Avonmore’s operating margin drops 8.54 points as revenue falls
Revenue declined 10.92% QoQ while interest rose 119.05% and other income contributed 53.53% of pre-tax profit.
Filed 02 Nov 2026, 13:41 IST · Avonmore Capital & Management Services Ltd (AVONMORE)
Key takeaways
- Consolidated operating margin narrowed 8.54 percentage points QoQ to 19.61% as expenses declined only 0.34% against a 10.92% revenue decline.
- Net profit fell 36.46% QoQ as interest expense rose 119.05% and the tax rate increased 7.33 percentage points.
- Other income contributed 53.53% of pre-tax profit, while Avonmore’s 19.61% operating margin was 35.79 percentage points below the 55.40% peer median.
Price around the results
Revenue decline translated into a sharper operating-profit drop
Avonmore’s consolidated revenue fell 10.92% QoQ to Rs 44.11 cr, while operating profit declined 37.95% to Rs 8.65 cr. Expenses fell just 0.34% to Rs 35.46 cr, so the limited cost reduction did not match the revenue decline. Net profit consequently fell 36.46% to Rs 10.91 cr.
Higher interest and tax reduced profit conversion
The operating margin narrowed by 8.54 percentage points QoQ because expenses declined much more slowly than revenue. Interest expense rose 119.05% to Rs 1.38 cr, while the tax rate increased 7.33 percentage points to 10.43%. Other income of Rs 6.52 cr accounted for 53.53% of pre-tax profit, making reported earnings materially dependent on non-operating income.
Margin remains well below the financial-services peer median
Avonmore’s 19.61% operating margin was 35.79 percentage points below the 55.40% median for 67 financial-services peers that had reported the quarter. The company ranked 11th from the bottom on this measure. Compared with Q1FY27, the quarter marked a clear sequential reversal, with operating margin falling from 28.15%.
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 | ₹44 cr | ₹50 cr | -10.92% |
| Other income | ₹7 cr | ₹6 cr | +10.70% |
| Expenses | ₹35 cr | ₹36 cr | -0.34% |
| Operating profit | ₹9 cr | ₹14 cr | -37.95% |
| Operating margin (%) | 19.61% | 28.15% | — |
| Interest | ₹1 cr | ₹1 cr | +119.05% |
| Depreciation | ₹2 cr | ₹1 cr | +8.78% |
| Profit before tax | ₹12 cr | ₹18 cr | -31.26% |
| Tax | ₹1 cr | ₹1 cr | +130.91% |
| Net profit | ₹11 cr | ₹17 cr | -36.46% |
| EPS (₹) | ₹0.27 | ₹0.40 | -32.50% |
Operating margin of 19.61% compares with a Financial Services sector median of 55.40% across 67 peers that have reported Q2FY27.
What to watch
- Whether revenue moves up from Rs 44.11 cr while expenses remain below or near Rs 35.46 cr.
- Whether operating margin recovers from 19.61% after the 8.54-percentage-point QoQ decline.
- Whether other income’s 53.53% share of pre-tax profit and interest expense of Rs 1.38 cr decline in the next quarter.