Operating profit fails to cover depreciation and interest at Cineline
Standalone Q1FY27 ended in a Rs 1.21 cr net loss, while management outlined 29 screens under fit-outs and a FY27 screen-count estimate of 105–110.
Filed 27 Jul 2026, 13:49 IST · CINELINE (CINELINE)
Key takeaways
- Standalone operating profit of Rs 11.58 cr was not enough to cover Rs 8.91 cr depreciation and Rs 3.65 cr interest, leaving profit before tax at a loss of Rs 1.48 cr.
- Negative other income of Rs 0.51 cr provided no support, and the company reported a net loss of Rs 1.21 cr despite a 19.54% operating margin.
- Management estimates screen count will reach 105–110 in FY27, with 29 screens currently under fit-outs.
Operating profit did not translate into net earnings
Cineline reported standalone revenue of Rs 59.27 cr and operating profit of Rs 11.58 cr in Q1FY27. Depreciation of Rs 8.91 cr and interest of Rs 3.65 cr absorbed the operating profit, while other income was negative at Rs 0.51 cr. The result was a loss before tax of Rs 1.48 cr and a net loss of Rs 1.21 cr.
Expansion remains the main business development
Management said three screens are scheduled to open in Gurgaon in Q2 FY27. The company also said 29 screens are under fit-outs across Haryana, Karnataka, Telangana, Uttar Pradesh and Tamil Nadu, with all committed fit-outs targeted for completion within FY27. Management cautioned that commercial opening schedules remain subject to the required licences and approvals.
The next quarter has a named movie slate
The company told investors that its Q2 FY27 movie line-up includes Dhamal 4, Spider-Man: Brand New Day and The Odyssey. These titles and the planned Gurgaon openings are the specific operating developments to track against the current standalone operating margin of 19.54%.
Q1FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹59 cr |
| Other income | ₹-1 cr |
| Expenses | ₹48 cr |
| Operating profit | ₹12 cr |
| Operating margin (%) | 19.54% |
| Interest | ₹4 cr |
| Depreciation | ₹9 cr |
| Profit before tax | ₹-1 cr |
| Tax | ₹-0 cr |
| Net profit | ₹-1 cr |
| EPS (₹) | ₹0.35 |
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- The company estimates its screen count will reach 105–110 in FY27.
Planned next quarter
- The Q2 FY27 movie lineup includes Dhamaal 4, Spider-Man: Brand New Day and The Odyssey.
Expansion
- Three screens are scheduled to launch in Gurgaon in Q2 FY27.
- The company has 29 screens under fit-outs across Haryana, Karnataka, Telangana, Uttar Pradesh and Tamil Nadu.
- All committed screen fit-outs are targeted for completion within FY27.
Problems & risks
- Commercial opening schedules remain subject to obtaining necessary licenses and approvals.
What to watch
- Whether operating margin holds above 19.54% in Q2 FY27.
- Whether the three Gurgaon screens scheduled for Q2 FY27 open after obtaining the required approvals.
- Progress on the 29 screens under fit-outs and the FY27 screen-count estimate of 105–110.