Coral India's profit falls as other income drops sharply
Operating profit edged up, but faster expense growth cut the margin and a higher tax rate added to the sequential profit decline.
Filed 04 Nov 2026, 15:16 IST · Coral India Finance & Housing Ltd (CORALFINAC)
Key takeaways
- Standalone net profit fell 21.77% sequentially as other income declined 43.67%.
- Operating margin narrowed 3.18 percentage points because expenses grew 19.32%, faster than revenue at 5.65%.
- Operating margin of 73.22% was 51.49 percentage points above the 21.73% median for 45 Services peers.
Price around the results
Other income drove the sequential profit decline
Coral India Finance & Housing reported standalone net profit down 21.77% sequentially, even as revenue increased 5.65% and operating profit rose 1.41%. Other income fell 43.67%, leaving it at 31.08% of pre-tax profit. The tax rate also rose 3.17 percentage points to 16.84%, so the lower profit was not caused by a tax-rate benefit.
Costs grew faster and narrowed the operating margin
Expenses increased 19.32% sequentially against 5.65% revenue growth, reducing operating margin by 3.18 percentage points to 73.22%. Interest was zero and depreciation was unchanged at Rs 0.02 cr, so the margin pressure came from operating expenses rather than financing or depreciation costs.
Margin remained well above the Services peer median
The company's 73.22% operating margin stood 51.49 percentage points above the 21.73% median among 45 Services companies that had reported the same quarter. The sequential margin decline follows the Q1FY27 margin of 76.40%, making the direction negative across the two reported quarters.
Shares rose modestly on the results day
The stock gained 0.86% on the results day, after opening 2.05% higher. Its relative return was 0.23%, while traded volume was 0.25 times the reference level.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹4 cr | ₹4 cr | +5.65% |
| Other income | ₹1 cr | ₹2 cr | -43.67% |
| Expenses | ₹1 cr | ₹1 cr | +19.32% |
| Operating profit | ₹3 cr | ₹3 cr | +1.41% |
| Operating margin (%) | 73.22% | 76.40% | — |
| Interest | ₹0 cr | ₹0 cr | — |
| Depreciation | ₹0 cr | ₹0 cr | +0.00% |
| Profit before tax | ₹4 cr | ₹5 cr | -18.79% |
| Tax | ₹1 cr | ₹1 cr | +0.00% |
| Net profit | ₹3 cr | ₹4 cr | -21.77% |
| EPS (₹) | ₹0.86 | ₹1.10 | -21.82% |
Operating margin of 73.22% compares with a Services sector median of 21.73% across 45 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +0.86% | +0.23% |
Volume on the results session was 0.25× its 20-day average.
What to watch
- Whether operating margin holds above 73.22%.
- Whether expense growth moves below the prior quarter's 19.32% against revenue growth of 5.65%.
- Whether other income remains a large contributor after accounting for 31.08% of pre-tax profit.