Authum margin rebounds sequentially, but costs cloud the year-on-year picture
The consolidated margin recovery followed a sharp revenue rebound, while higher interest and depreciation kept year-on-year profit growth below revenue growth.
Filed 20 Jul 2026, 20:26 IST · after market close · Authum Investment & Infrastructure Ltd (AIIL)
Key takeaways
- Consolidated revenue rose +372.96% sequentially, lifting operating margin by 23.33 percentage points to 89.05%.
- Year on year, expenses grew +185.46% against revenue growth of +20.94%, narrowing operating margin by 6.31 percentage points.
- Net profit rose +17.52% year on year as the tax rate fell 6.41 percentage points, while other income was only 1.13% of pre-tax profit.
Price around the results
Revenue rebound reverses the recent quarterly slowdown
Consolidated revenue increased +372.96% sequentially, while expenses grew only +51.09%, producing a 23.33 percentage-point margin recovery. This reversed the decline from 96.30% in Q2FY26 to 74.36% in Q3FY26 and 65.72% in Q4FY26. Other income contributed just 1.13% of pre-tax profit, so the quarter’s earnings were not primarily supported by non-operating income.
Year-on-year cost growth remains the pressure point
The year-on-year comparison is less favourable: revenue grew +20.94%, but expenses rose +185.46%, which cut operating margin by 6.31 percentage points. Interest expense increased +202.59% and depreciation rose +267.64%, adding to the cost burden below operating profit. The lower 11.13% tax rate, versus 17.54% a year earlier, helped net profit grow +17.52% despite the weaker operating margin.
Operating margin stays above the Financial Services peer median
Authum’s 89.05% operating margin was 25.33 percentage points above the 63.72% median among 56 Financial Services companies that had reported the quarter. The recovery is notable after two consecutive quarterly margin declines, but the year-on-year margin remains below 95.36%.
Initial stock reaction was smaller than its usual results move
The stock gained +1.20% on the first session after the results and was up +1.04% after five sessions, though it fell -1.75% on the following session. Across the last eight results reactions, the stock rose after six and fell after two, with a median absolute move of 3.33%, making the initial +1.20% move relatively modest. The results were filed after market close.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,470 cr | ₹311 cr | +372.96% | +20.94% |
| Other income | ₹14 cr | ₹30 cr | -52.92% | +54.10% |
| Expenses | ₹161 cr | ₹107 cr | +51.09% | +185.46% |
| Operating profit | ₹1,309 cr | ₹204 cr | +540.87% | +12.93% |
| Operating margin (%) | 89.05% | 65.72% | — | — |
| Interest | ₹64 cr | ₹66 cr | -2.40% | +202.59% |
| Depreciation | ₹11 cr | ₹14 cr | -20.73% | +267.64% |
| Profit before tax | ₹1,247 cr | ₹154 cr | +710.41% | +9.05% |
| Tax | ₹139 cr | ₹96 cr | +44.03% | -30.80% |
| Net profit | ₹1,108 cr | ₹58 cr | +1826.33% | +17.52% |
| EPS (₹) | ₹13.05 | ₹0.77 | +1594.81% | -76.49% |
Operating margin of 89.05% compares with a Financial Services sector median of 63.72% across 56 peers that have reported Q1FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +1.20% | +1.41% |
| Next session | -1.75% | — |
| 5 sessions | +1.04% | +2.09% |
Volume on the results session was 4.10× its 20-day average.
What to watch
- Whether operating margin holds above 89.05% after the rebound from 65.72% in Q4FY26.
- Whether expense growth moderates from +185.46% year on year.
- Whether the tax rate remains below the year-ago 17.54% level without further widening the gap between operating and net profit growth.