Abans Financial Services profit drops 70.65% as margin narrows
Revenue fell 10.48% sequentially, but expenses declined only 9.02%, while a lower tax rate partly cushioned the fall in pre-tax profit.
Filed 11 Nov 2026, 20:34 IST · after market close · Abans Financial Services Ltd (AFSL)
Key takeaways
- Consolidated operating margin fell 1.59 percentage points sequentially to 1.09% as expenses declined less than revenue.
- Consolidated net profit dropped 70.65% sequentially to Rs 19.33 cr, while the tax rate fell 8.15 percentage points to 15.63%.
- Abans Financial Services' 1.09% operating margin was 51.47 percentage points below the 52.56% median for 106 reported financial-services peers.
Price around the results
Profit fell faster than revenue in Q2FY27
Abans Financial Services reported consolidated revenue of Rs 3,323.78 cr for Q2FY27, down 10.48% sequentially, while operating profit fell 63.45% to Rs 36.37 cr. The sharper operating-profit decline reflects the squeeze between lower revenue and expenses that did not fall as quickly. Net profit fell 70.65% to Rs 19.33 cr, with EPS declining 71.15% to Rs 3.52.
Slower cost reduction drove the margin squeeze
Expenses declined 9.02% sequentially against the 10.48% revenue decline, so costs grew faster than revenue on a sequential basis and operating margin narrowed by 1.59 percentage points. Interest was broadly unchanged, rising 0.39%, while depreciation increased 8.57%, adding to the pressure below operating profit. Other income contributed only 1.79% of pre-tax profit, so earnings quality was not materially supported by non-operating income.
Margin remains near the bottom of the peer set
The company's 1.09% operating margin was 51.47 percentage points below the 52.56% median among 106 financial-services peers that had reported the same quarter. It ranked fourth from the bottom in that comparison. The available quarter-on-quarter trend shows a fall from 2.68% in Q1FY27, rather than a sustained multi-quarter trend.
Lower tax rate softened the pre-tax profit decline
Profit before tax fell 73.48% sequentially to Rs 22.91 cr, while tax declined 82.58% to Rs 3.58 cr. The tax rate fell from 23.78% to 15.63%, which cushioned the impact of the weaker pre-tax result on net profit. The results were filed after market close, so there is no reported market reaction yet.
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 | ₹3,324 cr | ₹3,713 cr | -10.48% |
| Other income | ₹0 cr | ₹1 cr | -31.67% |
| Expenses | ₹3,287 cr | ₹3,613 cr | -9.02% |
| Operating profit | ₹36 cr | ₹100 cr | -63.45% |
| Operating margin (%) | 1.09% | 2.68% | — |
| Interest | ₹13 cr | ₹13 cr | +0.39% |
| Depreciation | ₹1 cr | ₹1 cr | +8.57% |
| Profit before tax | ₹23 cr | ₹86 cr | -73.48% |
| Tax | ₹4 cr | ₹21 cr | -82.58% |
| Net profit | ₹19 cr | ₹66 cr | -70.65% |
| EPS (₹) | ₹3.52 | ₹12.20 | -71.15% |
Operating margin of 1.09% compares with a Financial Services sector median of 52.56% across 106 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -1.60% | -1.78% |
Volume on the results session was 2.78× its 20-day average.
What to watch
- Whether operating margin recovers from 1.09% after its 1.59 percentage-point sequential decline.
- Whether expenses continue to decline faster than revenue, reversing the Q2FY27 pattern of -9.02% versus -10.48%.
- Whether the tax rate remains near 15.63% rather than returning to the Q1FY27 level of 23.78%.