Other income drove profit as Coffee Day’s operating margin fell 4.99 pp
Consolidated revenue grew 2.86% QoQ, but expenses rose 8.99%, leaving operating margin at 11.36%, just below the 11.42% peer median.
Filed 06 Nov 2026, 15:02 IST · Coffee Day Enterprises Ltd (COFFEEDAY)
Key takeaways
- Consolidated operating margin fell 4.99 percentage points QoQ to 11.36% as expenses grew 8.99% against revenue growth of 2.86%.
- Net profit rose to Rs 35.91 cr from Rs 4.52 cr QoQ, but other income accounted for 130.59% of pre-tax profit.
- Operating margin was 0.06 percentage points below the 11.42% median of 287 Consumer Discretionary peers that reported the quarter.
Price around the results
Revenue growth did not translate into operating profit
Coffee Day’s consolidated revenue increased 2.86% QoQ, but expenses grew 8.99%, causing operating profit to decline 28.52%. The resulting 4.99-percentage-point margin contraction shows that costs absorbed the modest revenue increase.
Other income changed the profit mix
Other income rose 1170.2% QoQ to Rs 57.54 cr and accounted for 130.59% of pre-tax profit, making it the main reason reported profit improved to Rs 44.06 cr before tax. Interest expense fell 1.38%, while depreciation increased 0.74%, so neither was the main driver of the profit swing. The tax rate moved up 18.5 percentage points from zero to 18.5%.
Margin sits just below the sector median
The 11.36% operating margin was 0.06 percentage points below the 11.42% median among 287 Consumer Discretionary peers that had reported.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹298 cr | ₹290 cr | +2.86% |
| Other income | ₹58 cr | ₹5 cr | +1170.20% |
| Expenses | ₹264 cr | ₹243 cr | +8.99% |
| Operating profit | ₹34 cr | ₹47 cr | -28.52% |
| Operating margin (%) | 11.36% | 16.35% | — |
| Interest | ₹19 cr | ₹19 cr | -1.38% |
| Depreciation | ₹29 cr | ₹29 cr | +0.74% |
| Profit before tax | ₹44 cr | ₹5 cr | +874.78% |
| Tax | ₹8 cr | ₹0 cr | — |
| Net profit | ₹36 cr | ₹5 cr | +694.47% |
| EPS (₹) | ₹1.66 | ₹0.04 | +4050.00% |
Operating margin of 11.36% compares with a Consumer Discretionary sector median of 11.42% across 287 peers that have reported Q2FY27.
What to watch
- Whether operating margin recovers from 11.36% after the 4.99-percentage-point QoQ decline.
- Whether expense growth moderates from 8.99% relative to revenue growth of 2.86%.
- Whether other income remains a large contributor after accounting for 130.59% of pre-tax profit.