Max Estates' operating margin falls to -33.13% as other income drives profit
Revenue declined 9.29% sequentially, while other income rose 6.79% and accounted for 154.32% of pre-tax profit.
Filed 04 Nov 2026, 21:08 IST · after market close · Max Estates Ltd (MAXESTATES)
Key takeaways
- Standalone operating margin narrowed 11.61 percentage points sequentially to -33.13% as revenue fell 9.29% while expenses declined only 0.66%.
- Other income contributed 154.32% of pre-tax profit, making the Rs 13.58 cr net profit dependent on non-operating income despite an operating loss of Rs 5.66 cr.
- Net profit rose 11.95% sequentially to Rs 13.58 cr, helped by a 6.4 percentage-point reduction in the tax rate to 28.4%.
Price around the results
Operating loss widens despite only modest cost reduction
Max Estates reported standalone revenue of Rs 17.09 cr in Q2FY27, down 9.29% sequentially, while expenses fell only 0.66% to Rs 22.75 cr. Costs therefore declined much more slowly than revenue, widening the operating loss to Rs 5.66 cr and reducing operating margin by 11.61 percentage points to -33.13%.
Other income, not operations, supported pre-tax profit
Other income increased 6.79% sequentially to Rs 29.26 cr, contributing 154.32% of pre-tax profit of Rs 18.96 cr. This means the quarter's profit was generated despite negative operating profit, with interest and depreciation also declining 1.37% and 3.3%, respectively. The tax rate fell 6.4 percentage points to 28.4%, providing an additional lift to net profit.
Margin remains well below the sector comparison
The operating margin moved from -10.26% in Q1FY26 to -21.52% in Q1FY27 and -33.13% in Q2FY27 across the three reported points, indicating a continuing deterioration. Among 223 Consumer Discretionary peers that have reported, the sector median operating margin was 11.91%; Max Estates was 45.04 percentage points below it and ranked seventh from the bottom.
Results were filed after market close
The standalone results were filed after market close on 4 November 2026. The filing therefore provides the reported quarterly performance without an observed market response in the supplied period.
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 | ₹17 cr | ₹19 cr | -9.29% |
| Other income | ₹29 cr | ₹27 cr | +6.79% |
| Expenses | ₹23 cr | ₹23 cr | -0.66% |
| Operating profit | ₹-6 cr | ₹-4 cr | -39.41% |
| Operating margin (%) | -33.13% | -21.52% | — |
| Interest | ₹3 cr | ₹3 cr | -1.37% |
| Depreciation | ₹2 cr | ₹2 cr | -3.30% |
| Profit before tax | ₹19 cr | ₹19 cr | +1.88% |
| Tax | ₹5 cr | ₹6 cr | -16.98% |
| Net profit | ₹14 cr | ₹12 cr | +11.95% |
| EPS (₹) | ₹0.83 | ₹0.74 | +12.16% |
Operating margin of -33.13% compares with a Consumer Discretionary sector median of 11.91% across 223 peers that have reported Q2FY27.
What to watch
- Whether operating margin improves from -33.13%.
- Whether revenue recovers from Rs 17.09 cr without expenses again declining more slowly than sales.
- Whether other income remains above the Rs 29.26 cr reported this quarter and continues to account for a large share of pre-tax profit.