GTL profit drops 38.23% QoQ despite operating margin turnaround
Lower other income drove the decline, while expenses fell faster than revenue and lifted operating margin to 19.42%.
Filed 05 Nov 2026, 16:23 IST · after market close · GTL Ltd (GTL)
Key takeaways
- Standalone net profit fell 38.23% QoQ to Rs 199.01 cr as other income declined 40.29%.
- Operating margin improved 22.66 percentage points QoQ to 19.42% as expenses fell 21.45% while revenue rose 0.65%.
- Other income accounted for 100.4% of pre-tax profit, while the tax rate remained 0.0%.
Price around the results
Other income drove the QoQ profit decline
GTL reported standalone net profit of Rs 199.01 cr in Q2FY27, down 38.23% QoQ, even as revenue edged up 0.65% to Rs 60.41 cr. Other income fell 40.29% to Rs 199.81 cr and accounted for 100.4% of pre-tax profit, making reported profit largely dependent on non-operating income. The tax rate was 0.0%, so there was no tax charge to reduce reported profit.
Operating performance recovered, but interest and depreciation rose
Operating profit turned positive at Rs 11.73 cr from a loss of Rs 1.95 cr in Q1FY27, as expenses fell 21.45% while revenue rose 0.65%. This lifted operating margin by 22.66 percentage points to 19.42%. Interest increased 7.48% and depreciation rose 128.43% QoQ, partly offsetting the operating improvement below that level.
Margin remained below the telecom peer median
GTL's 19.42% operating margin was 5.39 percentage points below the 24.81% median for 11 telecommunications peers that had reported the quarter. It ranked fifth from the bottom on this measure. The available trend shows a sharp rebound from the prior quarter's negative 3.24% margin, but does not establish a longer multi-quarter direction.
Results were filed after market close
The standalone results were filed at 16:23 IST on 5 November 2026, after the market close. There is therefore no reported market reaction to place against the stock's past post-results moves.
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 | ₹60 cr | ₹60 cr | +0.65% |
| Other income | ₹200 cr | ₹335 cr | -40.29% |
| Expenses | ₹49 cr | ₹62 cr | -21.45% |
| Operating profit | ₹12 cr | ₹-2 cr | — |
| Operating margin (%) | 19.42% | -3.24% | — |
| Interest | ₹10 cr | ₹9 cr | +7.48% |
| Depreciation | ₹2 cr | ₹1 cr | +128.43% |
| Profit before tax | ₹199 cr | ₹322 cr | -38.23% |
| Tax | ₹0 cr | ₹0 cr | — |
| Net profit | ₹199 cr | ₹322 cr | -38.23% |
| EPS (₹) | ₹12.65 | ₹20.48 | -38.23% |
Operating margin of 19.42% compares with a Telecommunication sector median of 24.81% across 11 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +3.03% | +1.02% |
Volume on the results session was 1.77× its 20-day average.
What to watch
- Whether operating margin holds above 19.42% after the Q1FY27 loss-making quarter.
- Whether other income remains close to its 100.4% share of pre-tax profit.
- Whether interest and depreciation continue to rise from Rs 10.2 cr and Rs 2.33 cr, respectively.