SRIT margin widens 5.55 points as revenue growth outpaces costs
Operating profit rose 66.08% QoQ, but other income formed 26.73% of pre-tax profit and the tax rate increased by 2 percentage points.
Filed 13 Nov 2026, 00:12 IST · SRIT (SRIT)
Key takeaways
- Consolidated revenue rose 19.23% QoQ to Rs 104.7 cr, while expenses grew 11.53%, lifting operating margin by 5.55 percentage points.
- Net profit climbed 101.76% QoQ to Rs 13.74 cr despite a 2 percentage-point rise in the tax rate.
- Other income contributed 26.73% of pre-tax profit, making a sizeable part of earnings non-operating.
Revenue growth translated into a wider operating spread
In consolidated Q2FY27 results, revenue grew 19.23% QoQ, while expenses increased 11.53%. That gap lifted operating profit 66.08% and expanded operating margin from 14.14% to 19.69%, or by 5.55 percentage points. This is an improvement over the preceding quarter, with the available sequence showing margin expansion rather than a continuing decline.
Profit growth was helped by non-operating income
Pre-tax profit rose 107.35% QoQ, ahead of operating profit growth, partly because other income increased 68.33% and accounted for 26.73% of pre-tax profit. That makes the quarter's earnings quality more mixed than the operating improvement alone suggests. Interest expense also rose 13.31%, while depreciation was broadly unchanged, increasing 0.68%.
Higher tax rate tempered the conversion to net profit
The tax rate increased by 2 percentage points to 27.27%, and tax expense rose 123.91% QoQ. Even so, net profit increased 101.76% to Rs 13.74 cr, while EPS rose 102.8% to Rs 2.9. The higher tax rate reduced the portion of pre-tax profit converting into net profit.
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 | ₹105 cr | ₹88 cr | +19.23% |
| Other income | ₹5 cr | ₹3 cr | +68.33% |
| Expenses | ₹84 cr | ₹75 cr | +11.53% |
| Operating profit | ₹21 cr | ₹12 cr | +66.08% |
| Operating margin (%) | 19.69% | 14.14% | — |
| Interest | ₹4 cr | ₹3 cr | +13.31% |
| Depreciation | ₹3 cr | ₹3 cr | +0.68% |
| Profit before tax | ₹19 cr | ₹9 cr | +107.35% |
| Tax | ₹5 cr | ₹2 cr | +123.91% |
| Net profit | ₹14 cr | ₹7 cr | +101.76% |
| EPS (₹) | ₹2.90 | ₹1.43 | +102.80% |
What to watch
- Whether operating margin holds above 19.69% in the next quarter.
- Whether other income remains below or above its 26.73% share of pre-tax profit.
- Whether interest expense growth stays near the latest 13.31% QoQ increase.