Xtranet revenue more than doubled, but margin slipped sequentially
Expenses grew faster than revenue and the tax rate rose 4.18 percentage points, limiting the conversion into net profit.
Filed 02 Nov 2026, 18:32 IST · after market close · Xtranet Technologies Ltd (XTRANET)
Key takeaways
- Consolidated revenue rose 117.38% QoQ to Rs 109.69 cr, while expenses grew 117.79%.
- Operating margin narrowed 0.14 percentage points to 20.44% as costs grew faster than revenue.
- The tax rate rose 4.18 percentage points to 23.05%, while other income contributed only 0.84% of pre-tax profit.
Price around the results
Revenue growth translated into a smaller profit increase
Xtranet reported consolidated revenue growth of 117.38% QoQ in Q2FY27, while operating profit increased 115.78%. Net profit rose 127.15% to Rs 13.72 cr, helped by the higher operating base but partly offset by the higher tax burden.
Costs edged ahead of revenue and compressed margin
Interest rose 4.07% and depreciation increased 75.60%, adding to the pressure below operating profit. Other income was only 0.84% of pre-tax profit, so reported earnings were not materially dependent on non-operating income.
Margin remained above the reported IT peer median
Xtranet's 20.44% operating margin was 0.87 percentage points above the 19.57% median for the 42 Information Technology peers that had reported the quarter. The operating margin nevertheless moved lower sequentially, marking a weaker direction than Q1FY27. The results were filed after market close.
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 | ₹110 cr | ₹50 cr | +117.38% |
| Other income | ₹0 cr | ₹0 cr | -67.39% |
| Expenses | ₹87 cr | ₹40 cr | +117.79% |
| Operating profit | ₹22 cr | ₹10 cr | +115.78% |
| Operating margin (%) | 20.44% | 20.58% | — |
| Interest | ₹2 cr | ₹2 cr | +4.07% |
| Depreciation | ₹3 cr | ₹2 cr | +75.60% |
| Profit before tax | ₹18 cr | ₹7 cr | +139.52% |
| Tax | ₹4 cr | ₹1 cr | +193.57% |
| Net profit | ₹14 cr | ₹6 cr | +127.15% |
| EPS (₹) | ₹3.36 | ₹1.55 | +116.77% |
Operating margin of 20.44% compares with a Information Technology sector median of 19.57% across 42 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 20.44% after the 0.14-point sequential decline.
- Whether expenses continue to grow faster than revenue, after 117.79% versus 117.38% QoQ.
- Whether the tax rate moves back from 23.05% after rising 4.18 percentage points sequentially.