BCPL profit falls 68% as costs outpace revenue growth
Revenue rose 13.46% sequentially, but the operating margin dropped to 3.96% and other income made up 45.35% of pre-tax profit.
Filed 06 Nov 2026, 01:23 IST · BCPL Railway Infrastructure Ltd (BCPL)
Key takeaways
- Consolidated operating margin fell 4.60 percentage points QoQ to 3.96% as expenses grew 19.16%, faster than revenue at 13.46%.
- Consolidated net profit declined 67.67% QoQ to Rs 1.29 cr despite revenue rising 13.46%.
- Other income contributed 45.35% of consolidated profit before tax, while operating margin was 7.52 percentage points below the median of 180 Industrials peers.
Price around the results
Revenue growth failed to reach operating profit
BCPL reported consolidated revenue growth of 13.46% QoQ, but operating profit fell 47.51% to Rs 3.37 cr. The increase in sales therefore did not translate into earnings, with net profit declining 67.67% to Rs 1.29 cr. EPS fell 30.94% to Rs 1.25.
Costs and interest compressed the quarter
Expenses rose 19.16%, outpacing revenue growth and reducing operating margin by 4.60 percentage points to 3.96%. Interest expense also increased 4.47%, while depreciation was unchanged at Rs 0.55 cr. The tax rate fell 0.94 percentage points, providing only a partial offset to the weaker operating result.
Profit quality and peer position remain weak
Other income accounted for 45.35% of consolidated profit before tax, so reported pre-tax earnings were substantially supported by non-operating income. BCPL's 3.96% operating margin was 7.52 percentage points below the 11.48% median for 180 Industrials peers, placing it 19th from the bottom. Sequentially, the margin moved down from 8.56% in Q1FY27.
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 | ₹85 cr | ₹75 cr | +13.46% |
| Other income | ₹1 cr | ₹1 cr | -41.79% |
| Expenses | ₹82 cr | ₹69 cr | +19.16% |
| Operating profit | ₹3 cr | ₹6 cr | -47.51% |
| Operating margin (%) | 3.96% | 8.56% | — |
| Interest | ₹2 cr | ₹2 cr | +4.47% |
| Depreciation | ₹1 cr | ₹1 cr | +0.00% |
| Profit before tax | ₹2 cr | ₹5 cr | -68.27% |
| Tax | ₹0 cr | ₹1 cr | -69.23% |
| Net profit | ₹1 cr | ₹4 cr | -67.67% |
| EPS (₹) | ₹1.25 | ₹1.81 | -30.94% |
Operating margin of 3.96% compares with a Industrials sector median of 11.48% across 180 peers that have reported Q2FY27.
What to watch
- Whether operating margin recovers from 3.96% after the 4.60-percentage-point QoQ decline.
- Whether expense growth moderates from 19.16% relative to revenue growth of 13.46%.
- Whether other income remains a large contributor after accounting for 45.35% of profit before tax.