Oriental Hotels posts 23.03% operating margin in Q2FY27
The margin was well above the 9.6% sector-peer median, but interest, depreciation and negative other income reduced the conversion to pre-tax profit.
Filed 15 Oct 2026, 16:15 IST · after market close · Oriental Hotels Ltd (ORIENTHOT)
Key takeaways
- Consolidated operating margin was 23.03%, 13.43 percentage points above the 9.6% median for 11 reporting sector peers.
- Interest of Rs 2.31 cr and depreciation of Rs 9.08 cr reduced operating profit to pre-tax profit of Rs 12.36 cr.
- Other income was negative at Rs -3.37 cr, so reported profit received no support from non-operating income.
Price around the results
Operating profit held up before below-the-line charges
Oriental Hotels reported consolidated operating profit of Rs 27.12 cr from revenue of Rs 117.75 cr, implying a 23.03% operating margin. Interest of Rs 2.31 cr and depreciation of Rs 9.08 cr then reduced pre-tax profit to Rs 12.36 cr. The gap shows that depreciation was the larger of the two charges below operating profit.
Margin was ahead of the reporting peer group
Among 11 Consumer Discretionary peers that had reported the same quarter, the sector median operating margin was 9.6%. Oriental Hotels was 13.43 percentage points above that median, placing it ninth from the bottom in the reported peer set. With no year-on-year or sequential comparison provided, the quarter's margin position is clearer than its momentum.
Profit quality was not lifted by other income
Other income was negative at Rs -3.37 cr, which means non-operating income was a drag rather than a contributor to pre-tax profit. The 30.5% tax rate also did not flatter net profit through a low tax charge. The company filed these consolidated results after market close on 15 Oct 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 |
|---|---|
| Revenue | ₹118 cr |
| Other income | ₹-3 cr |
| Expenses | ₹91 cr |
| Operating profit | ₹27 cr |
| Operating margin (%) | 23.03% |
| Interest | ₹2 cr |
| Depreciation | ₹9 cr |
| Profit before tax | ₹12 cr |
| Tax | ₹4 cr |
| Net profit | ₹9 cr |
| EPS (₹) | ₹0.48 |
Operating margin of 23.03% compares with a Consumer Discretionary sector median of 9.60% across 11 peers that have reported Q2FY27.
What to watch
- Whether consolidated operating margin remains above 23.03%.
- Whether depreciation stays below the Rs 9.08 cr reported in Q2FY27.
- Whether other income moves back above the negative Rs -3.37 cr reported this quarter.