Wendt India's margin narrows as costs outpace revenue growth
Revenue rose 1.73% sequentially, but faster expense growth cut operating margin by 0.83 percentage points and net profit fell 11.17%.
Filed 21 Oct 2026, 18:49 IST · after market close · Wendt India Ltd (WENDT)
Key takeaways
- Consolidated revenue rose 1.73% QoQ, but operating profit fell 3.73% as expenses grew 2.72%.
- Net profit declined 11.17% QoQ despite a 0.98 percentage-point fall in the tax rate, as other income fell 43.05%.
- Wendt India's stock fell 6.91% on 22 October after the after-close filing, with trading volume at 2.37 times normal.
Price around the results
Revenue growth did not translate into operating profit
Consolidated revenue increased to Rs 72.51 cr, up 1.73% QoQ, but operating profit fell 3.73% to Rs 10.59 cr. Expenses grew 2.72%, faster than revenue, pulling operating margin down 0.83 percentage points to 14.60%.
Lower tax rate only partly cushioned the profit decline
Profit before tax fell 12.42% QoQ as operating profit weakened and other income dropped 43.05% to Rs 0.86 cr. Other income still accounted for 10.98% of pre-tax profit, while the tax rate fell 0.98 percentage points to 29.89%; net profit nevertheless declined 11.17% to Rs 5.49 cr.
Margin remained above the Industrials peer median
Wendt India's 14.60% operating margin was 3.57 percentage points above the 11.03% median for the 21 Industrials peers that had reported the quarter. Compared with Q1FY27, however, the margin fell from 15.43%, marking a weaker sequential profitability trend.
The post-results market reaction was negative
The consolidated results were filed after market close on 21 October. The stock fell 6.91% on 22 October and underperformed the market by 6.36 percentage points, while volume reached 2.37 times normal.
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 | ₹73 cr | ₹71 cr | +1.73% |
| Other income | ₹1 cr | ₹2 cr | -43.05% |
| Expenses | ₹62 cr | ₹60 cr | +2.72% |
| Operating profit | ₹11 cr | ₹11 cr | -3.73% |
| Operating margin (%) | 14.60% | 15.43% | — |
| Interest | ₹0 cr | ₹0 cr | — |
| Depreciation | ₹4 cr | ₹4 cr | +1.12% |
| Profit before tax | ₹8 cr | ₹9 cr | -12.42% |
| Tax | ₹2 cr | ₹3 cr | -15.22% |
| Net profit | ₹5 cr | ₹6 cr | -11.17% |
| EPS (₹) | ₹27.45 | ₹30.90 | -11.17% |
Operating margin of 14.60% compares with a Industrials sector median of 11.03% across 21 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -6.91% | -6.36% |
Volume on the results session was 2.37× its 20-day average.
What to watch
- Whether revenue growth can outpace the 2.72% QoQ rise in expenses.
- Whether operating margin recovers from 14.60%.
- Whether other income remains near its 10.98% share of pre-tax profit.