Authum profit drops 62.28% QoQ as revenue normalises
Revenue grew 12.56% YoY, but expenses rose 407.54% and the tax rate reversed last year's tax benefit.
Filed 03 Nov 2026, 20:53 IST · after market close · Authum Investment & Infrastructure Ltd (AIIL)
Key takeaways
- Consolidated net profit fell -62.28% QoQ even as operating margin remained 32.70 percentage points above the 79-peer sector median.
- Revenue growth was +12.56% YoY, but expenses grew +407.54%, narrowing operating margin by 13.00 percentage points.
- Net profit fell -45.53% YoY as the tax rate moved up 57.65 percentage points from last year's negative tax rate.
Price around the results
Quarterly profit fell with the sequential revenue reset
Authum reported consolidated net profit growth of -62.28% QoQ, alongside revenue growth of -53.67%. The sequential decline was sharper in operating profit, at -56.66%, while interest expense fell only -3.85%, limiting the benefit from lower activity. On a YoY basis, revenue grew +12.56% but profit before tax declined -8.43%.
Higher costs and tax normalisation weakened earnings quality
Expenses grew +407.54% YoY against revenue growth of +12.56%, reducing operating margin by 13.00 percentage points. Interest expense also grew +45.63% YoY, while depreciation rose +104.22%. The tax rate moved from -42.30% in Q2FY26 to 15.35% this quarter, so last year's tax benefit no longer flattered net profit; other income contributed -0.37% of pre-tax profit.
Margin remains above peers but has eased after the Q1 rebound
Operating margin declined 5.75 percentage points QoQ to 83.30%, after rising to 89.05% in Q1FY27 from 65.72% in Q4FY26. This is a pullback after the Q1 rebound rather than a third consecutive quarterly decline. The margin was 32.70 percentage points above the 50.60% median for the 79 Financial Services peers that had reported.
Results were filed after market close
The results were filed after market close, so there is no current-session stock reaction to assess. In the eight prior result reactions, the stock rose six times and fell twice, with a median absolute move of 1.20%.
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 | YoY |
|---|---|---|---|---|
| Revenue | ₹681 cr | ₹1,470 cr | -53.67% | +12.56% |
| Other income | ₹-2 cr | ₹14 cr | — | — |
| Expenses | ₹114 cr | ₹161 cr | -29.36% | +407.54% |
| Operating profit | ₹567 cr | ₹1,309 cr | -56.66% | -2.63% |
| Operating margin (%) | 83.30% | 89.05% | — | — |
| Interest | ₹62 cr | ₹64 cr | -3.85% | +45.63% |
| Depreciation | ₹10 cr | ₹11 cr | -14.79% | +104.22% |
| Profit before tax | ₹494 cr | ₹1,247 cr | -60.40% | -8.43% |
| Tax | ₹76 cr | ₹139 cr | -45.38% | — |
| Net profit | ₹418 cr | ₹1,108 cr | -62.28% | -45.53% |
| EPS (₹) | ₹4.92 | ₹13.05 | -62.30% | -89.11% |
Operating margin of 83.30% compares with a Financial Services sector median of 50.60% across 79 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 83.30% after the 5.75 percentage-point QoQ decline.
- Whether expense growth moderates from +407.54% YoY.
- Whether the tax rate remains near 15.35% rather than returning to last year's -42.30%.