Profit falls 89.18% QoQ as operating margin drops to 5.20%
Slower expense reduction, higher interest and depreciation, and a higher tax rate compounded the squeeze; other income exceeded pre-tax profit.
Filed 04 Nov 2026, 18:45 IST · after market close · The Investment Trust of India Ltd (THEINVEST)
Key takeaways
- Consolidated net profit fell 89.18% QoQ to Rs 1.34 as operating profit dropped 65.75%.
- Operating margin narrowed 8.23 percentage points to 5.20% because expenses fell 2.96% while revenue declined 11.37%.
- Other income was 307.22% of pre-tax profit, while the tax rate rose 14.40 percentage points to 30.78%.
Price around the results
Revenue decline translated into a sharper profit drop
The consolidated revenue decline of 11.37% QoQ to Rs 52.61 was accompanied by only a 2.96% reduction in expenses, leaving operating profit down 65.75% to Rs 2.73. Net profit fell 89.18% to Rs 1.34, while EPS declined 89.03% to Rs 0.26.
Costs and financing charges squeezed the margin
Expenses grew faster than revenue on a sequential basis, narrowing operating margin by 8.23 percentage points to 5.20%. Interest expense rose 27.78% and depreciation increased 41.47%, adding pressure below operating profit. The tax rate also rose 14.40 percentage points to 30.78%.
Other income made up more than the reported pre-tax profit
Other income represented 307.22% of pre-tax profit, indicating that the quarter's earnings quality was heavily dependent on non-operating income. Pre-tax profit fell 86.89% QoQ, despite the contribution from other income.
Margin was well below the reported Financial Services peer median
The company's 5.20% operating margin was 46.46 percentage points below the 51.66% median among 93 Financial Services peers that had reported the quarter. It ranked sixth from the bottom on this measure. The results were filed after market close on 4 November 2026, so the immediate stock response is not covered here.
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 | ₹53 cr | ₹59 cr | -11.37% |
| Other income | ₹6 cr | ₹12 cr | -49.83% |
| Expenses | ₹50 cr | ₹51 cr | -2.96% |
| Operating profit | ₹3 cr | ₹8 cr | -65.75% |
| Operating margin (%) | 5.20% | 13.43% | — |
| Interest | ₹4 cr | ₹3 cr | +27.78% |
| Depreciation | ₹3 cr | ₹2 cr | +41.47% |
| Profit before tax | ₹2 cr | ₹15 cr | -86.89% |
| Tax | ₹1 cr | ₹2 cr | -75.21% |
| Net profit | ₹1 cr | ₹12 cr | -89.18% |
| EPS (₹) | ₹0.26 | ₹2.37 | -89.03% |
Operating margin of 5.20% compares with a Financial Services sector median of 51.66% across 93 peers that have reported Q2FY27.
What to watch
- Whether operating margin recovers from 5.20% after the 8.23-percentage-point sequential decline.
- Whether expenses remain below revenue growth after falling only 2.96% QoQ against an 11.37% revenue decline.
- Whether other income remains a major earnings contributor after accounting for 307.22% of pre-tax profit.