Tips Films cuts loss sharply, but operating margin stays negative
Revenue rose 29.42% QoQ while expenses fell 19.11%, lifting operating margin 60.55 percentage points; it still trailed the peer median by 13.67 points.
Filed 29 Oct 2026, 14:04 IST · Tips Films Ltd (TIPSFILMS)
Key takeaways
- Standalone net loss narrowed to Rs 0.54 cr in Q2FY27 from Rs 29.41 cr in Q1FY27 as revenue rose 29.42% and expenses fell 19.11%.
- Operating margin improved 60.55 percentage points to -0.93%, but Tips Films remained ninth from bottom among 107 reporting Consumer Discretionary peers.
- Other income of Rs 0.23 cr did not offset the operating loss, while the 0% tax rate provided no tax-related lift to earnings.
Price around the results
Q2 loss narrowed after the Q1 setback
In the standalone Q2FY27 accounts, net loss narrowed to Rs 0.54 cr from Rs 29.41 cr in Q1FY27. Revenue increased 29.42% sequentially to Rs 62.07 cr, while expenses declined 19.11% to Rs 62.65 cr. The improvement was therefore driven by both higher revenue and lower costs, rather than by other income or tax.
Operating margin recovered but remained below zero
Operating margin improved 60.55 percentage points from Q1FY27 to -0.93%, as expenses grew slower than revenue. Other income was Rs 0.23 cr, equivalent to -42.59% of pre-tax profit because pre-tax profit was negative, and it did not turn the quarter profitable. The 0% tax rate also gave no tax-related boost to net profit.
Margin remained well below the consumer discretionary median
Tips Films' -0.93% operating margin was 13.67 percentage points below the 12.74% median for the 107 Consumer Discretionary peers that had reported. The company ranked ninth from the bottom on this measure, despite the sequential recovery from Q1FY27.
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 | ₹62 cr | ₹48 cr | +29.42% |
| Other income | ₹0 cr | ₹0 cr | -17.86% |
| Expenses | ₹63 cr | ₹77 cr | -19.11% |
| Operating profit | ₹-1 cr | ₹-29 cr | +98.03% |
| Operating margin (%) | -0.93% | -61.48% | — |
| Interest | ₹0 cr | ₹0 cr | — |
| Depreciation | ₹0 cr | ₹0 cr | -5.00% |
| Profit before tax | ₹-1 cr | ₹-29 cr | +98.16% |
| Tax | ₹0 cr | ₹0 cr | — |
| Net profit | ₹-1 cr | ₹-29 cr | +98.16% |
| EPS (₹) | ₹-1.24 | ₹-68.04 | +98.18% |
Operating margin of -0.93% compares with a Consumer Discretionary sector median of 12.74% across 107 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above -0.93% in the next quarter.
- Whether revenue remains above Rs 62.07 cr while expenses stay below Rs 62.65 cr.
- Whether net profit moves above the current Rs -0.54 cr without support from a lower tax rate than 0%.