BEML swings back to loss as Q1 operating margin falls to 0.24%
Revenue fell 54.32% sequentially and costs declined more slowly, while the 4.05% stock rise was smaller than its 6.4% typical result-day move.
Filed 07 Aug 2026, 12:35 IST · BEML Ltd (BEML)
Key takeaways
- Consolidated operating margin fell 14.89 percentage points sequentially to 0.24% as revenue dropped 54.32% and expenses fell 46.30%.
- Year-on-year revenue rose 29.28% while expenses rose 19.67%, lifting operating margin by 8.01 percentage points, but net loss remained Rs 27.01 cr.
- The stock rose 4.05% after the results, despite falling after seven of its previous eight result announcements, with a 6.4% median absolute move.
Price around the results
Q1 loss follows a sharp reversal from Q4
BEML reported a consolidated net loss of Rs 27.01 cr in Q1FY27, against a net profit of Rs 179.82 cr in Q4FY26. Revenue fell 54.32% sequentially to Rs 819.62 cr, while expenses declined 46.30%, leaving little operating profit. The year-on-year comparison was better, with revenue up 29.28% and the net loss narrowing from Rs 64.11 cr.
Costs fell slower than revenue and erased the Q4 margin
The sequential revenue decline was steeper than the fall in expenses, so operating margin narrowed 14.89 percentage points to 0.24%. Interest was broadly stable sequentially at Rs 13.87 cr, while depreciation rose 4.09% to Rs 23.39 cr, adding to the pressure below operating profit. A tax benefit of Rs 6.70 cr reduced the reported loss, but other income was only 1.57 cr and represented -4.66% of pre-tax profit, so it did not provide meaningful earnings support.
Margin remains near the bottom of the industrial peer set
However, the 0.24% margin was 14.26 percentage points below the 14.5% median for 82 Industrials peers that had reported, placing BEML second from the bottom. The quarterly trend remains volatile: margin moved from 8.72% in Q2FY26 to 0.33% in Q3FY26, 15.13% in Q4FY26 and back to 0.24% in Q1FY27.
Positive reaction was unusual in direction but modest in size
The stock rose 4.05% on the results date, with the reaction showing a 6.89 volume ratio. That direction differs from the company's recent pattern: seven of eight result reactions were down. The move was also smaller than the 6.4% median absolute move after past results.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹820 cr | ₹1,794 cr | -54.32% | +29.28% |
| Other income | ₹2 cr | ₹10 cr | -84.25% | -81.68% |
| Expenses | ₹818 cr | ₹1,523 cr | -46.30% | +19.67% |
| Operating profit | ₹2 cr | ₹272 cr | -99.27% | — |
| Operating margin (%) | 0.24% | 15.13% | — | — |
| Interest | ₹14 cr | ₹14 cr | -1.42% | +41.39% |
| Depreciation | ₹23 cr | ₹22 cr | +4.09% | +18.37% |
| Profit before tax | ₹-34 cr | ₹245 cr | — | +52.03% |
| Tax | ₹-7 cr | ₹65 cr | — | -8.59% |
| Net profit | ₹-27 cr | ₹180 cr | — | +57.87% |
| EPS (₹) | ₹-3.24 | ₹21.59 | — | +78.96% |
Operating margin of 0.24% compares with a Industrials sector median of 14.50% across 82 peers that have reported Q1FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +4.05% | +4.32% |
Volume on the results session was 6.89× its 20-day average.
What to watch
- Whether operating margin moves back above 0.24% after the 14.89 percentage-point sequential decline.
- Whether revenue recovers from Rs 819.62 cr without expenses again growing faster than revenue.
- Whether interest remains around Rs 13.87 cr as depreciation stands at Rs 23.39 cr.