Expenses outpaced revenue, cutting Veedol's operating margin by 6.87 points
Consolidated revenue rose +6.68% QoQ, but expenses increased +15.42%, while other income contributed 19.46% of profit before tax.
Filed 05 Nov 2026, 19:11 IST · after market close · Veedol Corporation Ltd (VEEDOL)
Key takeaways
- Expenses grew +15.42% QoQ against +6.68% revenue growth, cutting consolidated operating margin by 6.87 percentage points.
- Other income made up 19.46% of consolidated profit before tax, while the tax rate fell 0.92 percentage points.
- Veedol's 9.25% operating margin trailed the 15.20% Energy-peer median by 5.95 percentage points across 24 reported peers.
Price around the results
Revenue growth failed to absorb the cost increase
Consolidated revenue growth of +6.68% QoQ did not translate into operating leverage because expenses grew +15.42%. Operating profit fell -38.78%, driving a 6.87-percentage-point contraction in operating margin to 9.25%.
Other income cushioned a weaker operating result
Other income contributed 19.46% of profit before tax, giving reported profit a meaningful non-operating contribution. The 0.92-percentage-point fall in the tax rate partly cushioned the decline, while interest expense rose +56.82%.
Margin ranked fifth from bottom among 24 Energy peers
Veedol's 9.25% operating margin was 5.95 percentage points below the 15.20% median for 24 Energy peers that reported the same quarter. The sequential direction was negative, with margin down from 16.12% in Q1FY27.
Results were filed after market close
The consolidated results were filed after market close, so there is no market reaction to assess yet. The next response will need to be read against the sharp sequential deterioration in operating margin.
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 | ₹649 cr | ₹609 cr | +6.68% |
| Other income | ₹12 cr | ₹12 cr | +1.73% |
| Expenses | ₹589 cr | ₹510 cr | +15.42% |
| Operating profit | ₹60 cr | ₹98 cr | -38.78% |
| Operating margin (%) | 9.25% | 16.12% | — |
| Interest | ₹1 cr | ₹0 cr | +56.82% |
| Depreciation | ₹8 cr | ₹8 cr | +4.36% |
| Profit before tax | ₹63 cr | ₹102 cr | -37.76% |
| Tax | ₹14 cr | ₹24 cr | -40.22% |
| Net profit | ₹49 cr | ₹78 cr | -37.01% |
| EPS (₹) | ₹28.88 | ₹45.85 | -37.01% |
Operating margin of 9.25% compares with a Energy sector median of 15.20% across 24 peers that have reported Q2FY27.
What to watch
- Whether operating margin recovers from 9.25% after the 6.87-percentage-point QoQ decline.
- Whether expense growth moves below the current +15.42% QoQ pace relative to +6.68% revenue growth.
- Whether other income's 19.46% share of profit before tax declines.