UFO's Q2 profit rises as revenue growth keeps pace with costs
Operating margin was broadly stable, but higher tax and reliance on other income shaped the quarter's earnings quality.
Filed 03 Nov 2026, 16:47 IST · after market close · UFO Moviez India Ltd (UFO)
Key takeaways
- Consolidated revenue grew 16.90% QoQ while expenses grew 16.79%, leaving operating margin 0.08 percentage points higher at 16.09%.
- Net profit rose 13.65% QoQ, but a 4.10-percentage-point increase in the tax rate to 33.16% limited the conversion of pre-tax profit into earnings.
- Other income contributed 33.58% of pre-tax profit, while UFO's 16.09% operating margin was 3.86 percentage points above the 12.23% median for 188 reported Consumer Discretionary peers.
Price around the results
Revenue momentum came without operating-margin expansion
Consolidated revenue increased 16.90% QoQ and operating profit rose 17.49%, as expenses grew slightly slower at 16.79%. That kept operating margin nearly flat, up 0.08 percentage points to 16.09%, rather than producing a material margin expansion. The results were filed after market close on 03 Nov 2026.
Higher tax reduced profit conversion
Pre-tax profit grew 20.63% QoQ, helped by a 5.17% fall in interest expense, but net profit rose only 13.65% as the tax rate increased 4.10 percentage points to 33.16%. Other income accounted for 33.58% of pre-tax profit, making it a significant part of reported earnings. Depreciation also increased 8.21% QoQ.
Margin remains above the reported peer median
UFO's 16.09% operating margin was 3.86 percentage points above the 12.23% median among 188 Consumer Discretionary peers that had reported the same quarter. The available trend shows only the move from Q1FY27, when margin was 16.01%, so it indicates stability rather than a multi-quarter direction.
Screen count was broadly maintained
UFO reported 3,458 total distributor screens in Q2 FY27, comprising 2,927 CDC screens and 531 VPF screens. Management said it aims to build a standardized one-stop solution for setting up local movie theatres, and said Caravan Talkies helps brands reach media-dark areas in rural India.
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 | ₹129 cr | ₹111 cr | +16.90% |
| Other income | ₹3 cr | ₹4 cr | -19.30% |
| Expenses | ₹109 cr | ₹93 cr | +16.79% |
| Operating profit | ₹21 cr | ₹18 cr | +17.49% |
| Operating margin (%) | 16.09% | 16.01% | — |
| Interest | ₹3 cr | ₹3 cr | -5.17% |
| Depreciation | ₹11 cr | ₹10 cr | +8.21% |
| Profit before tax | ₹10 cr | ₹8 cr | +20.63% |
| Tax | ₹3 cr | ₹2 cr | +37.66% |
| Net profit | ₹6 cr | ₹6 cr | +13.65% |
| EPS (₹) | ₹1.65 | ₹1.45 | +13.79% |
Operating margin of 16.09% compares with a Consumer Discretionary sector median of 12.23% across 188 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- UFO reported 3,458 total distributor screens in Q2 FY27.
New initiatives
- UFO aims to create a standardized one-stop solution for setting up local movie theatres.
- UFO operates Caravan Talkies to help brands reach media-dark areas in rural India.
What to watch
- Whether operating margin holds above 16.09% in the next reported quarter.
- Whether the tax rate moves back from 33.16% toward the 29.06% recorded in Q1FY27.
- Whether total distributor screens remain near 3,458.