Expenses outpace revenue as Hubtown margin drops 15.45 points
Lower interest costs did not offset the operating squeeze; other income was 141.38% of pre-tax profit.
Filed 29 Oct 2026, 19:32 IST · after market close · Hubtown Ltd (HUBTOWN)
Key takeaways
- Revenue rose +203.95% QoQ, but expenses grew +261.39%, cutting operating margin by 15.45 percentage points to 2.81%.
- Other income contributed 141.38% of pre-tax profit, making the Rs 23.16 cr net profit heavily dependent on non-operating income.
- Hubtown's 2.81% operating margin was 9.93 percentage points below the 12.74% median for 107 reporting Consumer Discretionary peers.
Price around the results
Revenue surged, but operating conversion weakened
On a consolidated basis, revenue increased +203.95% sequentially, but expenses grew faster at +261.39%, pushing operating profit down -53.26%. The resulting 2.81% operating margin was 15.45 percentage points below Q1FY27's 18.26%, showing that the higher revenue did not translate into operating leverage.
Other income carried the reported profit
Lower interest expense, down -38.39% QoQ, partly cushioned the operating decline, but the tax rate rose 8.59 percentage points to 26.45%. Other income accounted for 141.38% of pre-tax profit, so the Rs 23.16 cr net profit had weak operating support and significant reliance on non-operating income.
Margin trails the sector after a sharp sequential fall
Hubtown's 2.81% operating margin was 9.93 percentage points below the 12.74% median among 107 Consumer Discretionary peers that had reported the quarter. The company ranked 15th from the bottom on this measure, while the sequential margin decline marks a sharp reversal from Q1FY27.
Results were filed after market close
Hubtown filed its consolidated Q2FY27 results after market close on 29 October 2026. The stock's immediate response is therefore not covered in this quarter's readout.
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 | ₹473 cr | ₹156 cr | +203.95% |
| Other income | ₹45 cr | ₹47 cr | -4.91% |
| Expenses | ₹460 cr | ₹127 cr | +261.39% |
| Operating profit | ₹13 cr | ₹28 cr | -53.26% |
| Operating margin (%) | 2.81% | 18.26% | — |
| Interest | ₹26 cr | ₹42 cr | -38.39% |
| Depreciation | ₹1 cr | ₹1 cr | -47.71% |
| Profit before tax | ₹31 cr | ₹32 cr | -2.69% |
| Tax | ₹8 cr | ₹6 cr | +44.12% |
| Net profit | ₹23 cr | ₹27 cr | -12.87% |
| EPS (₹) | ₹0.99 | ₹1.75 | -43.43% |
Operating margin of 2.81% compares with a Consumer Discretionary sector median of 12.74% across 107 peers that have reported Q2FY27.
What to watch
- Whether operating margin recovers from 2.81% after the 15.45-percentage-point sequential decline.
- Whether expense growth moderates from +261.39% QoQ relative to revenue growth of +203.95%.
- Whether other income remains as large as 141.38% of pre-tax profit.