Balkrishna Paper’s operating margin falls to -12.33% in Q2
Revenue declined faster than expenses sequentially, while reported net profit turned positive despite a continued pre-tax loss.
Filed 30 Oct 2026, 17:28 IST · after market close · Balkrishna Paper Mills Ltd (BALKRISHNA)
Key takeaways
- Standalone operating margin narrowed 3.28 percentage points to -12.33% as revenue fell faster than expenses sequentially.
- Reported net profit turned positive at Rs 1.86 cr from a loss of Rs 1.80 cr, despite pre-tax loss widening slightly to Rs 1.44 cr.
- The company's operating margin was 27.66 percentage points below the 15.33% median for 54 reported commodities peers.
Price around the results
Revenue decline outpaced the cost reduction
Balkrishna Paper Mills reported standalone revenue of Rs 1.51 cr in Q2FY27, down 14.20% sequentially. Expenses fell 11.46%, so they declined less than revenue and operating margin worsened by 3.28 percentage points to -12.33%. Operating profit remained negative at Rs 0.19 cr.
Net profit rose despite a continuing pre-tax loss
Reported net profit was Rs 1.86 cr versus a loss of Rs 1.80 cr in Q1FY27, even as profit before tax remained negative and widened slightly from Rs 1.43 cr to Rs 1.44 cr. Interest expense fell 2.31%, while the tax rate stayed at 0.00%; other income was only -1.39% of pre-tax profit. The gap between the reported net profit and pre-tax result makes the profit turnaround the main quality issue in the quarter.
Operating margin was near the bottom of its peer group
Balkrishna's -12.33% operating margin was 27.66 percentage points below the 15.33% median for 54 commodities peers that had reported the quarter. The company ranked second from the bottom on this measure. With only Q1FY27 available for comparison, the sequential decline is clear, but a longer multi-quarter direction cannot be established here.
Results were filed after market close
The standalone results were filed after market close on 30 October 2026. There is no post-results market reaction to assess yet.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹2 cr | ₹2 cr | -14.20% |
| Other income | ₹0 cr | ₹0 cr | -33.33% |
| Expenses | ₹2 cr | ₹2 cr | -11.46% |
| Operating profit | ₹-0 cr | ₹-0 cr | -18.75% |
| Operating margin (%) | -12.33% | -9.05% | — |
| Interest | ₹1 cr | ₹1 cr | -2.31% |
| Depreciation | ₹0 cr | ₹0 cr | — |
| Profit before tax | ₹-1 cr | ₹-1 cr | -0.70% |
| Tax | ₹0 cr | ₹0 cr | — |
| Net profit | ₹2 cr | ₹-2 cr | — |
| EPS (₹) | ₹0.57 | ₹-0.56 | — |
Operating margin of -12.33% compares with a Commodities sector median of 15.33% across 54 peers that have reported Q2FY27.
What to watch
- Whether revenue recovers from Rs 1.51 cr after its 14.20% sequential decline.
- Whether operating margin moves back above -12.33%.
- Whether reported net profit remains positive while pre-tax profit is negative.