FMNL profit falls 96.67% QoQ as revenue drops and margin narrows
Costs declined more slowly than revenue, while a Rs 0.12 cr tax credit turned a Rs 0.06 cr pre-tax loss into Rs 0.06 cr net profit.
Filed 05 Nov 2026, 17:09 IST · after market close · Future Market Networks Ltd (FMNL)
Key takeaways
- Consolidated net profit fell 96.67% QoQ to Rs 0.06 cr as revenue declined 26.58% to Rs 18.09 cr.
- Operating margin narrowed 4.62 percentage points QoQ to 36.91% because expenses fell 20.82%, less than revenue.
- FMNL's 36.91% operating margin was 15.41 percentage points above the Services-sector median across 53 reported peers.
Price around the results
Revenue drop leaves profit near breakeven
FMNL's consolidated revenue fell 26.58% QoQ to Rs 18.09 cr, and net profit dropped 96.67% to Rs 0.06 cr. The Rs 0.06 cr pre-tax loss shows that operating profit was absorbed by interest of Rs 3.21 cr and depreciation of Rs 5.9 cr. Other income of Rs 2.37 cr sat against the pre-tax loss, while a Rs 0.12 cr tax credit produced the reported net profit.
Lower costs did not keep pace with revenue
Expenses declined 20.82% QoQ, less than the 26.58% fall in revenue, so operating margin narrowed by 4.62 percentage points to 36.91%. Interest expense fell 17.48% and depreciation fell 26.43%, but those reductions were not enough to prevent the pre-tax loss. The tax rate moved to 212.5% from -24.68%, reflecting the effect of the tax credit on a near-zero pre-tax result.
Margin remains above the reported sector median
FMNL's 36.91% operating margin was 15.41 percentage points above the 21.5% median for the 53 Services-sector peers that had reported. Sequentially, however, the margin declined from 41.53% in Q1FY27. The available quarterly trend therefore shows a clear step-down in margin momentum, though it does not establish a longer run of declines.
Results were filed after market close
The consolidated results were filed after market close on 05 Nov 2026 at 17:09 IST. The immediate stock reaction is therefore not covered in this update.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹18 cr | ₹25 cr | -26.58% |
| Other income | ₹2 cr | ₹3 cr | -24.04% |
| Expenses | ₹11 cr | ₹14 cr | -20.82% |
| Operating profit | ₹7 cr | ₹10 cr | -34.70% |
| Operating margin (%) | 36.91% | 41.53% | — |
| Interest | ₹3 cr | ₹4 cr | -17.48% |
| Depreciation | ₹6 cr | ₹8 cr | -26.43% |
| Profit before tax | ₹-0 cr | ₹1 cr | — |
| Tax | ₹-0 cr | ₹-0 cr | +66.67% |
| Net profit | ₹0 cr | ₹2 cr | -96.67% |
| EPS (₹) | ₹0.01 | ₹0.31 | -96.77% |
Operating margin of 36.91% compares with a Services sector median of 21.50% across 53 peers that have reported Q2FY27.
What to watch
- Whether revenue recovers from Rs 18.09 cr in the next quarter.
- Whether operating margin holds above 36.91% after the 4.62 percentage-point QoQ decline.
- Whether pre-tax profit returns above the Rs 0.06 cr loss without the support of Rs 2.37 cr in other income.