Tube Investments lifts margin as revenue growth outpaces costs
The consolidated margin rebound came with a lower tax rate, while other income remained a material part of pre-tax profit.
Filed 05 Nov 2026, 13:27 IST · Tube Investments of India Ltd (TIINDIA)
Key takeaways
- Consolidated revenue grew 17.94% QoQ as expenses rose 16.39%, lifting operating margin by 1.19 percentage points.
- Net profit increased 43.07% QoQ, helped by a 1.53-percentage-point fall in the tax rate, while other income contributed 17.43% of pre-tax profit.
- Operating margin improved to 10.01%, but remained 1.55 percentage points below the 11.56% median of 262 reported Consumer Discretionary peers.
Price around the results
Q2 revenue growth translated into a margin rebound
Tube Investments’ consolidated revenue rose 17.94% QoQ, while expenses increased 16.39%, allowing operating margin to expand by 1.19 percentage points to 10.01%. Year on year, revenue grew 32.73% and expenses 32.50%, producing only a 0.15-percentage-point margin improvement. This points to better operating leverage sequentially, but limited margin expansion over the year-ago quarter.
Profit growth was aided by tax and other income
Net profit rose 43.07% QoQ, ahead of the 33.91% increase in operating profit, as the tax rate fell 1.53 percentage points to 34.67%. Other income accounted for 17.43% of pre-tax profit, so reported earnings were not generated solely by operations. Interest expense also rose 17.90% QoQ and 36.15% YoY, adding to the pressure below operating profit.
Margin recovered from Q1 but remains below peers
Operating margin improved from 8.82% in Q1FY27 to 10.01% in Q2FY27, reversing the decline seen across the previous two quarters from 10.08% in Q3FY26 to 9.38% in Q4FY26 and 8.82% in Q1FY27. The company’s margin was 1.55 percentage points below the 11.56% median among 262 Consumer Discretionary peers that had reported. The stock’s post-results reaction is not covered here because the results have not yet received a market response.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹7,330 cr | ₹6,215 cr | +17.94% | +32.73% |
| Other income | ₹112 cr | ₹112 cr | +0.31% | +21.15% |
| Expenses | ₹6,596 cr | ₹5,667 cr | +16.39% | +32.50% |
| Operating profit | ₹734 cr | ₹548 cr | +33.91% | +34.82% |
| Operating margin (%) | 10.01% | 8.82% | — | — |
| Interest | ₹19 cr | ₹16 cr | +17.90% | +36.15% |
| Depreciation | ₹183 cr | ₹183 cr | +0.14% | +11.70% |
| Profit before tax | ₹644 cr | ₹461 cr | +39.72% | +40.28% |
| Tax | ₹223 cr | ₹167 cr | +33.82% | +42.27% |
| Net profit | ₹421 cr | ₹294 cr | +43.07% | +39.24% |
| EPS (₹) | ₹12.87 | ₹8.71 | +47.76% | +33.37% |
Operating margin of 10.01% compares with a Consumer Discretionary sector median of 11.56% across 262 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 10.01% after the Q2FY27 rebound.
- Whether other income remains close to 17.43% of pre-tax profit.
- Whether interest expense growth moderates after rising 17.90% QoQ.