Margin expanded, but interest and other income kept Asian Hotels in loss
Revenue grew faster than costs QoQ, but higher interest and negative other income offset the operating improvement.
Filed 12 Nov 2026, 17:18 IST · after market close · Asian Hotels (North) Ltd (ASIANHOTNR)
Key takeaways
- Revenue rose +17.93% QoQ while expenses grew +6.54%, lifting operating margin by 7.97 percentage points to 25.43%.
- Despite operating profit of Rs 23.28 cr, interest of Rs 14.50 cr, depreciation of Rs 4.57 cr and negative other income of Rs -4.32 cr left the company with a Rs -0.37 cr net loss.
- The consolidated operating margin was 14.20 percentage points above the 11.23% median for 329 Consumer Discretionary peers that had reported.
Price around the results
Revenue growth widened the operating margin
On a consolidated basis, revenue increased +17.93% QoQ while expenses rose only +6.54%, allowing operating profit to grow +71.68%. Operating margin consequently expanded by 7.97 percentage points from 17.46% in Q1FY27 to 25.43% in Q2FY27.
Interest and negative other income erased operating gains
Interest rose +2.69% QoQ to Rs 14.50 cr, while depreciation was nearly unchanged, increasing +0.22% to Rs 4.57 cr. Other income swung from Rs 0.38 cr in Q1FY27 to negative Rs -4.32 cr, adding to the drag below operating profit. With profit before tax at Rs -0.11 cr, a tax charge of Rs 0.26 cr resulted in a net loss of Rs -0.37 cr; the -226.34% tax rate reflects tax charged despite a near-zero loss before tax.
Margin was well above the reported sector median
Asian Hotels' 25.43% operating margin was 14.20 percentage points above the 11.23% median among 329 Consumer Discretionary peers that had reported the quarter. The reported two-quarter sequence shows a sharp improvement from 17.46% in Q1FY27, although this operating strength has not yet translated into positive net profit.
Results were filed after market close
The consolidated results were filed after market close, so there is no stock-market reaction to assess in this note. The available figures show a better operating quarter, but financing costs and negative other income kept reported earnings below zero.
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 | ₹92 cr | ₹78 cr | +17.93% |
| Other income | ₹-4 cr | ₹0 cr | — |
| Expenses | ₹68 cr | ₹64 cr | +6.54% |
| Operating profit | ₹23 cr | ₹14 cr | +71.68% |
| Operating margin (%) | 25.43% | 17.46% | — |
| Interest | ₹15 cr | ₹14 cr | +2.69% |
| Depreciation | ₹5 cr | ₹5 cr | +0.22% |
| Profit before tax | ₹-0 cr | ₹-5 cr | +97.67% |
| Tax | ₹0 cr | ₹-1 cr | — |
| Net profit | ₹-0 cr | ₹-4 cr | +89.55% |
| EPS (₹) | ₹-0.09 | ₹-0.83 | +89.16% |
Operating margin of 25.43% compares with a Consumer Discretionary sector median of 11.23% across 329 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 25.43% while interest remains below operating profit of Rs 23.28 cr.
- Whether other income moves back from negative Rs -4.32 cr and reduces its drag on profit before tax of Rs -0.11 cr.
- Whether the tax charge of Rs 0.26 cr remains material when profit before tax is near break-even.