this quarter, leaving the sequential direction negative after three quarters of improvement.
Results were filed after the close; market reaction is pending
The consolidated results were filed after market close, so there is no reported market reaction yet. Across the last eight result reactions, the stock rose three times and fell five times, with a median absolute move of 3.28%, providing the recent context for the eventual response.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,709 cr | ₹1,480 cr | +15.52% | +58.88% |
| Other income | ₹5 cr | ₹33 cr | -85.75% | -67.59% |
| Expenses | ₹1,418 cr | ₹1,116 cr | +27.04% | +38.37% |
| Operating profit | ₹292 cr | ₹364 cr | -19.82% | +467.97% |
| Operating margin (%) | 17.07% | 24.59% | — | — |
| Interest | ₹7 cr | ₹4 cr | +70.45% | +67.91% |
| Depreciation | ₹7 cr | ₹6 cr | +6.00% | +3.65% |
| Profit before tax | ₹283 cr | ₹387 cr | -26.77% | +410.22% |
| Tax | ₹71 cr | ₹99 cr | -27.68% | +378.26% |
| Net profit | ₹212 cr | ₹288 cr | -26.45% | +421.95% |
| EPS (₹) | ₹30.90 | ₹42.01 | -26.45% | +421.96% |
Operating margin of 17.07% compares with a Energy sector median of 15.20% across 20 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 17.07% after the 7.52-percentage-point sequential decline.
- Whether expense growth moderates from 27.04% sequentially relative to revenue growth of 15.52%.
- Whether interest expense remains near the current Rs 6.75 cr after its 70.45% sequential increase.