Profit jumps as Q1 other-income hit reverses, while margin slips
Net profit rose 129.90% qoq despite a 1.88-point operating-margin decline, as Q1's Rs -141.23 cr other-income impact reversed.
Filed 05 Nov 2026, 18:52 IST · after market close · Fujiyama Power Systems Ltd (UTLSOLAR)
Key takeaways
- Consolidated net profit rose 129.90% qoq to Rs 132.86 cr, mainly as Q1's Rs -141.23 cr other-income impact reversed.
- Operating margin narrowed 1.88 percentage points qoq to 17.06% as expenses fell 0.64% against a 2.89% revenue decline.
- At 17.06%, Fujiyama's operating margin was 5.56 percentage points above the 11.5% median of 178 Industrials peers.
Price around the results
Profit recovery was driven by the other-income swing
Consolidated net profit rose 129.90% qoq even though operating profit declined 12.52%. The main distortion was other income: Q1 had Rs -141.23 cr, versus Rs 2.06 cr in Q2, lifting profit before tax to Rs 180.13 cr. Other income contributed only 1.14% of Q2 pre-tax profit, so it was not a major quality concern in the reported quarter.
Lower revenue did not translate into proportional cost relief
Revenue declined 2.89% qoq, while expenses fell only 0.64%, narrowing operating margin by 1.88 percentage points. Interest expense rose 58.62% to Rs 17.29 cr and depreciation increased 10.07% to Rs 27.54 cr, adding pressure below operating profit. The tax rate also increased 0.67 percentage points, so the higher net profit was not aided by a lower tax rate.
Margin stayed above the Industrials peer median
Fujiyama's 17.06% operating margin was 5.56 percentage points above the 11.5% median among 178 Industrials companies that had reported the quarter. Sequentially, however, margin moved down from 18.94%, making the direction less favourable even as reported profit improved. The available comparison is sequential because no year-on-year block is provided.
The filing came after market close
The consolidated results were filed after market close on 5 November 2026 at 18:52 IST. There is no same-day post-results market reaction to assess from this release.
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 | ₹1,307 cr | ₹1,346 cr | -2.89% |
| Other income | ₹2 cr | ₹-141 cr | — |
| Expenses | ₹1,084 cr | ₹1,091 cr | -0.64% |
| Operating profit | ₹223 cr | ₹255 cr | -12.52% |
| Operating margin (%) | 17.06% | 18.94% | — |
| Interest | ₹17 cr | ₹11 cr | +58.62% |
| Depreciation | ₹28 cr | ₹25 cr | +10.07% |
| Profit before tax | ₹180 cr | ₹78 cr | +131.95% |
| Tax | ₹47 cr | ₹20 cr | +137.95% |
| Net profit | ₹133 cr | ₹58 cr | +129.90% |
| EPS (₹) | ₹4.33 | ₹1.88 | +130.32% |
Operating margin of 17.06% 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 | -8.84% | -10.85% |
Volume on the results session was 2.16× its 20-day average.
What to watch
- Whether operating margin moves back above 17.06% after the 1.88-percentage-point qoq decline.
- Whether interest moderates from Rs 17.29 cr after rising 58.62% qoq.
- Whether revenue recovers from the 2.89% qoq decline from Rs 1,306.82 cr.