MSTC margin jumps as revenue rises and expenses fall sequentially
Operating margin expanded 5.89 percentage points QoQ, but other income supplied 29.54% of pre-tax profit.
Filed 12 Nov 2026, 17:49 IST · after market close · MSTC Ltd (MSTCLTD)
Key takeaways
- Consolidated operating profit increased by +27.99% QoQ as revenue grew by +16.74% while expenses were down -1.01%, expanding operating margin by 5.89 percentage points.
- Other income accounted for 29.54% of pre-tax profit, so the +28.68% QoQ increase in net profit was not driven by operations alone.
- MSTC's 67.15% operating margin was 47.84 percentage points above the 19.31% median for 63 Services peers that reported the same quarter.
Price around the results
Revenue momentum widened MSTC's operating margin
In consolidated Q2FY27 results, revenue increased by +16.74% QoQ while expenses declined by -1.01%, driving a +27.99% rise in operating profit. The combination lifted operating margin by 5.89 percentage points from Q1FY27. MSTC filed the results after market close.
Other income remained important to profit growth
Other income rose by +23.69% QoQ and represented 29.54% of pre-tax profit, making it a material contributor to reported earnings. The tax rate also declined by 0.98 percentage points to 24.97%, which provided an additional lift to net profit. Interest remained negligible at Rs 0.01 cr, while depreciation increased by +19.26% QoQ.
Coal, land and licence auctions supported the quarter
The company said it had allocated seven commercial coal blocks under Round 15 and received bids for 125 liquor-shop licences in the first Karnataka auction tranche. Management also said MSTC sold residential, multipurpose and stray-bit land in Hyderabad valued at Rs 2,863 cr. For new platforms, management said the B2B travel portal is ready and being upgraded for B2C operations, while the TReDS platform is under development and awaiting RBI clearance; it is also examining the feasibility of coal and other future mineral exchanges.
MSTC operated well above the Services peer median
MSTC's 67.15% operating margin exceeded the 19.31% median among 63 Services companies that had reported the same quarter by 47.84 percentage points. Sequentially, the margin moved up from 61.26% in Q1FY27, but the available trend covers only the prior quarter and does not establish a longer multi-quarter pattern.
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 | ₹110 cr | ₹94 cr | +16.74% |
| Other income | ₹30 cr | ₹24 cr | +23.69% |
| Expenses | ₹36 cr | ₹37 cr | -1.01% |
| Operating profit | ₹74 cr | ₹58 cr | +27.99% |
| Operating margin (%) | 67.15% | 61.26% | — |
| Interest | ₹0 cr | ₹0 cr | — |
| Depreciation | ₹4 cr | ₹3 cr | +19.26% |
| Profit before tax | ₹100 cr | ₹79 cr | +26.99% |
| Tax | ₹25 cr | ₹20 cr | +22.15% |
| Net profit | ₹75 cr | ₹58 cr | +28.68% |
| EPS (₹) | ₹10.64 | ₹8.27 | +28.66% |
Operating margin of 67.15% compares with a Services sector median of 19.31% across 63 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
- MSTC partnered with Karnataka's Excise department to auction liquor shop licences, with 125 licences receiving bids.
- MSTC sold residential and multipurpose lands and stray bits in Hyderabad valued at ₹2,863 crore.
Guidance & outlook
- MSTC is examining the feasibility of setting up coal and other future mineral exchanges.
- MSTC's B2B travel portal is ready and is being upgraded for B2C operations.
- MSTC is developing a TReDS platform and has applied to RBI for clearance.
New initiatives
- MSTC successfully allocated seven commercial coal blocks under Round 15.
What to watch
- Whether revenue growth remains near the Q2FY27 QoQ pace of +16.74%.
- Whether operating margin holds above 67.15% after expanding by 5.89 percentage points QoQ.
- How much of pre-tax profit continues to come from other income versus 29.54% in Q2FY27.