Costs outpace revenue growth as Tempsens margin slips sequentially
Consolidated net profit rose +119.42% QoQ, but lower taxes and other income cushioned a weaker operating conversion.
Filed 30 Oct 2026, 20:44 IST · after market close · Tempsens Instruments (India) Ltd (TEMPSENS)
Key takeaways
- Consolidated revenue rose +114.83% QoQ to Rs 255.02 cr, but expenses grew faster at +117.23%, limiting operating-profit growth to +105.22%.
- Operating margin declined 0.89 percentage points to 19.12% as costs outpaced revenue, though it remained 6.69 percentage points above the Industrials peer median.
- Net profit increased +119.42% QoQ, helped by a 4.15 percentage-point fall in the tax rate and other income equal to 13.82% of pre-tax profit.
Price around the results
Revenue doubled, but operating leverage was limited
Consolidated revenue rose +114.83% QoQ to Rs 255.02 cr, while operating profit grew +105.22% to Rs 48.76 cr. Expenses increased +117.23%, faster than revenue, which pulled operating margin down by 0.89 percentage points to 19.12%. This points to a sharp sequential scale-up without a matching improvement in cost absorption.
Lower tax and other income lifted reported profit
The tax rate fell by 4.15 percentage points to 19.79%, supporting the +119.42% QoQ increase in net profit. Other income contributed 13.82% of pre-tax profit, making it a meaningful part of the quarter's earnings mix. Interest expense also rose +81.62% QoQ, adding pressure below operating profit.
Margin remains above peers, but direction softened
Operating margin declined from 20.01% in Q1FY27 to 19.12% in Q2FY27, so the sequential direction was weaker even as the business expanded. The margin was 6.69 percentage points above the 12.43% median for the 73 Industrials companies that had reported the quarter.
Expansion spending and order timing shape the next phase
Management said Rs 181.3 million had been earmarked for capex in Electric Heating Solutions and Specialised Cables, with Rs 175.2 million still remaining for planned expansion as of 30 September 2026. The company attributed the decline in Specialised Cables revenue to the timing of export order execution. Management also said bulk despatches of laboratory furnaces were planned to start from Q3FY27.
Results were filed after market close
The consolidated results were filed after market close, so there is no market reaction to report yet. The stock's usual response after results cannot be assessed from the information available here.
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 | ₹255 cr | ₹119 cr | +114.83% |
| Other income | ₹6 cr | ₹3 cr | +116.55% |
| Expenses | ₹206 cr | ₹95 cr | +117.23% |
| Operating profit | ₹49 cr | ₹24 cr | +105.22% |
| Operating margin (%) | 19.12% | 20.01% | — |
| Interest | ₹2 cr | ₹1 cr | +81.62% |
| Depreciation | ₹8 cr | ₹4 cr | +105.97% |
| Profit before tax | ₹45 cr | ₹21 cr | +108.09% |
| Tax | ₹9 cr | ₹5 cr | +72.07% |
| Net profit | ₹36 cr | ₹16 cr | +119.42% |
| EPS (₹) | ₹4.14 | ₹1.88 | +120.21% |
Operating margin of 19.12% compares with a Industrials sector median of 12.43% across 73 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.
Planned next quarter
- Bulk despatches of laboratory furnaces are planned to start from Q3 FY27.
Expansion
- The company has earmarked ₹181.3 million for capex, with ₹175.2 million remaining for planned expansion as of 30 September 2026.
Problems & risks
- Specialised Cables revenue decline was attributed to the timing of export order execution.
What to watch
- Whether operating margin holds above 19.12% after the sequential decline.
- Progress against the Rs 175.2 million remaining planned expansion spend.
- Whether bulk laboratory-furnace despatches begin in Q3FY27 and export-order timing improves for Specialised Cables.