Tempsens flags 9% cable revenue decline as Q1 margin lands at 20.01%
Management attributed the cable drop to export-order timing, while higher employee costs and a new ESOP charge added pressure.
Filed 16 Sep 2026, 19:09 IST · after market close · TEMPSENS (TEMPSENS)
Key takeaways
- Consolidated Q1FY27 operating margin was 20.01% as employee-benefit costs rose and an ESOP charge appeared without a Q1 FY26 comparable.
- Specialised Cables revenue declined approximately 9% YoY, which management attributed to the timing of export-order execution.
- Other income of Rs 2.84 cr sat alongside Rs 21.39 cr of consolidated pre-tax profit, making non-operating income a factor in reported earnings.
People costs shaped the 20.01% operating margin
Consolidated operating profit was Rs 23.76 cr on revenue of Rs 118.71 cr, leaving an operating margin of 20.01%. Management said employee-benefit expenses increased as it expanded headcount and organisational capability, while an ESOP charge was recorded in Q1 FY27 with no comparable charge in Q1 FY26. These additional costs are the clearest disclosed explanation for the operating-cost burden this quarter.
Cable timing offset by longer-cycle initiatives
The Specialised Cables segment declined approximately 9% YoY, and management attributed the fall to the timing of export-order execution. The company said it plans to expand MRO services to build recurring revenue streams and has entered a five-year supply arrangement with a life-sciences OEM for standard furnaces. Management also said explosion-proof certification for medium-voltage heaters is targeted for Q4 FY27.
Profit included other income; filing came after close
Other income of Rs 2.84 cr contributed alongside operating earnings to consolidated pre-tax profit of Rs 21.39 cr, while the tax rate was 23.94%. The company filed the Q1FY27 results after market close on 16 September 2026, so the immediate market response is not part of this update.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹119 cr |
| Other income | ₹3 cr |
| Expenses | ₹95 cr |
| Operating profit | ₹24 cr |
| Operating margin (%) | 20.01% |
| Interest | ₹1 cr |
| Depreciation | ₹4 cr |
| Profit before tax | ₹21 cr |
| Tax | ₹5 cr |
| Net profit | ₹16 cr |
| EPS (₹) | ₹1.88 |
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- Explosion-proof certification for medium-voltage heaters is targeted for Q4 FY27.
New orders
- The company entered a five-year supply arrangement with an OEM customer in life sciences for standard furnaces.
New initiatives
- The company plans to expand MRO services to build stable, recurring revenue streams.
Problems & risks
- Employee benefit expenses increased as the company strengthened organisational capability and expanded headcount.
- An ESOP charge was recognised in Q1 FY27 with no comparable charge in Q1 FY26.
- Specialised Cables segment revenue declined approximately 9% year on year in Q1 FY27.
- The Specialised Cables revenue decline reflected the timing of export order execution.
What to watch
- Whether consolidated operating margin holds above 20.01%.
- Whether Specialised Cables revenue recovers from the approximately 9% YoY decline as export-order execution progresses.
- Progress toward the company’s Q4 FY27 target for explosion-proof certification of medium-voltage heaters.