Operating margin drops 19.26 points as costs outrun revenue
Net profit was driven almost entirely by other income, which equalled 100.9% of pre-tax profit.
Filed 06 Nov 2026, 14:35 IST · GTL Infrastructure Ltd (GTLINFRA)
Key takeaways
- GTL Infrastructure's standalone operating margin fell 19.26 percentage points QoQ to 24.37% as expenses grew 36.28% while revenue rose 1.59%.
- Net profit rose to Rs 262.91 cr from Rs 69.39 cr QoQ, but other income contributed 100.9% of pre-tax profit and tax was Rs 0.00 cr.
- The stock fell 0.90%, an ordinary move against its 1.32% median absolute post-results move across eight prior reactions.
Price around the results
Costs erased the Q1 margin spike
Standalone revenue rose only 1.59% QoQ, while expenses increased 36.28%, pulling operating profit down 43.25% and reducing operating margin by 19.26 percentage points to 24.37%. The margin had reached 43.63% in Q1FY27, so the latest quarter marks a sharp reversal rather than a continuation of that improvement.
Reported profit was other-income led
Other income jumped to Rs 265.27 cr from Rs 5.06 cr QoQ and accounted for 100.9% of pre-tax profit. Interest expense also rose 20.47% sequentially, adding to the pressure below operating profit. The tax rate remained 0.00%, so the rise in reported profit was not caused by a sequential or year-on-year tax-rate change.
Margins remain volatile against peers
Year on year, revenue fell 6.73% while expenses rose 3.44%, resulting in a 7.43-percentage-point contraction in operating margin. The quarterly margin path has been uneven, moving from 15.07% in Q4FY26 to 43.63% in Q1FY27 and then 24.37% in Q2FY27. Among 11 telecom peers that have reported, the margin was 0.44 percentage points below the 24.81% sector median.
Market reaction was within its usual range
The stock fell 0.90% on the results session after opening 1.80% higher, with relative performance of -2.91%. Across eight prior result reactions, the stock rose three times and fell five times, while the median absolute move was 1.32%, making this decline broadly ordinary for the stock.
Q2FY27 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹333 cr | ₹327 cr | +1.59% | -6.73% |
| Other income | ₹265 cr | ₹5 cr | +5142.49% | +1314.02% |
| Expenses | ₹251 cr | ₹185 cr | +36.28% | +3.44% |
| Operating profit | ₹81 cr | ₹143 cr | -43.25% | -28.52% |
| Operating margin (%) | 24.37% | 43.63% | — | — |
| Interest | ₹27 cr | ₹23 cr | +20.47% | -89.64% |
| Depreciation | ₹56 cr | ₹56 cr | +0.49% | -7.22% |
| Profit before tax | ₹263 cr | ₹69 cr | +278.89% | — |
| Tax | ₹0 cr | ₹0 cr | — | — |
| Net profit | ₹263 cr | ₹69 cr | +278.89% | — |
| EPS (₹) | ₹0.20 | ₹0.05 | +300.00% | — |
Operating margin of 24.37% 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 | -0.90% | -2.91% |
Volume on the results session was 1.42× its 20-day average.
What to watch
- Whether revenue momentum improves from the current +1.59% QoQ.
- Whether operating margin recovers from 24.37% after the 19.26-percentage-point sequential fall.
- Whether other income remains a material contributor after accounting for 100.9% of pre-tax profit.