TTML’s Rs 164.21 cr operating profit was outweighed by interest
Interest of Rs 191.49 cr and depreciation of Rs 33.65 cr more than absorbed operating profit, leaving a standalone net loss of Rs 59.20 cr.
Filed 22 Oct 2026, 15:47 IST · after market close · Tata Teleservices (Maharashtra) Ltd (TTML)
Key takeaways
- Standalone operating profit of Rs 164.21 cr could not cover interest expense of Rs 191.49 cr, leaving TTML with a Rs 59.20 cr net loss.
- The 53.03% operating margin was 28.22 percentage points above the 24.81% median for five reported telecom peers.
- TTML shares rose +3.89% after the results, following a +7.60% opening gap, with volume at 9.95 times normal.
Price around the results
Operating profit did not cover financing costs
On a standalone basis, revenue of Rs 309.65 cr generated operating profit of Rs 164.21 cr, but interest expense was higher at Rs 191.49 cr. That financing gap, along with depreciation of Rs 33.65 cr, resulted in a pre-tax and net loss of Rs 59.20 cr. The Rs 1.73 cr of other income was not large enough to change the outcome.
Margin was high relative to telecom peers
TTML's 53.03% operating margin was 28.22 percentage points above the 24.81% median of five telecom peers that had reported the quarter. The margin indicates that operating expenses of Rs 145.44 cr were well below revenue, but the benefit was absorbed by interest costs. With a zero tax charge, reported net profit remained unchanged from pre-tax profit.
Shares rose after the post-close filing
The results were filed after market close on 22 October, and the stock opened 7.60% higher on 23 October before ending the session up 3.89%. Trading volume was 9.95 times normal, while the narrower close-to-close gain indicates that part of the opening move was given back.
Q2FY27 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 |
|---|---|
| Revenue | ₹310 cr |
| Other income | ₹2 cr |
| Expenses | ₹145 cr |
| Operating profit | ₹164 cr |
| Operating margin (%) | 53.03% |
| Interest | ₹191 cr |
| Depreciation | ₹34 cr |
| Profit before tax | ₹-59 cr |
| Tax | ₹0 cr |
| Net profit | ₹-59 cr |
| EPS (₹) | ₹-0.30 |
Operating margin of 53.03% compares with a Telecommunication sector median of 24.81% across 5 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +3.89% | +4.28% |
Volume on the results session was 9.95× its 20-day average.
What to watch
- Whether operating profit continues to cover interest expense of Rs 191.49 cr.
- Whether operating margin remains near 53.03% as expenses stand at Rs 145.44 cr.
- Whether the next reported net loss improves from Rs 59.20 cr.