BAG Films profit falls 66.11% as costs outpace revenue decline
Revenue fell 10.99% sequentially, while the tax rate rose 3.86 percentage points and operating margin dropped to 12.30%.
Filed 05 Nov 2026, 20:28 IST · after market close · B A G Films & Media Ltd (BAGFILMS)
Key takeaways
- Consolidated revenue fell 10.99% sequentially, while expenses declined only 4.11%, narrowing operating margin by 6.28 percentage points.
- Net profit dropped 66.11% sequentially as the tax rate rose 3.86 percentage points, despite interest expense falling 12.50%.
- Operating margin at 12.30% was 0.74 percentage points above the 11.56% median for 262 Consumer Discretionary peers that reported.
Price around the results
Revenue decline cuts into Q2FY27 profit
BAG Films’ consolidated revenue fell 10.99% sequentially to Rs 34.35 cr, and operating profit declined 41.14% to Rs 4.22 cr. Net profit fell 66.11% to Rs 1.21 cr, with EPS dropping 76.47% to Rs 0.04.
Costs drove the 6.28-point margin drop
Expenses fell 4.11% sequentially, less than the 10.99% decline in revenue, so operating margin narrowed by 6.28 percentage points to 12.30%. Interest expense fell 12.50%, but the tax rate increased by 3.86 percentage points to 18.50%, adding pressure below operating profit. Other income contributed only 1.34% of pre-tax profit, so it was not a material support to reported earnings.
Margin rebounds in Q1, then gives back the gain
Operating margin rose from 14.43% in Q4FY26 to 18.58% in Q1FY27 before falling to 12.30% in Q2FY27, so the latest decline follows a one-quarter improvement rather than a third straight fall. The latest margin remained 0.74 percentage points above the 11.56% median among 262 reported Consumer Discretionary peers.
After-close filing leaves market response pending
The consolidated results were filed after market close on 05 November 2026. The filing timing means there is no post-results market reaction to assess yet.
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 | ₹34 cr | ₹39 cr | -10.99% |
| Other income | ₹0 cr | ₹0 cr | +100.00% |
| Expenses | ₹30 cr | ₹31 cr | -4.11% |
| Operating profit | ₹4 cr | ₹7 cr | -41.14% |
| Operating margin (%) | 12.30% | 18.58% | — |
| Interest | ₹2 cr | ₹2 cr | -12.50% |
| Depreciation | ₹1 cr | ₹1 cr | +7.35% |
| Profit before tax | ₹1 cr | ₹4 cr | -64.35% |
| Tax | ₹0 cr | ₹1 cr | -55.74% |
| Net profit | ₹1 cr | ₹4 cr | -66.11% |
| EPS (₹) | ₹0.04 | ₹0.17 | -76.47% |
Operating margin of 12.30% compares with a Consumer Discretionary sector median of 11.56% across 262 peers that have reported Q2FY27.
What to watch
- Whether operating margin recovers from 12.30% after the Q2FY27 decline.
- Whether expenses begin falling faster than revenue after the 4.11% expense decline versus a 10.99% revenue decline.
- Whether the tax rate moves back from 18.50% toward the 14.64% reported in Q1FY27.