Costs fell faster than revenue, lifting Marathon's margin by 11.42 pp
Consolidated net profit still fell 13.81% QoQ as the tax rate rose 5.35 pp and other income made up 30.47% of pre-tax profit.
Filed 21 Oct 2026, 21:19 IST · after market close · Marathon Nextgen Realty Ltd (MARATHON)
Key takeaways
- Marathon Nextgen Realty’s consolidated operating margin rose 11.42 percentage points QoQ to 34.97% as expenses fell faster than revenue.
- Net profit declined 13.81% QoQ to Rs 45.19 cr despite the margin improvement, as the tax rate rose 5.35 percentage points to 28.56%.
- Other income contributed 30.47% of pre-tax profit, while the stock gained 3.41% in the first market reaction.
Price around the results
Revenue fell, but operating margin rebounded
Consolidated revenue declined 34.71% QoQ to Rs 128.95 cr, while operating profit fell only 3.07% to Rs 45.09 cr. Expenses declined 44.46%, faster than revenue, lifting operating margin by 11.42 percentage points from Q1FY27. The margin was 34.97%, compared with the Consumer Discretionary median of 12.24% across 34 reported peers.
Higher tax diluted the operating improvement
Profit before tax declined 7.35% QoQ, and net profit fell 13.81% to Rs 45.19 cr as the tax rate increased to 28.56% from 23.21%. Interest expense also rose 4.35%, although depreciation was unchanged at Rs 0.38 cr. Other income of Rs 19.27 cr represented 30.47% of pre-tax profit, so reported earnings were not driven solely by operations.
The margin improved from the previous quarter
Operating margin rose from 23.55% in Q1FY27 to 34.97% in Q2FY27, even as revenue and operating profit both declined sequentially. This is the first quarter shown in the available trend, so the data supports a quarter-on-quarter rebound rather than a longer multi-quarter direction. The stock gained 3.41% on the initial reaction, with a 3.36-times volume ratio and a 3.95% move relative to the market.
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 | ₹129 cr | ₹198 cr | -34.71% |
| Other income | ₹19 cr | ₹23 cr | -15.59% |
| Expenses | ₹84 cr | ₹151 cr | -44.46% |
| Operating profit | ₹45 cr | ₹47 cr | -3.07% |
| Operating margin (%) | 34.97% | 23.55% | — |
| Interest | ₹1 cr | ₹1 cr | +4.35% |
| Depreciation | ₹0 cr | ₹0 cr | +0.00% |
| Profit before tax | ₹63 cr | ₹68 cr | -7.35% |
| Tax | ₹18 cr | ₹16 cr | +13.94% |
| Net profit | ₹45 cr | ₹52 cr | -13.81% |
| EPS (₹) | ₹6.70 | ₹7.78 | -13.88% |
Operating margin of 34.97% compares with a Consumer Discretionary sector median of 12.24% across 34 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +3.41% | +3.95% |
Volume on the results session was 3.36× its 20-day average.
What to watch
- Whether operating margin holds above 34.97% after the Q2FY27 rebound.
- Whether other income remains below or above its 30.47% share of pre-tax profit.
- Whether the tax rate moves back from 28.56% toward the Q1FY27 level of 23.21%.