Expenses outpaced revenue, sending Worth Peripherals' margin lower
Revenue rose 8.18% QoQ, but higher costs, depreciation and tax reduced net profit by 61.98%.
Filed 30 Oct 2026, 14:10 IST · Worth Peripherals Ltd (WORTHPERI)
Key takeaways
- Consolidated revenue grew 8.18% QoQ, but expenses rose 13.81%, narrowing operating margin by 4.60 percentage points to 7.20%.
- Net profit fell 61.98% QoQ to Rs 2.00 cr as the tax rate rose 13.37 percentage points to 47.57%.
- Worth Peripherals' 7.20% operating margin was 5.23 percentage points below the 12.43% median for 75 reported Industrials peers.
Price around the results
Revenue growth did not convert into profit
Consolidated revenue rose 8.18% QoQ to Rs 88.71 cr, but the 13.81% increase in expenses absorbed the growth. Operating profit consequently fell 33.99% to Rs 6.39 cr, while net profit declined 61.98% to Rs 2.00 cr.
Cost growth and depreciation drove the margin squeeze
Depreciation also increased 55.15% QoQ to Rs 2.56 cr, adding pressure below the operating-profit line. Interest expense fell 11.76%, so financing costs did not drive the profit decline.
Margin trails the Industrials peer median
Worth Peripherals' 7.20% operating margin was below the 12.43% median among 75 Industrials companies that had reported the quarter, placing it 11th from the bottom. The available quarterly trend shows a sharp step down from Q1FY27's 11.80% margin, alongside the decline in net profit from Rs 5.26 cr to Rs 2.00 cr.
Shares fell as trading volume rose
The stock fell 0.90% on the results date, with the session's volume at 4.88 times its average. The reaction was recorded during market hours, as the results were filed at 14:10 IST.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹89 cr | ₹82 cr | +8.18% |
| Other income | ₹0 cr | ₹0 cr | -6.45% |
| Expenses | ₹82 cr | ₹72 cr | +13.81% |
| Operating profit | ₹6 cr | ₹10 cr | -33.99% |
| Operating margin (%) | 7.20% | 11.80% | — |
| Interest | ₹0 cr | ₹0 cr | -11.76% |
| Depreciation | ₹3 cr | ₹2 cr | +55.15% |
| Profit before tax | ₹4 cr | ₹8 cr | -52.19% |
| Tax | ₹2 cr | ₹3 cr | -33.33% |
| Net profit | ₹2 cr | ₹5 cr | -61.98% |
| EPS (₹) | ₹0.72 | ₹2.65 | -72.83% |
Operating margin of 7.20% compares with a Industrials sector median of 12.43% across 75 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -0.90% | -1.41% |
Volume on the results session was 4.88× its 20-day average.
What to watch
- Whether operating margin recovers from 7.20% after expenses grew 13.81% QoQ.
- Whether depreciation remains above Rs 2.56 cr in the next quarter.
- Whether the tax rate moves below 47.57%.