Flat revenue, but consolidated operating margin slips to 24.82%
A higher expense base reduced operating profit, while management highlighted RFID capacity expansion and one multi-year PSU-bank tender.
Filed 29 Oct 2026, 19:54 IST · after market close · Seshaasai Technologies Ltd (STYL)
Key takeaways
- Consolidated revenue was nearly unchanged at Rs 405.31 cr from Rs 404.18 cr in Q4FY26, but operating margin fell to 24.82% from 29.3%.
- Expenses rose to Rs 304.69 cr from Rs 285.75 cr in Q4FY26, pulling operating profit down to Rs 100.61 cr from Rs 118.43 cr.
- Seshaasai’s 24.82% operating margin was 34.38 percentage points below the 59.2% median for 55 Financial Services peers that had reported.
Price around the results
Revenue held while profit conversion weakened
Consolidated revenue was almost unchanged from Q4FY26, but operating profit declined to Rs 100.61 cr from Rs 118.43 cr. Net profit fell to Rs 69.73 cr from Rs 81.79 cr, with EPS moving to Rs 4.25 from Rs 5.06. The quarter therefore saw weaker profit conversion despite a broadly stable top line.
Higher expenses drove the margin compression
Expenses rose to Rs 304.69 cr from Rs 285.75 cr while revenue moved only from Rs 404.18 cr to Rs 405.31 cr, compressing operating margin from 29.3% to 24.82%. Lower interest expense, at Rs 1.88 cr versus Rs 2.91 cr, did not offset the weaker operating result. Depreciation increased to Rs 10.67 cr from Rs 9.75 cr, while the tax rate eased to 25.8% from 26.83%, providing some support to net profit. Other income of Rs 5.91 cr was modest against profit before tax of Rs 93.97 cr, so reported profit was not primarily dependent on it.
RFID expansion and a PSU-bank tender featured in the update
Management said it had strengthened RFID innovation and expanded capacities for complex, value-added products across industries. The company also said it won one multi-year tender from a PSU bank in Q2FY27. These comments add business context to a quarter in which revenue was stable but margins were lower.
Margin remained well below the reported peer median
Among 55 Financial Services peers that had reported, Seshaasai’s 24.82% operating margin was 34.38 percentage points below the 59.2% sector median and placed it 11th from the bottom. The results were filed after market close on 29 October 2026, so there is no post-results market reaction to assess yet.
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 | ₹405 cr |
| Other income | ₹6 cr |
| Expenses | ₹305 cr |
| Operating profit | ₹101 cr |
| Operating margin (%) | 24.82% |
| Interest | ₹2 cr |
| Depreciation | ₹11 cr |
| Profit before tax | ₹94 cr |
| Tax | ₹24 cr |
| Net profit | ₹70 cr |
| EPS (₹) | ₹4.25 |
Operating margin of 24.82% compares with a Financial Services sector median of 59.20% across 55 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Expansion
- The company strengthened RFID innovation and expanded capacities to deliver complex, value-added products across industries.
New orders
- The company won one multi-year tender from a PSU bank in Q2FY27.
What to watch
- Whether operating margin recovers from 24.82% after falling from 29.3% in Q4FY26.
- Whether expenses moderate from Rs 304.69 cr as revenue remains near Rs 405.31 cr.
- Progress on the multi-year PSU-bank tender and the RFID capacity expansion described by management.