Revenue grew 15.24%, but higher tax pulled net profit lower
Operating margin edged up as expenses grew slightly slower than revenue, though interest costs rose 38.55% and the tax rate increased.
Filed 06 Nov 2026, 17:52 IST · after market close · Trejhara Solutions Ltd (TREJHARA)
Key takeaways
- Consolidated revenue rose +15.24% QoQ while expenses grew +14.96%, lifting operating margin by 0.24 percentage points to 10.08%.
- Net profit fell -3.76% QoQ as interest expense increased +38.55% and the tax rate rose 8.08 percentage points.
- Operating margin at 10.08% was 6.27 percentage points below the 16.35% median for 71 Information Technology peers that reported.
Price around the results
Revenue growth did not reach net profit
Trejhara's consolidated revenue increased +15.24% QoQ, and operating profit grew +18.02% as expenses rose slightly slower than revenue. That operating improvement was not enough to lift net profit: profit before tax rose only +5.91%, while net profit declined -3.76% to Rs 4.61 cr.
Interest and tax absorbed the operating gain
Interest expense rose +38.55% QoQ, outpacing the increase in operating profit and limiting the conversion of operating growth into pre-tax profit. The tax rate increased by 8.08 percentage points to 19.58%, further reducing net profit. Other income fell -67.90% and contributed 4.54% of pre-tax profit, so it was not a major support to earnings.
Margin improved for a second straight quarter but remains below peers
Operating margin recovered from 3.37% in Q4FY26 to 9.84% in Q1FY27 and 10.08% in Q2FY27. The improvement is sequential, but the current margin remains 6.27 percentage points below the 16.35% Information Technology sector median across 71 reported peers. It is also below the 17.89% margin recorded in Q4FY25.
Results were filed after market close
The results were filed after market close, so there is no current-session stock reaction to assess. After its previous three results, the stock rose each time; the median absolute move was 1.3%, with the recorded moves ranging from 1.3% to 9.99%.
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 | ₹78 cr | ₹68 cr | +15.24% |
| Other income | ₹0 cr | ₹1 cr | -67.90% |
| Expenses | ₹70 cr | ₹61 cr | +14.96% |
| Operating profit | ₹8 cr | ₹7 cr | +18.02% |
| Operating margin (%) | 10.08% | 9.84% | — |
| Interest | ₹1 cr | ₹1 cr | +38.55% |
| Depreciation | ₹1 cr | ₹1 cr | +1.64% |
| Profit before tax | ₹6 cr | ₹5 cr | +5.91% |
| Tax | ₹1 cr | ₹1 cr | +80.65% |
| Net profit | ₹5 cr | ₹5 cr | -3.76% |
| EPS (₹) | ₹1.47 | ₹2.00 | -26.50% |
Operating margin of 10.08% compares with a Information Technology sector median of 16.35% across 71 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 10.08% after its improvement from 3.37% in Q4FY26.
- Whether interest expense growth eases from +38.55% QoQ.
- Whether the tax rate moves below 19.58% and allows net profit to recover from Rs 4.61 cr.