Steel City’s operating margin drops 11.94 points sequentially
Revenue fell 13.08% while expenses rose 4.93%, and other income supplied 19.43% of pre-tax profit.
Filed 04 Nov 2026, 18:51 IST · after market close · Steel City Securities Ltd (STEELCITY)
Key takeaways
- Consolidated operating margin fell 11.94 percentage points sequentially to 30.18% as revenue declined 13.08% and expenses rose 4.93%.
- Consolidated net profit declined 37.65% QoQ to Rs 4.24 cr, while the tax rate changed by only -0.03 percentage points.
- At 30.18%, Steel City’s operating margin was 21.48 percentage points below the 51.66% median of 93 reported Financial Services peers.
Price around the results
Revenue fell as costs moved higher
Consolidated revenue declined 13.08% QoQ to Rs 16.75 cr, while expenses rose 4.93% to Rs 11.70 cr. Costs therefore grew as revenue contracted, cutting operating profit by 37.68% and narrowing operating margin by 11.94 percentage points to 30.18%. Interest expense also increased 13.64% sequentially.
Other income remained material to profit
Other income fell 22.54% QoQ but still contributed 19.43% of pre-tax profit, so reported earnings were not entirely generated by operations. The tax rate changed by only -0.03 percentage points, indicating that the 37.65% decline in net profit was mainly linked to lower operating and pre-tax profit rather than a tax-rate effect.
Margin trails the Financial Services peer median
Steel City’s 30.18% operating margin was 21.48 percentage points below the 51.66% median among 93 Financial Services companies that had reported the quarter. The available sequential comparison shows a sharp reversal from Q1FY27’s 42.12% operating margin; there is no year-on-year comparison in this quarter’s results.
Results were filed after market close
The consolidated results were filed after market close on 4 November 2026. The next trading session will provide the first market response to the quarter.
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 | ₹17 cr | ₹19 cr | -13.08% |
| Other income | ₹1 cr | ₹1 cr | -22.54% |
| Expenses | ₹12 cr | ₹11 cr | +4.93% |
| Operating profit | ₹5 cr | ₹8 cr | -37.68% |
| Operating margin (%) | 30.18% | 42.12% | — |
| Interest | ₹0 cr | ₹0 cr | +13.64% |
| Depreciation | ₹0 cr | ₹0 cr | +0.00% |
| Profit before tax | ₹6 cr | ₹9 cr | -37.73% |
| Tax | ₹1 cr | ₹2 cr | -37.72% |
| Net profit | ₹4 cr | ₹7 cr | -37.65% |
| EPS (₹) | ₹2.81 | ₹4.50 | -37.56% |
Operating margin of 30.18% compares with a Financial Services sector median of 51.66% across 93 peers that have reported Q2FY27.
What to watch
- Whether consolidated revenue moves back above Rs 16.75 cr after the -13.08% sequential decline.
- Whether operating margin recovers from 30.18% while expenses moderate from Rs 11.70 cr.
- Whether other income’s contribution falls below 19.43% of pre-tax profit.