Digicontent returns to profit as operating margin jumps 6.3 points
Revenue grew 7.71% QoQ while expenses rose 0.83%, lifting operating margin 6.3 percentage points; the margin remained 4.92 points below the sector median.
Filed 02 Nov 2026, 13:11 IST · Digicontent Ltd (DGCONTENT)
Key takeaways
- Consolidated operating margin rose 6.3 percentage points QoQ to 7.82% as revenue grew 7.71% and expenses 0.83%.
- Consolidated net profit turned positive at Rs 4.27 cr from a Q1 loss of Rs 1.93 cr, despite a 38.67-percentage-point rise in the tax rate.
- At 7.82%, operating margin trailed the 12.74% median for 153 reported Consumer Discretionary peers by 4.92 percentage points.
Price around the results
Q2FY27 brought a consolidated profit reversal
On a consolidated basis, revenue grew 7.71% QoQ to Rs 132.81 cr, while operating profit rose to Rs 10.38 cr from Rs 1.88 cr. Expenses increased only 0.83% to Rs 122.43 cr, allowing net profit to move to Rs 4.27 cr from a Rs 1.93 cr loss in Q1FY27. The improvement was therefore driven mainly by the operating result rather than by non-operating income.
Cost control drove the margin recovery
Revenue grew 7.71% QoQ while expenses grew 0.83%, lifting operating margin by 6.3 percentage points to 7.82%. Interest expense fell 3.66%, while depreciation increased 0.53%, supporting the swing in profit before tax from a Rs 1.86 cr loss to Rs 6.56 cr profit. The tax rate rose 38.67 percentage points to 34.91%, limiting the conversion of pre-tax profit into net profit; other income accounted for 6.86% of PBT.
Margin improved but stayed below the peer median
Operating margin improved from 1.52% in Q1FY27 to 7.82% in Q2FY27, marking a sharp sequential recovery. It was still 4.92 percentage points below the 12.74% median among 153 Consumer Discretionary peers that had reported the quarter.
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 | ₹133 cr | ₹123 cr | +7.71% |
| Other income | ₹0 cr | ₹1 cr | -26.23% |
| Expenses | ₹122 cr | ₹121 cr | +0.83% |
| Operating profit | ₹10 cr | ₹2 cr | +452.13% |
| Operating margin (%) | 7.82% | 1.52% | — |
| Interest | ₹2 cr | ₹2 cr | -3.66% |
| Depreciation | ₹2 cr | ₹2 cr | +0.53% |
| Profit before tax | ₹7 cr | ₹-2 cr | — |
| Tax | ₹2 cr | ₹0 cr | +3171.43% |
| Net profit | ₹4 cr | ₹-2 cr | — |
| EPS (₹) | ₹0.73 | ₹-0.33 | — |
Operating margin of 7.82% compares with a Consumer Discretionary sector median of 12.74% across 153 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 7.82% after the 6.3-percentage-point QoQ recovery.
- Whether revenue growth remains ahead of expense growth, which were 7.71% and 0.83% QoQ in Q2FY27.
- Whether the tax rate moderates from 34.91% without greater reliance on other income, which was 6.86% of PBT.