Choice International Ltd's Q2 FY27 numbers came in mixed, with revenue of Rs. 3,790.22 Cr (+35.87% YoY) and PAT growth of +23.02% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | November 02, 2026 |
|---|---|
| Revenue (Q2) | Rs. 3,790.22 Cr (+35.87% YoY) |
| PAT (Q2) | Rs. 694.72 Cr (+23.02% YoY) |
| EBITDA margin | 34.47% (-38 bps YoY) |
| EPS (Q2) | Rs. 3.12 (+13.45% YoY) |
Total income grew 33.41% YoY to Rs.379.02 Cr, exiting the prior three-quarter band, led by Advisory revenue up 82.83% YoY, and the Rs.900 Cr NHIS capital infusion was received October 27, 2026 ahead of a Q3 deployment push. However, management's margin guidance was missed (EBITDA margin 34.47%, −128 bps QoQ) as employee costs grew 45.22% YoY, PAT growth of 23.02% lagged the ~30% target, and H1 CFO was negative at −Rs.281.18 Cr with expansion funded by borrowings. NBFC remains a drag with PBT down 9.17% YoY and credit-loss allowances up to Rs.37.48 Cr in H1.
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| Revenue YoY growth | Up — "the flow backdrop supports YoY growth continuing" | +33.41% YoY total income | Played out |
| Sequential exit from flat ~Rs.300 Cr / Rs.60–70 Cr band | "the sequential exit from that run-rate is the open question" | Rs.379.02 Cr total income (+18.81% QoQ); PAT-owners Rs.67.02 Cr at top of band | Played out |
| Margin flat-to-compressing vs "sustain and expand" bar | Compression risk | 34.47% (−37.6 bps YoY, −128.0 bps QoQ) | Played out |
| Other income volatility | Swing line | Rs.6.15 Cr, −36.33% YoY | Played out |
| Advisory/IPO issuance tailwind | "strongest issuance backdrop of Choice's recent quarters" | Advisory revenue +82.83% YoY | Played out |
| NBFC asset-quality improvement leg to verify | Verify GNPA/NNPA | Not addressed in the filing — remains open for the call (segment PBT proxy −9.17% YoY) | Not observable |
| MTF/NHIS deployment | Q2 on pre-infusion balance sheet; "a Q3 story" | Confirmed — pre-infusion BS; Rs.900 Cr received Oct 27, 2026 | Played out |
| Bonus-issue decision on Nov 2 board agenda | Decision expected | 1:1 bonus recommended | Played out |
Read our full results preview.
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| "Growth will be there in Q2" | Q1 FY27 earnings call (Aug 11, 2026), CFO | Total income Rs.379.02 Cr, +33.41% YoY, +18.81% QoQ | Met |
| EBITDA margins "sustain and even expand further" | Q3 FY26 / Q4 FY26 earnings calls | 34.47% vs 34.84% YoY and 35.75% Q1 (−37.6 / −128.0 bps) | Missed |
| Group ~30% YoY revenue growth (medium term) | Q4 FY26 earnings call | +33.41% YoY total income | Met |
| Group ~30% YoY PAT growth (medium term) | Q4 FY26 earnings call | +23.02% PAT / +21.40% PAT-to-owners | Missed |
| Revenue/PAT growth 20–25% over next couple of years | Q3 FY26 earnings call | +33.4% revenue / +21.4–23.0% PAT this quarter | On Track |
| "Growth will be there in Q2" (quantum withheld) | Q1 FY27 earnings call | +33.41% YoY, +18.81% QoQ total income | Confirmed |
| EBITDA margins to sustain and expand as fixed costs grow slower than revenue | Q3 FY26 / Q4 FY26 calls | Margin −37.6 bps YoY, −128.0 bps QoQ; employee costs +45.2% YoY (+19.3% QoQ) | Contradicted |
| NBFC to deliver higher returns as it matures ("within a year") | Q4 FY26 call (response to analyst challenge) | NBFC segment PBT −9.17% YoY, margin 7.88% vs 9.36% | Not yet visible |
| "Significant growth from Q3 onwards" from NHIS capital + IPPB | Q1 FY27 call | Rs.900 Cr received Oct 27, 2026 (post-quarter); IPPB/MTF deployment not in this filing | Too Early |
| Sufficient internal accruals fund expansion | Q1 FY27 call | H1 CFO −Rs.281.18 Cr; funded by borrowings (+Rs.304.79 Cr) instead | Contradicted |
Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.