Revenue rose 15.01% qoq, but tax pushed net profit down 6.02%
Expenses grew faster than revenue and the tax rate rose to 17.77%, while operating margin remained well above the sector median.
Filed 29 Oct 2026, 17:21 IST · after market close · Twenty First Century Management Services Ltd (21STCENMGM)
Key takeaways
- Consolidated revenue rose +15.01% qoq, but expenses grew +38.46%, narrowing operating margin by 1.11 percentage points.
- The tax rate rose 17.77 percentage points from zero, pushing consolidated net profit down -6.02% qoq despite higher operating profit.
- Operating margin was 33.96 percentage points above the 59.53% median for 58 Financial Services peers that had reported.
Price around the results
Revenue growth did not reach net profit
The consolidated business grew revenue by +15.01% qoq and operating profit by +13.68%, but net profit fell -6.02%. The disconnect came from tax: the company moved from no tax in Q1FY27 to a 17.77% tax rate in Q2FY27.
Costs grew faster than revenue
Expenses increased +38.46% qoq against +15.01% revenue growth, reducing operating margin by 1.11 percentage points. Other income contributed only 0.57% of profit before tax, so the quarter's profit was largely operating in origin rather than supported by non-operating income.
Margin stayed above the peer median
The latest sequential margin direction was negative even as revenue accelerated, with operating margin at 93.49% after the 1.11-point decline. It remained 33.96 percentage points above the 59.53% median operating margin across 58 Financial Services peers that had reported the quarter.
Results were filed after market close
The consolidated results were filed after market close on 29 October 2026. The stock's immediate market response is therefore not covered 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 | ₹11 cr | ₹10 cr | +15.01% |
| Other income | ₹0 cr | ₹0 cr | — |
| Expenses | ₹1 cr | ₹1 cr | +38.46% |
| Operating profit | ₹10 cr | ₹9 cr | +13.68% |
| Operating margin (%) | 93.49% | 94.60% | — |
| Interest | ₹0 cr | ₹0 cr | — |
| Depreciation | ₹0 cr | ₹0 cr | — |
| Profit before tax | ₹10 cr | ₹9 cr | +14.33% |
| Tax | ₹2 cr | ₹0 cr | — |
| Net profit | ₹9 cr | ₹9 cr | -6.02% |
| EPS (₹) | ₹8.18 | ₹8.70 | -5.98% |
Operating margin of 93.49% compares with a Financial Services sector median of 59.53% across 58 peers that have reported Q2FY27.
What to watch
- Whether expenses grow more slowly than revenue after rising +38.46% qoq against revenue growth of +15.01%.
- Whether operating margin recovers from 93.49% after the 1.11 percentage-point qoq decline.
- Whether the tax rate remains at or near the reported 17.77% level rather than returning to zero.