XPRO India margin slips as costs outpace revenue growth
Net profit fell -5.77% QoQ despite a lower tax rate, while other income accounted for 37.95% of pre-tax profit.
Filed 03 Nov 2026, 16:44 IST · after market close · XPRO India Ltd (XPROINDIA)
Key takeaways
- Consolidated revenue grew +1.30% QoQ while expenses rose +2.06%, narrowing operating margin by 0.68 percentage points to 8.40%.
- Net profit fell -5.77% QoQ despite a 2.77 percentage-point drop in the tax rate, while other income supplied 37.95% of pre-tax profit.
- XPRO India's 8.40% operating margin was 2.63 percentage points below the 11.03% median for 108 reported Industrials peers.
Price around the results
Costs outpaced revenue in Q2FY27
Consolidated revenue increased +1.30% QoQ, but expenses grew +2.06%, causing operating profit to decline -6.25%. The cost growth outpaced revenue growth, narrowing operating margin by 0.68 percentage points from Q1FY27.
Lower tax softened the profit decline
Profit before tax declined -9.52% QoQ, while net profit fell a smaller -5.77% as the tax rate dropped by 2.77 percentage points to 31.25%. Other income represented 37.95% of pre-tax profit, making reported profit less dependent on operating earnings alone.
Margin remains below the Industrials peer median
XPRO India's 8.40% operating margin was 2.63 percentage points below the 11.03% median among 108 Industrials companies that had reported the quarter. The available trend shows a sequential decline from 9.08% in Q1FY27 to 8.40% in Q2FY27, but does not establish a longer run of deterioration.
Results were filed after market close
The company filed these consolidated results after market close on 3 November 2026. The post-results stock reaction is therefore not assessed here.
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 | ₹177 cr | ₹174 cr | +1.30% |
| Other income | ₹4 cr | ₹4 cr | -0.50% |
| Expenses | ₹162 cr | ₹159 cr | +2.06% |
| Operating profit | ₹15 cr | ₹16 cr | -6.25% |
| Operating margin (%) | 8.40% | 9.08% | — |
| Interest | ₹3 cr | ₹3 cr | +0.63% |
| Depreciation | ₹5 cr | ₹5 cr | +1.38% |
| Profit before tax | ₹10 cr | ₹12 cr | -9.52% |
| Tax | ₹3 cr | ₹4 cr | -16.79% |
| Net profit | ₹7 cr | ₹8 cr | -5.77% |
| EPS (₹) | ₹3.22 | ₹3.38 | -4.73% |
Operating margin of 8.40% compares with a Industrials sector median of 11.03% across 108 peers that have reported Q2FY27.
What to watch
- Whether operating margin recovers from 8.40% toward the 9.08% recorded in Q1FY27.
- Whether expenses continue to grow faster than revenue after rising +2.06% versus revenue growth of +1.30%.
- Whether other income remains a material contributor after accounting for 37.95% of pre-tax profit.