CCHHL operating margin drops 10.06 points sequentially
Revenue fell faster than expenses, while other income and a negative tax rate supported reported net profit of Rs 0.33 cr.
Filed 12 Nov 2026, 21:16 IST · after market close · Country Club Hospitality & Holidays Ltd (CCHHL)
Key takeaways
- Consolidated operating margin fell 10.06 percentage points sequentially to 8.40% as revenue declined -24.41% while expenses fell only -15.08%.
- Other income of Rs 2.19 cr was 1216.67% of pre-tax profit, making the Rs 0.33 cr net profit a low-quality measure of operating performance.
- The company's 8.40% operating margin was 2.83 percentage points below the 11.23% median of 329 Consumer Discretionary peers that had reported.
Price around the results
Revenue decline outpaced the cost reduction
Consolidated revenue declined -24.41% sequentially to Rs 11.61 cr, while expenses fell only -15.08% to Rs 10.64 cr. That mismatch drove operating profit down -65.49% and narrowed operating margin by 10.06 percentage points, from 18.46% in Q1FY27 to 8.40%.
Other income and negative tax distorted profit quality
Depreciation was broadly unchanged at Rs 2.98 cr from Rs 2.99 cr, and there was no interest expense, so the weaker pre-tax result mainly reflected the lower operating profit. Other income of Rs 2.19 cr was 1216.67% of pre-tax profit of Rs 0.18 cr, showing that reported profit was overwhelmingly supported outside operations. A negative tax charge of Rs -0.15 cr moved the tax rate down 61.09 percentage points and flattered net profit, which changed -21.43% sequentially.
Margin trails the Consumer Discretionary peer median
CCHHL's 8.40% operating margin was below the 11.23% median among 329 reported Consumer Discretionary peers, a gap of 2.83 percentage points. Sequentially, margin moved down from 18.46%, extending the deterioration visible between the two reported quarters.
Results were filed after the market close
The consolidated results were filed at 21:16 IST on 12 November 2026, after market close.
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 | ₹12 cr | ₹15 cr | -24.41% |
| Other income | ₹2 cr | ₹1 cr | +338.00% |
| Expenses | ₹11 cr | ₹13 cr | -15.08% |
| Operating profit | ₹1 cr | ₹3 cr | -65.49% |
| Operating margin (%) | 8.40% | 18.46% | — |
| Interest | ₹0 cr | ₹0 cr | — |
| Depreciation | ₹3 cr | ₹3 cr | -0.33% |
| Profit before tax | ₹0 cr | ₹0 cr | -48.57% |
| Tax | ₹-0 cr | ₹-0 cr | -114.29% |
| Net profit | ₹0 cr | ₹0 cr | -21.43% |
| EPS (₹) | ₹0.02 | ₹0.03 | -33.33% |
Operating margin of 8.40% compares with a Consumer Discretionary sector median of 11.23% across 329 peers that have reported Q2FY27.
What to watch
- Whether revenue recovers from Rs 11.61 cr without expenses again declining more slowly than revenue.
- Whether operating margin holds above 8.40% after the 10.06 percentage-point sequential decline.
- Whether profit remains dependent on other income accounting for 1216.67% of pre-tax profit and a tax rate of -80.10%.