CONCOR margin recovers, but profit growth stays flat as other income falls
Consolidated operating profit rose 8.65% YoY, but lower other income and higher interest limited net profit growth to 0.61%.
Filed 24 Jul 2026, 19:04 IST · after market close · Container Corporation Of India Ltd (CONCOR)
Key takeaways
- Operating margin recovered 1.52 percentage points QoQ to 13.64%, as expenses fell 6.22% against a 4.57% revenue decline.
- Despite operating profit rising 8.65% YoY, net profit increased only 0.61% because other income fell 10.20% and interest rose 15.53%.
- Other income contributed 23.74% of pre-tax profit, while CONCOR's 13.64% margin was 10.76 percentage points below the Services peer median.
Price around the results
Operating margin rebounds after three-quarter slide
CONCOR's consolidated revenue was nearly flat YoY, rising 0.28%, while expenses declined 0.92%; that combination lifted operating profit 8.65%. QoQ, revenue fell 4.57%, but expenses fell faster at 6.22%, expanding operating margin by 1.52 percentage points. The 13.64% margin marks a recovery from 12.12% in Q4FY26, though the trend remains well below the 18.20% recorded in Q2FY26.
Other income and interest diluted operating gains
Net profit rose only 0.61% YoY despite the operating profit increase, as other income declined 10.20% and interest costs increased 15.53%. Other income accounted for 23.74% of pre-tax profit, making it a material contributor to reported earnings. The YoY tax-rate decline of 1.42 percentage points provided some support to net profit, but did not offset the weaker non-operating contribution and higher interest.
Margin remains below reported Services peers
CONCOR's 13.64% operating margin was 10.76 percentage points below the 24.40% median for the four Services peers that had reported the quarter. It ranked third from the bottom on this comparison. QoQ momentum was better, with pre-tax profit rising 5.38% even as revenue declined, helped by lower interest and faster expense reduction.
No immediate market response after late filing
The results were filed after market close, so there is no reported market reaction yet. Across the stock's eight recent results reactions, it rose three times and fell five times, with a median absolute move of 3.10%.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹2,160 cr | ₹2,263 cr | -4.57% | +0.28% |
| Other income | ₹86 cr | ₹89 cr | -3.75% | -10.20% |
| Expenses | ₹1,865 cr | ₹1,989 cr | -6.22% | -0.92% |
| Operating profit | ₹295 cr | ₹274 cr | +7.36% | +8.65% |
| Operating margin (%) | 13.64% | 12.12% | — | — |
| Interest | ₹20 cr | ₹21 cr | -7.13% | +15.53% |
| Depreciation | ₹150 cr | ₹153 cr | -2.21% | -7.33% |
| Profit before tax | ₹360 cr | ₹342 cr | +5.38% | +3.17% |
| Tax | ₹88 cr | ₹82 cr | +6.35% | -2.51% |
| Net profit | ₹269 cr | ₹264 cr | +2.05% | +0.61% |
| EPS (₹) | ₹3.53 | ₹3.46 | +2.02% | +0.57% |
Operating margin of 13.64% compares with a Services sector median of 24.40% across 4 peers that have reported Q1FY27.
What to watch
- Whether operating margin holds above 13.64% after the decline from 18.20% in Q2FY26 to 12.12% in Q4FY26.
- Whether other income's 23.74% share of pre-tax profit reduces in the next quarter.
- Whether revenue growth improves from the 4.57% QoQ decline while expenses continue to grow more slowly than revenue.