Tata Investment profit falls 21.76% as costs outpace revenue
Operating margin slipped to 90.26% YoY, though it remained 36.78 percentage points above the Financial Services peer median.
Filed 02 Nov 2026, 19:19 IST · after market close · Tata Investment Corporation Ltd (TATAINVEST)
Key takeaways
- Consolidated net profit fell 21.76% YoY to Rs 115.92 cr as revenue declined 20.57% while expenses rose 14.96%.
- Operating margin narrowed 3.01 percentage points YoY to 90.26% because costs grew faster than revenue.
- Other income contributed 20.00% of pre-tax profit, while the lower 15.16% tax rate helped limit the decline in net profit.
Price around the results
Revenue contraction cuts operating profit
Consolidated revenue declined 20.57% YoY to Rs 122.3 cr, taking operating profit down 23.14% to Rs 110.39 cr. The sequential picture was similar: revenue fell 19.36% and operating profit fell 21.10% from Q1FY27. Other income was 20.00% of pre-tax profit, so reported earnings were not driven only by operating income.
Costs pressure the margin despite lower tax
Expenses rose 14.96% YoY and 1.45% QoQ even as revenue contracted, narrowing operating margin by 3.01 percentage points YoY and 2.00 percentage points QoQ. The tax rate rose 3.65 percentage points YoY, but fell 5.58 percentage points sequentially to 15.16%, cushioning the QoQ decline in net profit. Interest expense also increased 37.50% YoY, although its base remained small.
Margin remains above peers after Q1 rebound
Operating margin had recovered from 74.01% in Q4FY26 to 92.26% in Q1FY27 before easing to 90.26% in Q2FY27; this is a sequential pullback, not a third straight quarterly decline. The margin was 36.78 percentage points above the 53.48% median for 70 Financial Services peers that had reported the quarter.
Results were filed after the market closed
The consolidated results were filed after market close on 2 November 2026. There is therefore no reported 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 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹122 cr | ₹152 cr | -19.36% | -20.57% |
| Other income | ₹27 cr | ₹42 cr | -35.24% | +9.98% |
| Expenses | ₹12 cr | ₹12 cr | +1.45% | +14.96% |
| Operating profit | ₹110 cr | ₹140 cr | -21.10% | -23.14% |
| Operating margin (%) | 90.26% | 92.26% | — | — |
| Interest | ₹0 cr | ₹0 cr | +10.00% | +37.50% |
| Depreciation | ₹1 cr | ₹1 cr | +2.08% | +2.08% |
| Profit before tax | ₹137 cr | ₹181 cr | -24.54% | -18.40% |
| Tax | ₹21 cr | ₹38 cr | -44.85% | +7.47% |
| Net profit | ₹116 cr | ₹144 cr | -19.23% | -21.76% |
| EPS (₹) | ₹2.29 | ₹2.84 | -19.37% | -21.84% |
Operating margin of 90.26% compares with a Financial Services sector median of 53.48% across 70 peers that have reported Q2FY27.
What to watch
- Whether revenue recovers from Rs 122.3 cr after the 20.57% YoY decline.
- Whether operating margin holds near 90.26% after the 2.00-percentage-point QoQ fall.
- Whether other income remains around 20.00% of pre-tax profit.