Kolte Patil's operating margin turns negative as revenue drops 63.64% QoQ
Other income was 193.76% of pre-tax profit, while management reported record quarterly pre-sales of Rs 1,019 cr.
Filed 03 Nov 2026, 20:06 IST · after market close · Kolte Patil Developers Ltd (KOLTEPATIL)
Key takeaways
- Consolidated operating margin swung to -0.09% from 20.61% sequentially as revenue fell 63.64% while expenses fell 54.16%.
- Other income equalled 193.76% of profit before tax, leaving Rs 5.7 cr of net profit despite a Rs 0.31 cr operating loss.
- Management reported record quarterly pre-sales of Rs 1,019 cr, including Rs 616 cr from the Vyana launch in Pune.
Price around the results
Revenue contraction wiped out operating profit
Kolte Patil Developers reported consolidated revenue of Rs 334.37 cr in Q2FY27, down 63.64% sequentially from Q1FY27. Expenses declined 54.16%, so they fell less than revenue and operating profit moved from Rs 189.51 cr to a loss of Rs 0.31 cr. Pre-tax profit fell 95.50% and net profit fell 96.11% sequentially.
Higher costs and other income shaped the quarter
The weaker revenue-to-cost movement cut operating margin by 20.70 percentage points to -0.09%. Interest expense rose 47.56% sequentially and the tax rate increased by 10.05 percentage points to 36.53%. Other income was 193.76% of pre-tax profit, so reported net profit was driven by non-operating income even as the operating business made a loss.
Pre-sales were strong despite weak reported revenue
Management said quarterly pre-sales reached a record Rs 1,019 cr, up 52% year on year, and that Vyana at The Reserve in Pune generated launch sales of Rs 616 cr. The company said Vyana has 1.01 million square feet of saleable area and is the first phase of The Reserve, a 5 million square feet development with estimated GDV of Rs 4,000 cr. Management also said it plans to deepen its presence in Pune, Mumbai and Bengaluru through focused expansion in high-potential micro-markets.
Margin was below the sector comparison
Kolte Patil's -0.09% operating margin was 12.26 percentage points below the 12.17% median for 186 Consumer Discretionary peers that had reported the same quarter. Its margin ranked 20th from the bottom in that comparison. The results were filed after market close on 3 November 2026, so there is no market reaction to assess yet.
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 | ₹334 cr | ₹920 cr | -63.64% |
| Other income | ₹17 cr | ₹17 cr | +3.45% |
| Expenses | ₹335 cr | ₹730 cr | -54.16% |
| Operating profit | ₹-0 cr | ₹190 cr | — |
| Operating margin (%) | -0.09% | 20.61% | — |
| Interest | ₹3 cr | ₹2 cr | +47.56% |
| Depreciation | ₹5 cr | ₹5 cr | +4.36% |
| Profit before tax | ₹9 cr | ₹199 cr | -95.50% |
| Tax | ₹3 cr | ₹53 cr | -93.79% |
| Net profit | ₹6 cr | ₹147 cr | -96.11% |
| EPS (₹) | ₹0.59 | ₹16.49 | -96.42% |
Operating margin of -0.09% compares with a Consumer Discretionary sector median of 12.17% across 186 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- KPDL recorded its highest-ever quarterly pre-sales value of Rs. 1,019 crore, up 52% year on year.
- KPDL achieved landmark launch sales of Rs. 616 crore at Vyana at The Reserve in Pune.
Guidance & outlook
- KPDL plans to deepen its presence in Pune, Mumbai and Bengaluru.
- KPDL aims to pursue focused expansion in high-potential micro-markets.
Expansion
- KPDL launched Vyana at The Reserve in Pune with 1.01 million square feet of saleable area and estimated GDV of Rs. 752 crore.
- The Reserve is a 5 million square feet development with estimated GDV of Rs. 4,000 crore.
New products
- KPDL launched Vyana at The Reserve as the first phase of The Reserve in Pune.
What to watch
- Whether operating margin recovers from -0.09% after the 20.70-percentage-point sequential decline.
- Whether other income remains a large contributor after accounting for 193.76% of Q2FY27 pre-tax profit.
- Progress in reported revenue from the Vyana launch, which management said generated Rs 616 cr of launch sales.