CIE Automotive India margin slips again as costs outpace sales
Q2FY27 net profit rose sequentially despite weaker operating profit, with lower interest and higher other income offsetting cost pressure.
Filed 22 Oct 2026, 16:48 IST · after market close · CIE Automotive India Ltd (CIEINDIA)
Key takeaways
- Operating margin narrowed by 0.80 percentage points year on year as expenses grew +12.06% against revenue growth of +11.02%.
- Net profit rose +3.43% sequentially despite a -4.04% fall in operating profit, helped by 13.85% of pre-tax profit coming from other income and a 0.32 percentage-point lower tax rate.
- The 14.20% operating margin remained 2.08 percentage points above the 12.12% median for 31 Consumer Discretionary peers that have reported.
Price around the results
Costs outpaced sales for a second straight comparison
CIE Automotive India reported consolidated Q2FY27 results with revenue growth of +11.02% year on year, but expenses grew faster at +12.06%, reducing operating margin by 0.80 percentage points. Sequentially, revenue increased only +0.48% while expenses rose +1.27%, taking margin down another 0.67 percentage points. This was the second consecutive quarterly margin decline after the 15.39% level in Q4FY26.
Other income supported profit quality in a softer operating quarter
Operating profit fell -4.04% sequentially, but net profit increased +3.43% as interest expense declined -61.06% and other income rose +50.47%. Other income accounted for 13.85% of pre-tax profit, so the sequential improvement in net profit was not driven by operations alone. The tax rate also fell by 0.32 percentage points sequentially, while it was broadly unchanged year on year, up 0.02 percentage points.
Margin remains above peers despite European pressure
The company's 14.20% operating margin was 2.08 percentage points above the 12.12% median among 31 Consumer Discretionary peers that have reported the same quarter. Management said European sales remained under pressure in a stagnant market, providing a stated explanation for part of the operating environment. The company still reported year-on-year growth, but the faster rise in expenses limited operating-profit growth to +5.14%.
No market reaction yet; past responses have leaned negative
The consolidated results were filed after market close, so there is no reported market reaction yet. Across the last 8 result reactions, the stock rose 3 times and fell 5 times, with a median absolute move of 1.43%. The recent history includes a -11.32% move, making the usual reaction materially smaller than that outlier.
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 | ₹2,633 cr | ₹2,621 cr | +0.48% | +11.02% |
| Other income | ₹45 cr | ₹30 cr | +50.47% | +129.94% |
| Expenses | ₹2,259 cr | ₹2,231 cr | +1.27% | +12.06% |
| Operating profit | ₹374 cr | ₹390 cr | -4.04% | +5.14% |
| Operating margin (%) | 14.20% | 14.87% | — | — |
| Interest | ₹4 cr | ₹10 cr | -61.06% | +10.92% |
| Depreciation | ₹93 cr | ₹97 cr | -4.26% | +4.38% |
| Profit before tax | ₹322 cr | ₹312 cr | +3.06% | +13.86% |
| Tax | ₹79 cr | ₹78 cr | +1.74% | +13.95% |
| Net profit | ₹244 cr | ₹236 cr | +3.43% | +13.91% |
| EPS (₹) | ₹6.43 | ₹6.21 | +3.54% | +14.01% |
Operating margin of 14.20% compares with a Consumer Discretionary sector median of 12.12% across 31 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -3.18% | -2.79% |
Volume on the results session was 3.62× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Problems & risks
- European sales continue to be under pressure in a stagnant market.
What to watch
- Whether operating margin stabilises above 14.20% after two consecutive quarterly declines.
- Whether other income remains close to its 13.85% share of pre-tax profit, alongside management's reported concern about European sales.