Banka Bioloo’s operating margin improves, but profit remains thin
Revenue grew faster than expenses sequentially, while other income and a lower tax rate materially shaped the reported profit.
Filed 12 Nov 2026, 14:47 IST · Banka Bioloo Ltd (BANKA)
Key takeaways
- Consolidated revenue rose 11.47% sequentially and operating profit grew 25.27%, lifting operating margin by 2.16 percentage points.
- Profit before tax turned positive at Rs 0.18 cr from a loss of Rs 0.09 cr, but other income contributed 55.56% of pre-tax profit.
- The 19.38% operating margin was 7.87 percentage points above the 11.51% median for 230 Industrials peers that had reported.
Price around the results
Revenue growth lifts operating profit in Q2FY27
In consolidated Q2FY27, revenue increased 11.47% sequentially to Rs 11.76 cr, while expenses grew 8.59% to Rs 9.48 cr. The faster revenue growth lifted operating profit by 25.27% to Rs 2.28 cr. This was a sequential improvement after the Rs 0.04 cr consolidated net loss in Q1FY27.
Operating gains were partly absorbed below the operating line
Operating margin expanded by 2.16 percentage points to 19.38% because expenses grew more slowly than revenue. Interest rose 2.59% and depreciation increased 18.82%, keeping profit before tax at only Rs 0.18 cr despite the operating improvement. Other income accounted for 55.56% of pre-tax profit, while the tax rate fell 25.67 percentage points to 28.58%, also supporting the return to a Rs 0.13 cr net profit.
Management links expansion to recurring revenue and cash generation
Management said FY27 is focused on converting the platform into recurring revenue, cash and sustainable profit. It said about Rs 70 cr of the order book has been identified for execution over the next 12 months, while cautioning that this is not guaranteed revenue. The presentation said Megaliter had 16 contracted projects, including 13 commissioned and three under work in progress, and that all 25-plus STP sites are planned to be online in Q3. Management also identified long cash cycles in government and Rail orders, while saying the mix is moving towards Category A+ private clients.
Shares fell despite margin outperformance versus Industrials peers
The stock fell 4.99% on the results date, with traded volume at 0.5 times the reference level. There is no recent post-results history in the reported comparison, so the move cannot be classified as ordinary or unusual for this stock. Its 19.38% operating margin nevertheless stood 7.87 percentage points above the 11.51% median among 230 Industrials peers that had reported.
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 | ₹12 cr | ₹11 cr | +11.47% |
| Other income | ₹0 cr | ₹0 cr | -9.09% |
| Expenses | ₹9 cr | ₹9 cr | +8.59% |
| Operating profit | ₹2 cr | ₹2 cr | +25.27% |
| Operating margin (%) | 19.38% | 17.22% | — |
| Interest | ₹1 cr | ₹1 cr | +2.59% |
| Depreciation | ₹1 cr | ₹1 cr | +18.82% |
| Profit before tax | ₹0 cr | ₹-0 cr | — |
| Tax | ₹0 cr | ₹-0 cr | — |
| Net profit | ₹0 cr | ₹-0 cr | — |
| EPS (₹) | ₹0.12 | ₹-0.01 | — |
Operating margin of 19.38% compares with a Industrials sector median of 11.51% across 230 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -4.99% | -5.17% |
Volume on the results session was 0.50× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- FY27 is focused on converting the platform into recurring revenue, cash and sustainable profit.
- About ₹70 Cr of the order book is identified for execution over the next 12 months, but this is not guaranteed revenue.
Planned next quarter
- All 25-plus STP sites are planned to be online in Q3.
Expansion
- Megaliter has 16 contracted projects with 13 commissioned and three under work in progress.
- Megaliter incurred ₹1,243 L of H1 capex, funded partly through outside equity and net borrowings.
Competition
- The order mix is shifting toward Category A+ private clients, reducing reliance on government and Rail orders.
Problems & risks
- The company identifies government and Rail orders as having long cash cycles.
- The consolidated business bears ₹220 L of finance cost and depreciation as the cost of building its infrastructure base.
What to watch
- Whether operating margin holds above 19.38% as interest and depreciation remain material costs.
- Whether the identified Rs 70 cr order book begins converting into reported revenue and cash.
- Whether all 25-plus STP sites are online in Q3, as management said.