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
- Sequential revenue growth of +372.96% and a -10.00% decline in expenses lifted operating margin by 27.72 percentage points in consolidated Q1FY27.
- Year on year, expenses rose +135.84% against revenue growth of +20.94%, narrowing operating margin by 3.18 percentage points despite a 6.43-point fall in the tax rate.
- The stock's initial +1.20% reaction was modest against its 3.33% median absolute move after results, despite six gains in its last eight result reactions.
Price around the results
Q1FY27 reverses the sequential profit slide
The sequential rebound was driven by a +372.96% increase in revenue while expenses fell -10.00%, taking operating profit growth to +572.37%. Other income contributed only 1.29% of pre-tax profit, so the improvement was not materially dependent on non-operating income. Net profit also rose +1826.33% sequentially, although the comparison was against a weak Q4FY26 base.
Year-on-year margin pressure came from the cost base
The year-on-year picture was less favourable: expenses grew +135.84%, far faster than revenue at +20.94%, which reduced operating margin by 3.18 percentage points. Interest expense rose +202.59% and depreciation increased +267.64%, adding pressure below operating profit. The tax rate fell by 6.43 percentage points, which supported net profit growth of +17.52%; other income remained only 1.29% of pre-tax profit.
Margin rebounds after three consecutive quarterly declines
Operating margin had declined from 96.66% in Q1FY26 to 92.27% in Q2FY26, 86.93% in Q3FY26 and 65.76% in Q4FY26. Q1FY27 breaks that three-quarter sequence with a 27.72-percentage-point sequential recovery, but remains 3.18 percentage points below the year-ago level. At 93.48%, the margin was 21.26 percentage points above the 72.22% median for the 22 Financial Services peers that had reported.
Initial market response was smaller than Authum's usual move
The results were filed after market close, and the stock gained +1.20% in the initial reaction before recording a -1.75% move in the subsequent measured session. That initial move was below the stock's 3.33% median absolute reaction after its last eight results, during which it rose six times and fell twice.
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 | ₹16 cr | ₹32 cr | -50.22% | +75.96% |
| Expenses | ₹96 cr | ₹106 cr | -10.00% | +135.84% |
| Operating profit | ₹1,374 cr | ₹204 cr | +572.37% | +16.97% |
| Operating margin (%) | 93.48% | 65.76% | — | — |
| Interest | ₹64 cr | ₹66 cr | -2.40% | +202.59% |
| Depreciation | ₹11 cr | ₹14 cr | -20.73% | +267.64% |
| Profit before tax | ₹1,249 cr | ₹156 cr | +699.30% | +9.22% |
| 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 93.48% compares with a Financial Services sector median of 72.22% across 22 peers that have reported Q1FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +1.20% | +1.41% |
| Next session | -1.75% | — |
Volume on the results session was 4.10× its 20-day average.
What to watch
- Whether operating margin holds at or above 93.48% after the sequential rebound.
- Whether expenses remain below the Q1FY27 level of Rs 95.75 cr as revenue momentum is assessed.
- Whether the tax rate stays near 11.11% without again becoming a major driver of net profit.