Balmer Lawrie's costs outpaced revenue, narrowing its operating margin
Revenue momentum was positive, but costs grew faster and other income remained a material contributor to pre-tax profit.
Filed 02 Nov 2026, 19:15 IST · after market close · Balmer Lawrie & Company Ltd (BALMLAWRIE)
Key takeaways
- Consolidated revenue rose +6.94% QoQ, but expenses grew +7.07%, trimming operating margin by 0.10 percentage points.
- Net profit increased +11.36% QoQ to Rs 78.99 cr as interest expense declined -11.60%, although the tax rate rose 1.51 percentage points.
- Other income contributed 28.35% of pre-tax profit, making it a material part of reported earnings.
Price around the results
Costs edged ahead of revenue in Q2FY27
Balmer Lawrie's consolidated revenue rose +6.94% QoQ to Rs 800.72 cr, while expenses increased +7.07% to Rs 694.81 cr. The faster cost growth narrowed operating margin to 13.23%, a decline of 0.10 percentage points from Q1FY27. Operating profit still grew +6.11% QoQ, but more slowly than pre-tax profit.
Profit growth had support beyond operations
Pre-tax profit rose +13.59% QoQ, helped by a -11.60% decline in interest expense and a -1.57% decline in depreciation. Other income accounted for 28.35% of pre-tax profit, so reported earnings had a material non-operating contribution. The tax rate also rose 1.51 percentage points, providing no tax-rate lift to net profit.
Results were filed after market close
The consolidated results were filed after market close, so there is no post-results market reaction to assess yet. The next quarter will show whether the modest margin pressure persists and whether profit remains supported by other income.
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 | ₹801 cr | ₹749 cr | +6.94% |
| Other income | ₹30 cr | ₹25 cr | +18.61% |
| Expenses | ₹695 cr | ₹649 cr | +7.07% |
| Operating profit | ₹106 cr | ₹100 cr | +6.11% |
| Operating margin (%) | 13.23% | 13.33% | — |
| Interest | ₹11 cr | ₹13 cr | -11.60% |
| Depreciation | ₹19 cr | ₹20 cr | -1.57% |
| Profit before tax | ₹105 cr | ₹92 cr | +13.59% |
| Tax | ₹26 cr | ₹21 cr | +21.02% |
| Net profit | ₹79 cr | ₹71 cr | +11.36% |
| EPS (₹) | ₹4.64 | ₹4.18 | +11.00% |
What to watch
- Whether operating margin recovers from 13.23% after the 0.10-point QoQ decline.
- Whether expense growth stays below the Q2 revenue growth rate of +6.94%.
- Whether other income's 28.35% share of pre-tax profit remains material.