Bedmutha’s profit falls 95.66% QoQ as interest costs rise 34.73%
Revenue grew 10.00%, but faster cost growth and higher interest left other income equal to 1,100.00% of pre-tax profit.
Filed 06 Nov 2026, 15:00 IST · Bedmutha Industries Ltd (BEDMUTHA)
Key takeaways
- Consolidated revenue increased 10.00% QoQ, but operating margin narrowed 0.66 percentage points as expenses grew 10.74%.
- Net profit dropped 95.66% QoQ as interest rose 34.73% and depreciation rose 29.70%, leaving EPS at Rs 0.09.
- At 2.62%, operating margin was 8.88 percentage points below the 11.50% median for 197 Industrials peers.
Price around the results
Revenue growth did not translate into profit
Bedmutha’s consolidated revenue rose 10.00% QoQ to Rs 595.55 cr, but net profit fell 95.66% to Rs 0.30 cr. The earnings squeeze came despite higher revenue because operating profit declined 12.05%, taking EPS down to Rs 0.09 from Rs 2.15.
Higher costs and interest drove the margin squeeze
Expenses grew 10.74%, faster than revenue, which narrowed operating margin by 0.66 percentage points to 2.62%. Interest costs rose 34.73% and depreciation increased 29.70%, reducing profit before tax to Rs 0.30 cr from Rs 6.92 cr. With a zero tax rate, the reported tax rate did not cushion the decline. Other income was 1,100.00% of pre-tax profit, making earnings quality a key concern this quarter.
Operating margin lagged the Industrials peer set
Bedmutha’s 2.62% operating margin was 8.88 percentage points below the 11.50% median among 197 Industrials companies that had reported the same quarter. The sequential decline from 3.28% marks a further deterioration from the previous quarter, although the available comparison covers only Q1FY27 and Q2FY27.
Initial market reaction was mildly negative
The stock was down 0.05% on the initial results-day move and underperformed the market by 2.06%. Trading volume was 0.69 times the reference average, indicating a limited initial price move.
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 | ₹596 cr | ₹541 cr | +10.00% |
| Other income | ₹3 cr | ₹3 cr | +3.12% |
| Expenses | ₹580 cr | ₹524 cr | +10.74% |
| Operating profit | ₹16 cr | ₹18 cr | -12.05% |
| Operating margin (%) | 2.62% | 3.28% | — |
| Interest | ₹12 cr | ₹9 cr | +34.73% |
| Depreciation | ₹7 cr | ₹5 cr | +29.70% |
| Profit before tax | ₹0 cr | ₹7 cr | -95.66% |
| Tax | ₹0 cr | ₹0 cr | — |
| Net profit | ₹0 cr | ₹7 cr | -95.66% |
| EPS (₹) | ₹0.09 | ₹2.15 | -95.81% |
Operating margin of 2.62% compares with a Industrials sector median of 11.50% across 197 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -0.05% | -2.06% |
Volume on the results session was 0.69× its 20-day average.
What to watch
- Whether operating margin holds above 2.62% after falling 0.66 percentage points QoQ.
- Whether expenses grow slower than the 10.00% revenue increase recorded this quarter.
- Whether interest costs moderate from the 34.73% QoQ increase.