Cineline margin improves as revenue growth outpaces expenses
Standalone operating profit rose 35.15% sequentially, although other income made up 53.73% of pre-tax profit.
Filed 02 Nov 2026, 14:36 IST · Cineline India Ltd (CINELINE)
Key takeaways
- Standalone revenue rose 19.27% sequentially to Rs 70.69 cr, while expenses grew 15.41%, lifting operating profit 35.15%.
- Operating margin improved 2.60 percentage points to 22.14% as revenue growth outpaced expense growth.
- Net profit reached Rs 7.26 cr from a Rs 1.21 cr loss, but other income contributed 53.73% of pre-tax profit.
Price around the results
Revenue growth drove a sequential operating rebound
Cineline India’s standalone revenue increased 19.27% sequentially to Rs 70.69 cr, while expenses rose 15.41%. The resulting operating profit increase of 35.15% was faster than revenue growth. This moved the company from a Rs 1.21 cr net loss in Q1FY27 to a Rs 7.26 cr net profit in Q2FY27.
Margin expanded, but profit quality remains mixed
Operating margin rose 2.60 percentage points to 22.14% because costs grew more slowly than revenue. Interest expense fell 28.77% and depreciation declined 6.29% sequentially, also supporting the improvement below operating profit. However, other income accounted for 53.73% of pre-tax profit, while the tax rate increased 10.32 percentage points to 28.65%.
Margin stayed above the reported peer median
Cineline’s 22.14% operating margin was 9.40 percentage points above the 12.74% median for 153 Consumer Discretionary peers that had reported the quarter. The margin also improved from 19.54% in Q1FY27, but the available trend covers only this sequential comparison rather than a longer multi-quarter direction.
Q2FY27 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹71 cr | ₹59 cr | +19.27% |
| Other income | ₹5 cr | ₹-1 cr | — |
| Expenses | ₹55 cr | ₹48 cr | +15.41% |
| Operating profit | ₹16 cr | ₹12 cr | +35.15% |
| Operating margin (%) | 22.14% | 19.54% | — |
| Interest | ₹3 cr | ₹4 cr | -28.77% |
| Depreciation | ₹8 cr | ₹9 cr | -6.29% |
| Profit before tax | ₹10 cr | ₹-1 cr | — |
| Tax | ₹3 cr | ₹-0 cr | — |
| Net profit | ₹7 cr | ₹-1 cr | — |
| EPS (₹) | ₹1.97 | ₹-0.35 | — |
Operating margin of 22.14% compares with a Consumer Discretionary sector median of 12.74% across 153 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 22.14% after the 2.60-percentage-point sequential improvement.
- Whether expenses continue to grow more slowly than revenue, after rising 15.41% versus revenue growth of 19.27%.
- Whether other income remains a smaller contributor than its 53.73% share of pre-tax profit.