Sinclairs Hotels swings to loss as operating margin collapses sequentially
Revenue fell 56.33% sequentially while expenses declined only 25.51%, leaving operating profit at Rs 0.04 cr.
Filed 05 Nov 2026, 17:40 IST · after market close · Sinclairs Hotels Ltd (SINCLAIR)
Key takeaways
- Standalone operating margin fell 41.24 percentage points sequentially to 0.41% as revenue declined faster than expenses.
- Sinclairs Hotels swung from a Rs 7.91 cr standalone profit in Q1FY27 to a Rs 1.27 cr loss in Q2FY27.
- Operating margin was 11.15 percentage points below the 11.56% median for 262 Consumer Discretionary peers that had reported.
Price around the results
Revenue drop outpaced the fall in costs
Standalone revenue declined 56.33% sequentially to Rs 8.8 cr, while expenses fell 25.51% to Rs 8.76 cr. Because costs fell much less than revenue, operating profit dropped 99.52% to Rs 0.04 cr and operating margin narrowed by 41.24 percentage points to 0.41%. The company ranked 27th from the bottom on operating margin among 262 reporting Consumer Discretionary peers, with its margin 11.15 percentage points below the sector median.
Interest and depreciation pushed the quarter into loss
The near-break-even operating result did not cover Rs 0.48 cr of interest and Rs 1.63 cr of depreciation, leaving profit before tax at a Rs 1.52 cr loss. Other income fell 87.69% sequentially to Rs 0.56 cr and represented -36.84% of pre-tax profit, so it did not offset the operating and below-operating charges. The 5.86-percentage-point reduction in the tax rate to 16.36% provided limited relief, with net profit still at a Rs 1.27 cr loss.
A sharp reversal from the previous quarter
The quarter marked a reversal from Q1FY27, when revenue was Rs 20.15 cr, operating margin was 41.65%, and net profit was Rs 7.91 cr. With only Q1FY27 shown in the available trend, the sequential deterioration is clear but does not establish a longer multi-quarter direction. The results were filed after market close on 05 Nov 2026, so there is no reported market reaction yet.
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 | ₹9 cr | ₹20 cr | -56.33% |
| Other income | ₹1 cr | ₹5 cr | -87.69% |
| Expenses | ₹9 cr | ₹12 cr | -25.51% |
| Operating profit | ₹0 cr | ₹8 cr | -99.52% |
| Operating margin (%) | 0.41% | 41.65% | — |
| Interest | ₹0 cr | ₹1 cr | -38.46% |
| Depreciation | ₹2 cr | ₹2 cr | -18.09% |
| Profit before tax | ₹-2 cr | ₹10 cr | — |
| Tax | ₹-0 cr | ₹2 cr | — |
| Net profit | ₹-1 cr | ₹8 cr | — |
| EPS (₹) | ₹-0.25 | ₹1.54 | — |
Operating margin of 0.41% compares with a Consumer Discretionary sector median of 11.56% across 262 peers that have reported Q2FY27.
What to watch
- Whether revenue recovers from Rs 8.8 cr in the next reported quarter.
- Whether operating margin moves back above 0.41% after the 41.24-percentage-point sequential decline.
- Whether interest and depreciation remain at Rs 0.48 cr and Rs 1.63 cr respectively.