CTE profit falls 33.90% QoQ as margin narrows 3.45 points
Revenue fell 7.11% while expenses declined 3.16%, and a 3.21-point rise in the tax rate added to the earnings pressure.
Filed 12 Nov 2026, 23:44 IST · after market close · CTE (CTE)
Key takeaways
- CTE's consolidated net profit fell 33.90% QoQ to Rs 4.68 cr as operating profit dropped 23.55%.
- Operating margin narrowed 3.45 percentage points QoQ to 16.12% because revenue fell faster than expenses.
- Other income contributed 24.33% of pre-tax profit, while the tax rate rose 3.21 percentage points to 10.41%.
Revenue contraction hit operating profit
CTE reported consolidated revenue of Rs 44.93 cr, down 7.11% QoQ, while expenses fell only 3.16% to Rs 37.68 cr. Because costs declined more slowly than revenue, operating profit fell 23.55% to Rs 7.24 cr. The sharper operating decline explains the drop in net profit to Rs 4.68 cr.
Margin narrowed as profit quality weakened
Operating margin fell 3.45 percentage points QoQ to 16.12%, reflecting the faster contraction in revenue than expenses. Other income of Rs 1.27 cr accounted for 24.33% of pre-tax profit, making it a material contributor to reported earnings. The tax rate also rose 3.21 percentage points to 10.41%, adding to the pressure below operating profit.
Sequential earnings momentum turned weaker
Compared with Q1FY27, pre-tax profit fell 31.50% and EPS declined 33.89% to Rs 2.38. Interest expense fell 9.49%, but that saving was outweighed by the operating decline, higher tax rate and lower other income.
Results were filed after market close
The consolidated results were filed after market close on 12 Nov 2026, so the stock had not responded at the time of reporting. There is no post-results move to compare with past reactions.
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 | ₹45 cr | ₹48 cr | -7.11% |
| Other income | ₹1 cr | ₹2 cr | -18.06% |
| Expenses | ₹38 cr | ₹39 cr | -3.16% |
| Operating profit | ₹7 cr | ₹9 cr | -23.55% |
| Operating margin (%) | 16.12% | 19.57% | — |
| Interest | ₹1 cr | ₹1 cr | -9.49% |
| Depreciation | ₹2 cr | ₹2 cr | +1.98% |
| Profit before tax | ₹5 cr | ₹8 cr | -31.50% |
| Tax | ₹1 cr | ₹1 cr | -1.82% |
| Net profit | ₹5 cr | ₹7 cr | -33.90% |
| EPS (₹) | ₹2.38 | ₹3.60 | -33.89% |
What to watch
- Whether operating margin recovers from 16.12% after the 3.45-percentage-point QoQ decline.
- Whether revenue improves from Rs 44.93 cr while expenses remain below the Rs 37.68 cr reported this quarter.
- Whether other income's contribution to pre-tax profit falls from 24.33% and the tax rate moves back from 10.41%.