TajGVK slips 6.89% despite a 29.51% operating margin
Consolidated profit was flat year on year, while the higher tax rate continued to weigh on earnings versus the previous quarter.
Filed 12 Nov 2026, 12:55 IST · TajGVK Hotels & Resorts Ltd (TAJGVK)
Key takeaways
- TajGVK's consolidated revenue and net profit were unchanged year on year at Rs 166.81 cr and Rs 26.55 cr.
- The 38.92% tax rate reduced earnings quality relative to the 27.77% rate in Q1FY26, while other income contributed 4.03% of pre-tax profit.
- The stock fell 6.89% on the results date despite a 29.51% operating margin, which was 18.28 percentage points above the sector median.
Price around the results
Flat year-on-year performance
TajGVK reported consolidated revenue of Rs 166.81 cr and net profit of Rs 26.55 cr, both unchanged from Q2FY26. Operating profit and EPS were also unchanged at Rs 49.22 cr and Rs 3.38. With no sequential comparison provided, the year-on-year result is the clearest read on current momentum.
Tax, not operating costs, shaped profit
Revenue and expenses were both unchanged year on year, so the 29.51% operating margin also held steady rather than reflecting a cost squeeze. The tax rate was 38.92%, versus 27.77% in Q1FY26, making the latest quarter's net profit lower than the Rs 31.66 cr reported then. Other income was 4.03% of pre-tax profit, a limited contribution to earnings.
Margin remains well above the peer median
The latest 29.51% operating margin was 18.28 percentage points above the 11.23% median for the 329 Consumer Discretionary peers that had reported the same quarter. Within the available trend, margin moved down from 30.35% in Q1FY26 to 29.51% in Q2FY26, while the tax rate moved higher over the same period.
Sharp market reaction without a trading-history benchmark
TajGVK shares fell 6.89% on the results date, with a 9.79-times volume ratio and a 0.04% opening gap. The stock's move relative to the broader market was -7.07%.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | YoY |
|---|---|---|
| Revenue | ₹167 cr | +0.00% |
| Other income | ₹2 cr | +0.00% |
| Expenses | ₹118 cr | +0.00% |
| Operating profit | ₹49 cr | +0.00% |
| Operating margin (%) | 29.51% | — |
| Interest | ₹2 cr | +0.00% |
| Depreciation | ₹6 cr | +0.00% |
| Profit before tax | ₹43 cr | +0.00% |
| Tax | ₹17 cr | +0.00% |
| Net profit | ₹27 cr | +0.00% |
| EPS (₹) | ₹3.38 | +0.00% |
Operating margin of 29.51% compares with a Consumer Discretionary sector median of 11.23% across 329 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -6.89% | -7.07% |
Volume on the results session was 9.79× its 20-day average.
What to watch
- Whether operating margin holds above 29.51%.
- Whether the tax rate moves back toward the 27.77% recorded in Q1FY26.
- Whether net profit recovers from Rs 26.55 cr without a larger contribution from other income than 4.03% of pre-tax profit.