Advent Hotels' Q2 profit drops 77.33% as margin narrows
Revenue fell 7.92% sequentially while expenses declined only 0.61%, and the higher tax rate further reduced net profit.
Filed 03 Nov 2026, 17:12 IST · after market close · Advent Hotels International Ltd (ADVENTHTL)
Key takeaways
- Consolidated revenue fell 7.92% sequentially to Rs 74.14 cr, while operating margin narrowed 5.33 percentage points to 27.31%.
- Net profit dropped 77.33% to Rs 1.53 cr as the tax rate rose 10.89 percentage points to 51.57%.
- Advent Hotels' 27.31% operating margin was 15.08 percentage points above the 12.23% median for 188 Consumer Discretionary peers.
Price around the results
Q2 profit fell faster than revenue
The consolidated results show a sequential slowdown: revenue fell 7.92%, operating profit declined 22.98%, and net profit dropped 77.33% to Rs 1.53 cr. Profit before tax fell 72.30% to Rs 3.15 cr, indicating that the earnings decline was not limited to the operating line.
Expense reduction lagged the revenue decline
Revenue fell 7.92%, but expenses declined only 0.61%, so costs grew faster than revenue and operating margin narrowed by 5.33 percentage points to 27.31%. Depreciation rose 9.52% while interest was broadly stable, down 0.49%. Other income contributed 22.86% of profit before tax, and the 10.89-percentage-point rise in the tax rate to 51.57% further weighed on net profit.
Margin remains above the peer median but moved lower
Operating margin declined from 32.64% in Q1FY27 to 27.31% in Q2FY27, marking a clear sequential deterioration. Even after that decline, the margin was 15.08 percentage points above the 12.23% median among 188 reported Consumer Discretionary peers.
Results were filed after market close
The consolidated results were filed after market close on 03 Nov 2026. A post-results stock reaction is therefore not covered here.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹74 cr | ₹81 cr | -7.92% |
| Other income | ₹1 cr | ₹2 cr | -68.42% |
| Expenses | ₹54 cr | ₹54 cr | -0.61% |
| Operating profit | ₹20 cr | ₹26 cr | -22.98% |
| Operating margin (%) | 27.31% | 32.64% | — |
| Interest | ₹10 cr | ₹10 cr | -0.49% |
| Depreciation | ₹8 cr | ₹7 cr | +9.52% |
| Profit before tax | ₹3 cr | ₹11 cr | -72.30% |
| Tax | ₹2 cr | ₹5 cr | -64.79% |
| Net profit | ₹2 cr | ₹7 cr | -77.33% |
| EPS (₹) | ₹0.19 | ₹1.14 | -83.33% |
Operating margin of 27.31% compares with a Consumer Discretionary sector median of 12.23% across 188 peers that have reported Q2FY27.
What to watch
- Whether revenue recovers from Rs 74.14 cr after the 7.92% sequential decline.
- Whether operating margin holds above 27.31% after falling from 32.64% in Q1FY27.
- Whether the tax rate moves below 51.57% and reduces the pressure on net profit.