Revenue jumped 49.62%, but interest kept profit under pressure
Operating margin recovered 2.54 percentage points QoQ, but higher interest and depreciation pulled pre-tax profit down 48.43%.
Filed 05 Nov 2026, 19:36 IST · after market close · Vikran Engineering Ltd (VIKRAN)
Key takeaways
- Revenue rose +49.62% QoQ as expenses grew +45.48%, lifting operating margin by 2.54 percentage points.
- Net profit fell -31.08% QoQ as interest rose +37.79% and depreciation increased +150.46%.
- Other income was 138.21% of pre-tax profit, while the tax rate fell to 1.79% from 26.52%.
Price around the results
Revenue rebound did not reach pre-tax profit
In consolidated results, revenue increased +49.62% QoQ while expenses grew +45.48%, lifting operating profit by +97.34% and operating margin by 2.54 percentage points. The improvement was absorbed below the operating line: interest rose +37.79% and depreciation increased +150.46%, leaving pre-tax profit down -48.43%. The company filed the results after market close on 5 November 2026.
Low tax and other income supported reported profit
Net profit fell -31.08% QoQ even as the tax rate dropped 24.73 percentage points to 1.79%, so the lower tax charge partly cushioned the decline in pre-tax profit. Other income accounted for 138.21% of pre-tax profit, making reported earnings heavily dependent on non-operating income this quarter.
Margin recovered from Q1 but remained below the sector median
Operating margin improved from 7.97% in Q1FY27 to 10.51% in Q2FY27 after falling from 14.24% in Q4FY26, marking a recovery rather than a continuation of the previous quarter's decline. It was still 0.99 percentage points below the 11.50% median among 178 Industrials peers that had reported.
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 | ₹212 cr | ₹142 cr | +49.62% |
| Other income | ₹4 cr | ₹10 cr | -62.02% |
| Expenses | ₹190 cr | ₹130 cr | +45.48% |
| Operating profit | ₹22 cr | ₹11 cr | +97.34% |
| Operating margin (%) | 10.51% | 7.97% | — |
| Interest | ₹21 cr | ₹15 cr | +37.79% |
| Depreciation | ₹3 cr | ₹1 cr | +150.46% |
| Profit before tax | ₹3 cr | ₹5 cr | -48.43% |
| Tax | ₹0 cr | ₹1 cr | -96.53% |
| Net profit | ₹3 cr | ₹4 cr | -31.08% |
| EPS (₹) | ₹0.11 | ₹0.15 | -26.67% |
Operating margin of 10.51% compares with a Industrials sector median of 11.50% across 178 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 10.51% after the Q1FY27-to-Q2FY27 recovery.
- Whether interest growth moderates from +37.79% QoQ.
- Whether other income remains a large contributor after accounting for 138.21% of Q2FY27 pre-tax profit.