Net profit rose 121.77% QoQ as other income drove PBT
Revenue grew 14.68%, faster than expenses at 13.35%, lifting operating margin by 1.07 percentage points.
Filed 05 Nov 2026, 14:52 IST · Texmaco Rail & Engineering Ltd (TEXRAIL)
Key takeaways
- Consolidated net profit rose 121.77% QoQ, helped by other income contributing 70.83% of profit before tax.
- Revenue grew 14.68% QoQ against expense growth of 13.35%, lifting operating margin by 1.07 percentage points to 8.60%.
- The stock fell 3.70% on November 5 despite opening 1.20% higher, with trading volume at 2.56 times normal.
Price around the results
Revenue growth translated into a modest operating improvement
Texmaco's consolidated Q2FY27 revenue rose 14.68% QoQ to Rs 867.75 cr, while operating profit increased 30.95% to Rs 74.64 cr. Expenses grew 13.35%, slower than revenue, which lifted operating margin from 7.53% to 8.60%. The margin was 2.90 percentage points below the 11.50% median for 178 Industrials peers that had reported.
Other income carried most of the pre-tax profit increase
Profit before tax rose 196.66% QoQ to Rs 126.08 cr, but other income increased 289.62% to Rs 89.30 cr and made up 70.83% of PBT. This makes the net profit increase less reflective of operating earnings alone. The tax rate moved from a -17.81% tax benefit to an 11.92% tax charge, a 29.73 percentage-point change that did not flatter profit; interest declined 0.84% while depreciation rose 5.27%.
Operating margin improved from the previous quarter, with no YoY comparison
Net profit rose 121.77% QoQ to Rs 111.04 cr and EPS increased 122.76% to Rs 2.74, alongside the operating margin recovery to 8.60%. The available quarter trend shows an improvement from Q1FY27's 7.53% margin, but does not establish a longer multi-quarter direction.
The market reaction was negative despite an early gain
The stock opened 1.20% higher but ended 3.70% lower on November 5, with a relative return of -6.10%. Volume was 2.56 times normal, indicating heavier trading around the results.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹868 cr | ₹757 cr | +14.68% |
| Other income | ₹89 cr | ₹23 cr | +289.62% |
| Expenses | ₹793 cr | ₹700 cr | +13.35% |
| Operating profit | ₹75 cr | ₹57 cr | +30.95% |
| Operating margin (%) | 8.60% | 7.53% | — |
| Interest | ₹25 cr | ₹25 cr | -0.84% |
| Depreciation | ₹13 cr | ₹12 cr | +5.27% |
| Profit before tax | ₹126 cr | ₹43 cr | +196.66% |
| Tax | ₹15 cr | ₹-8 cr | — |
| Net profit | ₹111 cr | ₹50 cr | +121.77% |
| EPS (₹) | ₹2.74 | ₹1.23 | +122.76% |
Operating margin of 8.60% compares with a Industrials sector median of 11.50% across 178 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -3.70% | -6.10% |
Volume on the results session was 2.56× its 20-day average.
What to watch
- Whether operating margin holds above 8.60% after the Q2FY27 improvement.
- Whether expense growth remains below the 14.68% revenue growth rate seen this quarter.
- Whether other income's 70.83% share of PBT declines in the next quarter.