Lower cost growth lifts Titagarh's operating margin to 13.49%
Consolidated net profit rose 20.20% QoQ, helped by a lower tax rate; the results were filed after market close.
Filed 10 Nov 2026, 20:47 IST · after market close · Titagarh Rail Systems Ltd (TITAGARH)
Key takeaways
- Consolidated revenue rose +3.59% QoQ while operating margin improved by 1.09 percentage points to 13.49%.
- Consolidated net profit increased +20.20% QoQ, helped by a 2.85-percentage-point decline in the tax rate.
- Titagarh's operating margin was 1.95 percentage points above the 11.54% median for 208 reported Industrials peers.
Price around the results
Revenue growth translated into operating leverage
Titagarh Rail Systems' consolidated revenue grew +3.59% QoQ, while expenses increased only +2.30%. The slower cost growth lifted operating profit by +12.70% and widened operating margin by 1.09 percentage points to 13.49%.
Lower tax rate supported profit conversion
Profit before tax rose +15.70% QoQ, while net profit grew faster at +20.20% as the tax rate fell to 22.94% from 25.79%. Interest expense increased +5.36%, and other income accounted for 7.99% of profit before tax, so the quarter's profit also included a modest non-operating contribution.
Margin moved higher and stayed above the sector median
Operating margin improved from 12.40% in Q1FY27 to 13.49% in Q2FY27, reversing the sequential pressure seen in the preceding quarter. The Q2FY27 margin was 1.95 percentage points above the 11.54% median among 208 Industrials peers that had reported.
Stock opened higher after the results
The stock rose +4.04% on 11 November 2026 after the results, including a +2.19% opening gap. Trading volume was 2.77 times the reference level.
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 | ₹793 cr | ₹765 cr | +3.59% |
| Other income | ₹7 cr | ₹6 cr | +8.09% |
| Expenses | ₹686 cr | ₹670 cr | +2.30% |
| Operating profit | ₹107 cr | ₹95 cr | +12.70% |
| Operating margin (%) | 13.49% | 12.40% | — |
| Interest | ₹16 cr | ₹15 cr | +5.36% |
| Depreciation | ₹16 cr | ₹15 cr | +4.01% |
| Profit before tax | ₹82 cr | ₹71 cr | +15.70% |
| Tax | ₹19 cr | ₹18 cr | +2.90% |
| Net profit | ₹63 cr | ₹53 cr | +20.20% |
| EPS (₹) | ₹4.69 | ₹3.91 | +19.95% |
Operating margin of 13.49% compares with a Industrials sector median of 11.54% across 208 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +4.04% | +3.20% |
Volume on the results session was 2.77× its 20-day average.
What to watch
- Whether operating margin holds above 13.49% in the next reported quarter.
- Whether the tax rate stays close to 22.94% after falling by 2.85 percentage points QoQ.
- Whether interest expense growth moderates from +5.36% QoQ.