Veto revenue jumps, but faster costs push margin lower again
Consolidated operating margin fell to 10.29% as expenses outpaced revenue growth, while a lower tax rate supported a +38.12% rise in net profit.
Filed 06 Nov 2026, 16:26 IST · after market close · Veto Switchgears & Cables Ltd (VETO)
Key takeaways
- Consolidated revenue rose +32.22% sequentially to Rs 118.15 cr, but operating profit grew slower at +28.81%.
- Operating margin narrowed 0.28 percentage points to 10.29% because expenses grew +32.65%, faster than revenue.
- Net profit increased +38.12% to Rs 8.08 cr, helped by a 1.14-percentage-point fall in the tax rate and a 50.00% decline in interest.
Price around the results
Revenue momentum did not fully reach operating profit
The consolidated business posted a +32.22% sequential increase in revenue to Rs 118.15 cr, while operating profit rose +28.81% to Rs 12.16 cr. That gap indicates that incremental revenue converted into operating profit at a lower rate than in Q1FY27. Net profit grew faster at +38.12% to Rs 8.08 cr as financing and tax costs eased.
Faster expenses narrowed the margin
Interest fell 50.00% sequentially, while the tax rate declined 1.14 percentage points to 27.68%, supporting profit after operations. Other income contributed 5.46% of pre-tax profit, so it was not the main source of earnings.
Margin remains below the consumer discretionary median
The latest listed trend shows operating margin declining from 12.15% in Q4FY25 to 10.57% in Q1FY27 and 10.29% in Q2FY27. Veto's margin was 1.13 percentage points below the 11.42% median among 287 Consumer Discretionary peers that had reported the quarter.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹118 cr | ₹89 cr | +32.22% |
| Other income | ₹1 cr | ₹1 cr | +15.09% |
| Expenses | ₹106 cr | ₹80 cr | +32.65% |
| Operating profit | ₹12 cr | ₹9 cr | +28.81% |
| Operating margin (%) | 10.29% | 10.57% | — |
| Interest | ₹0 cr | ₹1 cr | -50.00% |
| Depreciation | ₹1 cr | ₹1 cr | +20.79% |
| Profit before tax | ₹11 cr | ₹8 cr | +35.89% |
| Tax | ₹3 cr | ₹2 cr | +30.38% |
| Net profit | ₹8 cr | ₹6 cr | +38.12% |
| EPS (₹) | ₹4.39 | ₹3.10 | +41.61% |
Operating margin of 10.29% compares with a Consumer Discretionary sector median of 11.42% across 287 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +9.06% | +9.00% |
Volume on the results session was 2.10× its 20-day average.
What to watch
- Whether operating margin recovers from 10.29% after the latest 0.28-percentage-point sequential decline.
- Whether expense growth moves below the latest +32.65% sequential rate and the +32.22% revenue-growth rate.
- Whether the tax rate remains near 27.68% and interest remains below Rs 0.37 cr.