Revenue grew 22.78% QoQ, but faster costs deepened Windsor's loss
Raw material and employee costs compressed margins, while the company pointed to a larger CNC order book and expanded Rajkot capacity.
Filed 03 Nov 2026, 21:04 IST · after market close · Windsor Machines Ltd (WINDMACHIN)
Key takeaways
- Consolidated revenue rose 22.78% QoQ, but expenses grew 27.10%, pulling operating margin down 3.38 percentage points to 0.86%.
- The consolidated net loss widened to Rs 5.27 cr from Rs 0.91 cr as lower interest costs did not offset weaker operating profit and higher depreciation.
- Windsor's 0.86% operating margin was 10.17 percentage points below the 11.03% median for 108 Industrials peers that have reported.
Price around the results
Higher revenue did not translate into operating profit
Consolidated revenue increased 22.78% QoQ, but expenses rose faster at 27.10%, causing operating margin to contract 3.38 percentage points to 0.86%. Operating profit consequently fell 74.96% QoQ to Rs 1.58 cr despite the higher revenue base. The results were filed after market close, so there is no post-results market reaction to assess.
Cost pressure kept the quarter loss-making
Management said elevated raw material costs and higher employee expenses reduced EBITDA margins, with annual increments and senior-level hiring lifting the wage bill. Interest expense fell 36.29% QoQ, but depreciation rose 14.96% to Rs 5.84 cr, leaving the company with a Rs 4.91 cr pre-tax loss. Other income represented -31.98% of pre-tax profit because PBT was negative, and the Rs 0.35 cr tax charge provided no relief; the reported tax rate fell 56.39 percentage points to -7.19%.
Margin trails peers after a sharp sequential decline
Windsor's 0.86% operating margin was 10.17 percentage points below the 11.03% median among 108 Industrials peers that have reported the quarter, placing it third from the bottom. Sequentially, margin fell from 4.24% in Q1FY27, marking a material deterioration even as revenue grew. There is no year-on-year comparison in the reported data.
Rajkot expansion and CNC orders add operating context
Management said underlying product demand remained strong and that the order book provided revenue visibility. The presentation said the fully operational Rajkot plant has lifted annual capacity from 1,500 to 3,600 machines and can be expanded to 8,400 machines. Management also said the CNC division faced a global shortage of controlling units, even as its order book grew significantly; it reported government tender orders worth Rs 59 cr for 38 machines in October 2026. The company said its February 2026 acquisition of Unitech Workholding Systems enables bundled machine, fixture and tooling solutions.
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 | ₹183 cr | ₹149 cr | +22.78% |
| Other income | ₹2 cr | ₹0 cr | +227.08% |
| Expenses | ₹181 cr | ₹143 cr | +27.10% |
| Operating profit | ₹2 cr | ₹6 cr | -74.96% |
| Operating margin (%) | 0.86% | 4.24% | — |
| Interest | ₹2 cr | ₹4 cr | -36.29% |
| Depreciation | ₹6 cr | ₹5 cr | +14.96% |
| Profit before tax | ₹-5 cr | ₹-2 cr | -174.30% |
| Tax | ₹0 cr | ₹-1 cr | — |
| Net profit | ₹-5 cr | ₹-1 cr | -479.12% |
| EPS (₹) | ₹-0.51 | ₹-0.10 | -410.00% |
Operating margin of 0.86% compares with a Industrials sector median of 11.03% across 108 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- The CNC order book grew significantly during the quarter.
Guidance & outlook
- The company said underlying product demand remained strong, supported by an order book providing revenue visibility.
Expansion
- The new Rajkot plant has expanded current capacity from 1,500 to 3,600 machines annually and is expandable to 8,400.
- The new Rajkot plant is fully operational.
- Windsor acquired a 100% stake in Unitech Workholding Systems in February 2026.
New orders
- The CNC division secured government tender orders worth ₹59 crore for 38 machines in October 2026.
New initiatives
- The Unitech acquisition enables bundled machine, fixture and tooling solutions.
Problems & risks
- The CNC division faced challenges from the ongoing global shortage of controlling units.
- EBITDA margins contracted because of elevated raw material costs and higher employee expenses.
- The wage bill increased because of annual increments and recent senior-level hiring.
What to watch
- Whether operating margin recovers from 0.86% after the 3.38-percentage-point QoQ decline.
- Whether the CNC division converts the Rs 59 cr government tender orders for 38 machines.
- Whether raw material and employee-cost pressure eases from the level that management said had reduced EBITDA margins.