Cineline India Q2 FY27 Results (NSE: CINELINE)

2 Nov 2026 · Analysis by Alpha Inflection

Signal: Steady quarter

The read

The operating inflection is genuine at the gross-profit level: Q2 revenue reached ₹7,068.69 lakh, +14.0% YoY, while gross margin expanded 458bps to 67.4% and derived EBITDA margin reached 29.2% versus 19.3% YoY. However, the earnings trajectory is less clean than PAT growth of 254.9% suggests because other income was ₹497.43 lakh, exceptional income added ₹50 lakh, equity dilution held EPS growth to 66.9%, and H1 operating cash flow fell to ₹473.41 lakh from ₹516.85 lakh.

P&L walk

Standalone revenue increased to ₹7,068.69 lakh, +14.0% YoY and +19.3% sequentially, while EBITDA margin was 29.2%; PAT rose 254.9% YoY but benefited from ₹50 lakh exceptional income and elevated other income.

Key positives

• Revenue increased to ₹7,068.69 lakh, +14.0% YoY and +19.3% QoQ, accelerating from ₹5,927.46 lakh in Q1FY27.
• Gross margin expanded 458bps YoY to 67.4% as movie exhibition plus F&B costs fell to 32.6% of revenue from 37.2%.
• Derived EBITDA rose to ₹2,062.61 lakh from ₹1,196.65 lakh YoY, taking EBITDA margin to 29.2% from 19.3%.
• Finance costs declined 17.4% YoY to ₹260.35 lakh and 29.4% QoQ, improving operating-to-profit conversion.

Key concerns

• PAT of ₹726.17 lakh includes ₹50 lakh exceptional income and ₹497.43 lakh of other income, so reported profit growth of 254.9% overstates recurring operating momentum.
• EPS rose 66.9% to ₹1.97 versus PAT growth of 254.9% because equity share capital increased to ₹1,905.63 lakh after warrant conversion.
• H1 operating cash flow declined to ₹473.41 lakh from ₹516.85 lakh despite H1 profit before tax increasing to ₹869.61 lakh from ₹230.63 lakh.
• Other expenses increased 20.4% YoY to ₹2,090.73 lakh, faster than revenue growth of 14.0%.

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