Faster cost growth narrows SPECIALITY's operating margin in Q2FY27
Revenue rose 6.93% sequentially, but higher depreciation and lower other income pulled net profit down 4.22% despite a lower tax rate.
Filed 03 Nov 2026, 20:30 IST · after market close · SPECIALITY (SPECIALITY)
Key takeaways
- Revenue grew 6.93% sequentially, but expenses grew faster at 7.94%, narrowing operating margin by 0.76 percentage points.
- Net profit fell 4.22% sequentially as depreciation rose 7.57% and other income declined 3.28%.
- Other income contributed 46.99% of profit before tax, while the tax rate fell 2.27 percentage points to cushion the earnings decline.
Revenue growth did not convert into wider operating profit
In consolidated results, revenue increased 6.93% sequentially to Rs 135.83 cr, while operating profit rose only 2.71% to Rs 25.01 cr. Expenses grew 7.94%, faster than revenue, which reduced operating margin by 0.76 percentage points to 18.41%. The results were filed after market close on 03 Nov 2026.
Depreciation and other income drove the profit decline
Profit before tax fell 6.98% sequentially as depreciation increased 7.57% and other income declined 3.28%; interest was nearly unchanged, rising 0.27%. Net profit still fell 4.22% to Rs 6.81 cr, although the 2.27-percentage-point reduction in the tax rate provided some offset. Profit quality was mixed: other income accounted for 46.99% of profit before tax.
Operating margin moved lower from the previous quarter
The 18.41% operating margin was below the 19.17% recorded in Q1FY27, marking a sequential deterioration. With only the previous quarter shown in the trend, the available comparison supports a quarter-on-quarter decline but not a longer multi-quarter direction.
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 | ₹136 cr | ₹127 cr | +6.93% |
| Other income | ₹4 cr | ₹4 cr | -3.28% |
| Expenses | ₹111 cr | ₹103 cr | +7.94% |
| Operating profit | ₹25 cr | ₹24 cr | +2.71% |
| Operating margin (%) | 18.41% | 19.17% | — |
| Interest | ₹4 cr | ₹4 cr | +0.27% |
| Depreciation | ₹17 cr | ₹15 cr | +7.57% |
| Profit before tax | ₹9 cr | ₹9 cr | -6.98% |
| Tax | ₹2 cr | ₹2 cr | -15.38% |
| Net profit | ₹7 cr | ₹7 cr | -4.22% |
| EPS (₹) | ₹1.43 | ₹1.45 | -1.38% |
What to watch
- Whether operating margin holds above 18.41% in the next quarter.
- Whether expense growth falls below the 6.93% sequential revenue-growth rate.
- Whether other income remains a large contributor after accounting for 46.99% of profit before tax.