BF Utilities narrows loss as operating margin improves sharply
Revenue rose 10.54% sequentially while expenses fell 16.30%, but the standalone operating margin remained deeply negative at -47.61%.
Filed 06 Nov 2026, 16:09 IST · after market close · BF Utilities Ltd (BFUTILITIE)
Key takeaways
- Standalone operating loss narrowed by 44.54% sequentially as revenue grew 10.54% and expenses fell 16.30%.
- Operating margin improved 47.38 percentage points to -47.61%, but remained 66.92 percentage points below the 19.31% median for 59 reporting Services peers.
- Net loss narrowed to Rs 2.52 cr from Rs 5.03 cr, while other income contributed 26.67% of the pre-tax loss on a reported basis.
Price around the results
Revenue recovery did not yet close the operating loss
BF Utilities reported standalone revenue of Rs 6.5 cr in Q2FY27, up 10.54% sequentially, while its operating loss narrowed to Rs 3.1 cr from Rs 5.59 cr. Net loss also reduced to Rs 2.52 cr from Rs 5.03 cr, but the business remained loss-making at the operating level.
Lower costs drove the margin improvement
Expenses fell 16.30% sequentially even as revenue increased, which lifted operating margin by 47.38 percentage points to -47.61%. Other income was Rs 0.68 cr, but the company still reported a pre-tax loss of Rs 2.55 cr; the reported tax rate was 1.27%, up 1.68 percentage points from the previous quarter.
Margin improved for a third straight quarter but stayed last among peers
Operating margin improved from -321.12% in Q4FY26 to -94.99% in Q1FY27 and -47.61% in Q2FY27, marking three consecutive quarters of improvement. It was nevertheless 66.92 percentage points below the 19.31% median among 59 Services companies that had reported, placing BF Utilities at the bottom of that comparison.
Results were filed after market close
The standalone results were filed after market close on 6 November 2026. There is no reported post-results market reaction yet, so the quarter's market response cannot be assessed.
Q2FY27 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹7 cr | ₹6 cr | +10.54% |
| Other income | ₹1 cr | ₹1 cr | -5.56% |
| Expenses | ₹10 cr | ₹11 cr | -16.30% |
| Operating profit | ₹-3 cr | ₹-6 cr | +44.54% |
| Operating margin (%) | -47.61% | -94.99% | — |
| Interest | ₹0 cr | ₹0 cr | — |
| Depreciation | ₹0 cr | ₹0 cr | +0.00% |
| Profit before tax | ₹-3 cr | ₹-5 cr | +49.10% |
| Tax | ₹-0 cr | ₹0 cr | — |
| Net profit | ₹-3 cr | ₹-5 cr | +49.90% |
| EPS (₹) | ₹0.66 | ₹-1.34 | — |
Operating margin of -47.61% compares with a Services sector median of 19.31% across 59 peers that have reported Q2FY27.
What to watch
- Whether operating margin improves from -47.61% in the next quarter.
- Whether expenses remain below the Q2FY27 level of Rs 9.6 cr.
- Whether revenue growth continues after the 10.54% sequential increase.