Faze Three lifts operating margin as revenue growth outpaces costs
Consolidated net profit rose +60.37% QoQ, but other income still contributed 15.45% of pre-tax profit.
Filed 03 Nov 2026, 20:13 IST · after market close · Faze Three Ltd (FAZE3Q)
Key takeaways
- Consolidated operating margin widened 2.91 percentage points QoQ to 12.23% as revenue grew +15.34%, faster than expenses at +11.64%.
- Net profit rose +60.37% QoQ to Rs 15.46 cr, helped by a 1.67 percentage-point decline in the tax rate to 26.28%.
- Other income contributed 15.45% of pre-tax profit, making reported earnings less purely operational despite a +51.36% rise in operating profit.
Price around the results
Revenue growth outpaced expenses in Q2FY27
Faze Three's consolidated revenue increased +15.34% QoQ, while expenses rose +11.64%, allowing operating profit to grow +51.36% to Rs 32.36 cr. The wider gap between revenue and expense growth drove the 2.91 percentage-point improvement in operating margin. There is no year-on-year comparison in this quarter's results.
Operating leverage improved margins, but profit quality needs context
The operating margin improved to 12.23% from 9.32% in Q1FY27 because costs grew more slowly than revenue. Net profit also benefited from the tax rate falling 1.67 percentage points to 26.28%, while interest expense rose +2.48% and depreciation increased +9.67%. Other income of Rs 3.24 cr represented 15.45% of pre-tax profit, so part of the earnings increase came outside operations.
Margin matched the Consumer Discretionary peer median
Faze Three's 12.23% operating margin matched the median for the 188 Consumer Discretionary peers that had reported the same quarter. The margin was higher than the 9.32% recorded in the previous quarter, marking a clear sequential recovery. The available quarterly history covers only the move from Q1FY27 to Q2FY27.
Results were filed after market close
The consolidated results were filed after market close on 3 November 2026. The stock's post-results reaction is therefore not covered here.
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 | ₹265 cr | ₹229 cr | +15.34% |
| Other income | ₹3 cr | ₹6 cr | -43.26% |
| Expenses | ₹232 cr | ₹208 cr | +11.64% |
| Operating profit | ₹32 cr | ₹21 cr | +51.36% |
| Operating margin (%) | 12.23% | 9.32% | — |
| Interest | ₹6 cr | ₹6 cr | +2.48% |
| Depreciation | ₹9 cr | ₹8 cr | +9.67% |
| Profit before tax | ₹21 cr | ₹13 cr | +56.73% |
| Tax | ₹6 cr | ₹4 cr | +47.33% |
| Net profit | ₹15 cr | ₹10 cr | +60.37% |
| EPS (₹) | ₹6.37 | ₹3.96 | +60.86% |
Operating margin of 12.23% compares with a Consumer Discretionary sector median of 12.23% across 188 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 12.23% in the next reported quarter.
- Whether revenue growth continues to exceed expense growth after +15.34% versus +11.64% QoQ.
- Whether other income remains a material contributor after accounting for 15.45% of pre-tax profit.