Interest surge and cost growth push Unitech to Rs 808.45 cr loss
Revenue was nearly flat sequentially, but faster expense growth and higher interest turned a Q1FY27 operating profit into a loss.
Filed 12 Nov 2026, 14:50 IST · Unitech Ltd (UNITECH)
Key takeaways
- Consolidated revenue rose 1.63% qoq, but expenses increased 28.26%, driving a 24.68 percentage-point fall in operating margin to -18.89%.
- Interest rose 10.78% qoq to Rs 800.30 cr, leaving Unitech with a consolidated net loss of Rs 808.45 cr despite Rs 13.20 cr of other income.
- Unitech's operating margin was 30.12 percentage points below the 11.23% median for 329 Consumer Discretionary peers that reported the quarter.
Price around the results
Revenue held up, but operating profit swung into the red
Unitech's consolidated revenue increased 1.63% qoq to Rs 107.74 cr, while operating profit moved from Rs 6.14 cr in Q1FY27 to a loss of Rs 20.36 cr. The reversal reflects expenses growing much faster than revenue, with the operating margin falling from 5.79% to -18.89%. The net loss widened to Rs 808.45 cr as the operating loss was compounded by interest of Rs 800.30 cr.
Interest was the main drag on pre-tax results
Interest costs rose 10.78% qoq, while depreciation increased 6.06%, adding to the pressure below operating profit. Other income fell 10.51% to Rs 13.20 cr and represented -1.63% of reported pre-tax profit, so it did not materially offset the Rs 808.50 cr pre-tax loss. The 0.01% tax rate had little effect on the reported loss.
Margin deterioration puts Unitech near the sector's weakest reporters
The sequential margin decline marks a sharp deterioration from Q1FY27's 5.79% operating margin; the available trend shows the latest quarter moving further into negative territory. Unitech's -18.89% margin was 30.12 percentage points below the 11.23% median among 329 Consumer Discretionary peers that had reported. It ranked 18th from the bottom on this measure.
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 | ₹108 cr | ₹106 cr | +1.63% |
| Other income | ₹13 cr | ₹15 cr | -10.51% |
| Expenses | ₹128 cr | ₹100 cr | +28.26% |
| Operating profit | ₹-20 cr | ₹6 cr | — |
| Operating margin (%) | -18.89% | 5.79% | — |
| Interest | ₹800 cr | ₹722 cr | +10.78% |
| Depreciation | ₹1 cr | ₹1 cr | +6.06% |
| Profit before tax | ₹-809 cr | ₹-703 cr | -15.09% |
| Tax | ₹-0 cr | ₹0 cr | — |
| Net profit | ₹-808 cr | ₹-703 cr | -15.03% |
| EPS (₹) | ₹-2.57 | ₹-2.18 | -17.89% |
Operating margin of -18.89% compares with a Consumer Discretionary sector median of 11.23% across 329 peers that have reported Q2FY27.
What to watch
- Whether operating margin recovers from -18.89% after the 24.68 percentage-point qoq decline.
- Whether expense growth moderates from 28.26% qoq while revenue growth remains at 1.63%.
- Whether interest falls from Rs 800.30 cr after its 10.78% qoq increase.