Walchandnagar’s profit falls 61% QoQ despite wider operating margin
Revenue grew faster than expenses, but lower other income reduced profit before tax to Rs 0.46 cr.
Filed 02 Nov 2026, 20:56 IST · after market close · Walchandnagar Industries Ltd (WALCHANNAG)
Key takeaways
- Standalone revenue rose +2.97% QoQ while operating margin widened 1.32 percentage points to 9.40%.
- Net profit fell -61.02% QoQ to Rs 0.46 cr as other income declined -33.72%.
- The 9.40% operating margin was 2.13 percentage points below the 11.53% median for 88 Industrials peers.
Price around the results
Operating improvement did not reach net profit
Walchandnagar Industries reported standalone revenue growth of +2.97% QoQ, while expenses rose +1.50%; operating profit consequently increased +19.75%. Profit before tax and net profit nevertheless declined -61.02% to Rs 0.46 cr, as other income fell -33.72% and interest declined only -2.30%.
Margin widened, but profit quality was weak
Costs grew slower than revenue, lifting operating margin by 1.32 percentage points to 9.40%. Other income accounted for +1004.35% of pre-tax profit, highlighting how dependent reported earnings were on non-operating income in the quarter. The tax rate was 0.00%, so there was no tax charge to reduce net profit.
Margin remained below the Industrials peer median
The company’s 9.40% operating margin was 2.13 percentage points below the 11.53% median among 88 Industrials peers that had reported the quarter. Sequentially, margin improved from 8.08% in Q1FY27, but the available trend covers only the immediately preceding quarter.
Results were filed after market close
The standalone Q2FY27 results were filed after market close on 2 November 2026. The stock reaction is therefore not yet part of this results assessment.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹94 cr | ₹91 cr | +2.97% |
| Other income | ₹5 cr | ₹7 cr | -33.72% |
| Expenses | ₹85 cr | ₹83 cr | +1.50% |
| Operating profit | ₹9 cr | ₹7 cr | +19.75% |
| Operating margin (%) | 9.40% | 8.08% | — |
| Interest | ₹10 cr | ₹10 cr | -2.30% |
| Depreciation | ₹3 cr | ₹3 cr | +1.60% |
| Profit before tax | ₹0 cr | ₹1 cr | -61.02% |
| Tax | ₹0 cr | ₹0 cr | — |
| Net profit | ₹0 cr | ₹1 cr | -61.02% |
| EPS (₹) | ₹0.07 | ₹0.17 | -58.82% |
Operating margin of 9.40% compares with a Industrials sector median of 11.53% across 88 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 9.40% after its 1.32-percentage-point QoQ expansion.
- Whether other income remains a material profit contributor after accounting for +1004.35% of Q2FY27 pre-tax profit.
- Whether interest declines from Rs 9.78 cr after falling -2.30% QoQ.