CL Educate swings to profit as operating margin rises to 18.57%
Revenue grew faster than expenses QoQ, while lower interest and the tax-rate change supported the move from a Rs 1.67 cr loss to Rs 8.25 cr profit.
Filed 03 Nov 2026, 18:15 IST · after market close · CL Educate Ltd (CLEDUCATE)
Key takeaways
- Consolidated operating margin expanded 4.95 percentage points QoQ to 18.57% as revenue growth outpaced expense growth.
- Net profit swung to Rs 8.25 cr from a Rs 1.67 cr loss in Q1FY27, helped by lower interest and a lower tax rate.
- CL Educate's 18.57% operating margin was 6.34 percentage points above the 12.23% median for 188 reported Consumer Discretionary peers.
Price around the results
Revenue growth translated into operating leverage
On a consolidated basis, Q2FY27 revenue rose 33.06% QoQ, while expenses grew 25.43%, allowing operating profit to increase 81.40%. Net profit moved from a Rs 1.67 cr loss in Q1FY27 to Rs 8.25 cr, reversing the quarter's earnings position.
Margin widened as costs and interest eased
Operating margin expanded 4.95 percentage points to 18.57% because expenses grew more slowly than revenue. Interest expense fell 31.85% QoQ, while depreciation was broadly stable, rising 1.25%. The tax rate fell 790.63 percentage points to 37.00%; the comparison is distorted by Q1's Rs 0.23 cr profit before tax. Other income contributed only 0.76% of Q2 profit before tax, so it was not a material source of earnings.
Margin now sits above the reported peer median
CL Educate's 18.57% operating margin was 6.34 percentage points above the 12.23% median among 188 Consumer Discretionary peers that had reported the same quarter. The trend improved from 13.62% in Q1FY27, marking a clear sequential recovery in operating profitability; no year-on-year comparison is provided.
Results were filed after market close
The consolidated results were filed after market close on 03 Nov 2026, so there is no reported stock reaction to assess yet. The next market response can be read against the improved operating margin and the return to positive net profit, while keeping in view that the tax-rate comparison is affected by Q1's very low profit before tax.
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 | ₹170 cr | ₹128 cr | +33.06% |
| Other income | ₹0 cr | ₹5 cr | -97.84% |
| Expenses | ₹138 cr | ₹110 cr | +25.43% |
| Operating profit | ₹32 cr | ₹17 cr | +81.40% |
| Operating margin (%) | 18.57% | 13.62% | — |
| Interest | ₹7 cr | ₹11 cr | -31.85% |
| Depreciation | ₹11 cr | ₹11 cr | +1.25% |
| Profit before tax | ₹13 cr | ₹0 cr | +5591.30% |
| Tax | ₹5 cr | ₹2 cr | +154.74% |
| Net profit | ₹8 cr | ₹-2 cr | — |
| EPS (₹) | ₹1.52 | ₹-0.31 | — |
Operating margin of 18.57% compares with a Consumer Discretionary sector median of 12.23% across 188 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 18.57% after the 4.95-percentage-point QoQ expansion.
- Whether interest expense remains below Rs 7.21 cr after falling 31.85% QoQ.
- Whether net profit remains positive after the swing from a Rs 1.67 cr loss to Rs 8.25 cr.