Zee Learn slips into Q2 loss as revenue falls and tax rate spikes
Revenue fell -41.47% QoQ, while slower cost reduction, higher interest and a 431.39% tax rate weakened earnings.
Filed 23 Oct 2026, 21:11 IST · after market close · Zee Learn Ltd (ZEELEARN)
Key takeaways
- Zee Learn's consolidated revenue fell 41.47% QoQ to Rs 54.62 cr, while operating margin narrowed 4.26 percentage points to 30.65%.
- A tax rate of 431.39% turned profit before tax of Rs 0.51 cr into a net loss of Rs 1.72 cr.
- The stock fell 3.81% on 23 October, while Zee Learn's operating margin remained 18.23 percentage points above the 12.42% median for 50 reported sector peers.
Price around the results
Q2FY27 revenue drop weakened operating momentum
Zee Learn's consolidated revenue fell 41.47% QoQ to Rs 54.62 cr, and operating profit declined 48.62% to Rs 16.74 cr. Expenses fell 37.64%, less than the revenue decline, so operating margin narrowed by 4.26 percentage points to 30.65%. This marks a sequential deterioration from Q1FY27's 34.91% margin.
Higher financing cost and tax drove the loss
Interest expense rose 13.04% QoQ and depreciation increased 3.54%, adding pressure below operating profit. Profit before tax fell 96.98% to Rs 0.51 cr, while other income rose 23.10% to Rs 4.85 cr and represented 950.98% of pre-tax profit. The Rs 2.2 cr tax charge produced a 431.39% tax rate and pushed net profit to a Rs 1.72 cr loss.
Margin stayed above the reported peer median
Zee Learn's 30.65% operating margin was 18.23 percentage points above the 12.42% median among 50 Consumer Discretionary peers that had reported the same quarter. The comparison does not offset the sequential margin decline, but it places the company above the reported sector midpoint on operating margin.
Shares fell after the quarterly filing
The stock declined 3.81% on 23 October, with a 0.52% opening gap and a 3.43% fall relative to the comparison market measure. Trading volume was 1.05 times the reference level. The results were filed after market close on 23 October.
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 | ₹55 cr | ₹93 cr | -41.47% |
| Other income | ₹5 cr | ₹4 cr | +23.10% |
| Expenses | ₹38 cr | ₹61 cr | -37.64% |
| Operating profit | ₹17 cr | ₹33 cr | -48.62% |
| Operating margin (%) | 30.65% | 34.91% | — |
| Interest | ₹9 cr | ₹8 cr | +13.04% |
| Depreciation | ₹12 cr | ₹12 cr | +3.54% |
| Profit before tax | ₹1 cr | ₹17 cr | -96.98% |
| Tax | ₹2 cr | ₹6 cr | -64.91% |
| Net profit | ₹-2 cr | ₹8 cr | — |
| EPS (₹) | ₹-0.05 | ₹0.26 | — |
Operating margin of 30.65% compares with a Consumer Discretionary sector median of 12.42% across 50 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -3.81% | -3.43% |
| Next session | -0.87% | — |
Volume on the results session was 1.05× its 20-day average.
What to watch
- Whether consolidated revenue moves above Rs 54.62 cr next quarter.
- Whether operating margin holds above 30.65% after the 4.26-percentage-point sequential decline.
- Whether the tax rate normalizes from 431.39% and net profit returns above zero.