Vakrangee profit rises 20.80% as operating margin slips
Revenue grew 10.30% sequentially, but faster expense growth narrowed margin; other income made up 55.22% of pre-tax profit.
Filed 28 Oct 2026, 15:45 IST · after market close · Vakrangee Ltd (VAKRANGEE)
Key takeaways
- Consolidated net profit rose 20.80% sequentially to Rs 2.73 cr, helped by a 1.79 percentage-point fall in the tax rate.
- Revenue grew 10.30% sequentially, but expenses grew 10.86%, pulling operating margin down 0.44 percentage points to 11.43%.
- Operating margin was 6.36 percentage points below the 17.79% median of 31 reported IT peers.
Price around the results
Revenue growth did not translate into wider margins
Vakrangee’s consolidated revenue rose 10.30% sequentially to Rs 61.68 cr, while operating profit grew only 6.17% to Rs 7.05 cr. Expenses increased 10.86%, faster than revenue, so operating margin narrowed 0.44 percentage points to 11.43%. This was the first sequential comparison available in the reported trend.
Reported profit got support below the operating line
Net profit rose 20.80% sequentially, faster than operating profit, as the tax rate fell 1.79 percentage points to 36.69%. Other income rose 21.43% to Rs 2.38 cr and accounted for 55.22% of pre-tax profit, making the reported profit less dependent on operations. Interest also increased 28.21% to Rs 0.50 cr.
Margin trailed most reported IT peers
Vakrangee’s 11.43% operating margin was 6.36 percentage points below the 17.79% median for 31 IT peers that had reported the quarter. It ranked fourth from the bottom on this measure, putting the sequential margin decline in a weak sector context.
Results were filed after market close
The consolidated results were filed after market close on 28 October 2026. The stock’s immediate response is therefore not part of this reading.
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 | ₹62 cr | ₹56 cr | +10.30% |
| Other income | ₹2 cr | ₹2 cr | +21.43% |
| Expenses | ₹55 cr | ₹49 cr | +10.86% |
| Operating profit | ₹7 cr | ₹7 cr | +6.17% |
| Operating margin (%) | 11.43% | 11.87% | — |
| Interest | ₹1 cr | ₹0 cr | +28.21% |
| Depreciation | ₹5 cr | ₹5 cr | +1.98% |
| Profit before tax | ₹4 cr | ₹4 cr | +17.44% |
| Tax | ₹2 cr | ₹1 cr | +12.06% |
| Net profit | ₹3 cr | ₹2 cr | +20.80% |
| EPS (₹) | ₹0.03 | ₹0.02 | +50.00% |
Operating margin of 11.43% compares with a Information Technology sector median of 17.79% across 31 peers that have reported Q2FY27.
What to watch
- Whether operating margin recovers from 11.43% after the 0.44 percentage-point sequential decline.
- Whether expense growth falls below the current 10.86% sequential pace relative to revenue growth of 10.30%.
- Whether other income remains a large contributor after accounting for 55.22% of pre-tax profit.