Authum profit plunges 73% as margin decline extends to third quarter
Revenue fell faster than expenses sequentially, while a 24.42-point rise in the tax rate further reduced profit.
Filed 01 Jul 2026, 14:39 IST · Authum Investment & Infrastructure Ltd (AIIL)
Key takeaways
- Standalone net profit fell 72.90% sequentially to Rs 45.53 cr as profit before tax declined 53.67%.
- Operating margin narrowed 7.73 percentage points to 70.94%, the third straight quarterly decline.
- The stock fell 8.80% by the fifth session after results, versus a 3.33% median absolute move after its previous seven results.
Price around the results
Revenue contraction drove the quarterly earnings drop
Authum's standalone revenue fell 39.89% sequentially, while operating profit declined 45.80%, taking net profit down 72.90%. Profit before tax fell 53.67%; interest expense eased 3.67%, but depreciation rose 208.84%. Other income contributed 7.39% of pre-tax profit, so it was not the main driver of earnings.
Costs rose relative to revenue and tax pressure intensified
Expenses declined 18.12%, much less than the 39.89% fall in revenue, so costs grew faster relative to revenue and operating margin narrowed 7.73 percentage points. The tax rate rose 24.42 percentage points to 65.59%, adding to the decline in net profit rather than flattering it. Operating margin has now fallen for three consecutive quarters, from 96.65% in Q2FY26 to 78.67% in Q3FY26 and 70.94% in Q4FY26.
Margin remains above the reported financial-services peer median
Authum's 70.94% operating margin was 11.53 percentage points above the 59.41% median for the 52 Financial Services peers that had reported the quarter. The comparison remains favourable even as the company's own margin has declined across the past three quarters.
The fifth-session reaction was weaker than Authum's usual post-result move
The stock's first-day return was +0.43%, within its previous seven-result median absolute move of 3.33%, although it opened with a -3.61% gap.
Q4FY26 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹268 cr | ₹446 cr | -39.89% |
| Other income | ₹10 cr | ₹0 cr | +6012.50% |
| Expenses | ₹78 cr | ₹95 cr | -18.12% |
| Operating profit | ₹190 cr | ₹351 cr | -45.80% |
| Operating margin (%) | 70.94% | 78.67% | — |
| Interest | ₹61 cr | ₹63 cr | -3.67% |
| Depreciation | ₹7 cr | ₹2 cr | +208.84% |
| Profit before tax | ₹132 cr | ₹286 cr | -53.67% |
| Tax | ₹87 cr | ₹118 cr | -26.20% |
| Net profit | ₹46 cr | ₹168 cr | -72.90% |
| EPS (₹) | ₹0.61 | ₹9.89 | -93.83% |
Operating margin of 70.94% compares with a Financial Services sector median of 59.41% across 52 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +0.43% | +0.46% |
| Next session | -3.25% | — |
| 5 sessions | -8.80% | -6.72% |
| 15 sessions | +11.46% | — |
| 30 sessions | +3.87% | — |
Volume on the results session was 2.63× its 20-day average.
What to watch
- Whether operating margin holds above 70.94% after three consecutive quarterly declines.
- Whether the tax rate falls from 65.59% in the next reported quarter.
- Whether revenue recovers from Rs 268.2 cr while expenses remain below the pace of revenue growth.