South West Pinnacle falls -10.93% as Q2 margin trails sector median
Consolidated operating margin was 14.42%, 4.89 percentage points below the 19.31% median for 59 Services peers.
Filed 06 Nov 2026, 15:04 IST · South West Pinnacle Exploration Ltd (SOUTHWEST)
Key takeaways
- Consolidated operating margin was 14.42%, with expenses of Rs 49.40 cr absorbing most of the Rs 57.73 cr revenue.
- Other income of Rs 1.83 cr supplemented consolidated profit before tax of Rs 5.02 cr, making earnings quality worth monitoring.
- The stock fell -10.93% on 6 November after the results were filed, with trading volume at 1.1 times the reference level.
Price around the results
Operating profit converted weakly into earnings
South West Pinnacle reported consolidated net profit of Rs 3.98 cr and EPS of Rs 1.23. Other income of Rs 1.83 cr supplemented profit before tax of Rs 5.02 cr, so earnings were not generated solely by operating activity. Interest of Rs 1.69 cr and depreciation of Rs 3.45 cr further reduced the operating profit contribution.
Q2 margin sat below the Services peer median
Expenses of Rs 49.40 cr against revenue of Rs 57.73 cr left limited conversion into operating profit, reflected in the 14.42% operating margin. That was 4.89 percentage points below the 19.31% median among 59 Services companies that had reported the same quarter.
Market reaction was sharply negative
The stock fell -10.93% on 6 November, while the gap move at the open was -2.81%. The decline came with volume at 1.1 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 |
|---|---|
| Revenue | ₹58 cr |
| Other income | ₹2 cr |
| Expenses | ₹49 cr |
| Operating profit | ₹8 cr |
| Operating margin (%) | 14.42% |
| Interest | ₹2 cr |
| Depreciation | ₹3 cr |
| Profit before tax | ₹5 cr |
| Tax | ₹1 cr |
| Net profit | ₹4 cr |
| EPS (₹) | ₹1.23 |
Operating margin of 14.42% compares with a Services sector median of 19.31% across 59 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -10.93% | -12.94% |
Volume on the results session was 1.10× its 20-day average.
What to watch
- Whether consolidated operating margin moves up from 14.42% and narrows the 4.89-point gap to the Services median.
- Whether other income remains at Rs 1.83 cr or becomes a smaller contributor to profit before tax.
- Whether consolidated net profit remains above Rs 3.98 cr while EPS remains above Rs 1.23.