Thejo's margin widens as revenue growth outpaces expenses
Consolidated net profit rose +17.40% QoQ even as the tax rate increased 2.27 percentage points.
Filed 11 Nov 2026, 14:30 IST · Thejo Engineering Ltd (THEJO)
Key takeaways
- Revenue grew +11.67% QoQ while expenses rose +10.23%, lifting operating margin by 1.10 percentage points to 15.33%.
- Net profit increased +17.40% QoQ even as the tax rate rose 2.27 percentage points to 29.30%.
- The 15.33% operating margin was 3.79 percentage points above the 11.54% median for 208 reported Industrials peers.
Price around the results
Revenue momentum improved in the second quarter
Thejo Engineering's consolidated revenue rose to Rs 198.34 cr, up +11.67% QoQ, while operating profit grew +20.34% to Rs 30.41 cr. Revenue growth exceeded expense growth, which kept more of the incremental sales in operating profit. With no YoY comparison available, the sequential improvement is the clearest measure of current momentum.
Lower cost growth widened the operating margin
Expenses increased +10.23% QoQ, slower than revenue, lifting operating margin by 1.10 percentage points to 15.33%. Interest declined -4.90% and depreciation fell -8.97%, providing additional support below the operating line. Other income contributed 4.82% of pre-tax profit, so reported earnings were mainly driven by operations rather than non-operating income.
Profit rose despite a higher tax rate
Profit before tax increased +21.17% QoQ, while net profit grew +17.40% to Rs 17.88 cr. The tax rate rose from 27.03% to 29.30%, limiting the conversion of pre-tax growth into net profit growth. The quarter's 15.33% operating margin stood 3.79 percentage points above the 11.54% median among 208 Industrials peers that had reported.
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 | ₹198 cr | ₹178 cr | +11.67% |
| Other income | ₹1 cr | ₹2 cr | -51.00% |
| Expenses | ₹168 cr | ₹152 cr | +10.23% |
| Operating profit | ₹30 cr | ₹25 cr | +20.34% |
| Operating margin (%) | 15.33% | 14.23% | — |
| Interest | ₹1 cr | ₹1 cr | -4.90% |
| Depreciation | ₹5 cr | ₹5 cr | -8.97% |
| Profit before tax | ₹25 cr | ₹21 cr | +21.17% |
| Tax | ₹7 cr | ₹6 cr | +31.38% |
| Net profit | ₹18 cr | ₹15 cr | +17.40% |
| EPS (₹) | ₹17.41 | ₹14.90 | +16.85% |
Operating margin of 15.33% compares with a Industrials sector median of 11.54% across 208 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 15.33% in the next quarter.
- Whether expenses continue to grow more slowly than revenue after the +10.23% versus +11.67% QoQ gap.
- Whether the tax rate moves from 29.30% while other income remains a limited 4.82% of pre-tax profit.