Operating loss narrows sharply, but Bharat Coking Coal remains in the red
Sequential improvement came from a 23.18% fall in expenses, but Rs 135.97 cr of other income did not offset the interest and depreciation burden.
Filed 22 Jul 2026, 01:37 IST · Bharat Coking Coal Ltd (BHARATCOAL)
Key takeaways
- Operating margin recovered 42.44 percentage points QoQ to -0.48%, as expenses fell 23.18% while revenue rose 9.27%.
- Bharat Coking Coal still reported a standalone net loss of Rs 68.09 cr, despite a Rs 34.98 cr tax credit.
- The stock fell 6.90% on results day, while operating margin remained 15.97 percentage points below the Energy peer median.
Price around the results
Standalone operating loss narrows after Q4 spike
Revenue increased 9.27% QoQ to Rs 3,587.27 cr, while expenses fell 23.18% to Rs 3,604.48 cr. That combination narrowed the operating loss to Rs 17.21 cr from Rs 1,409.06 cr in Q4FY26. Operating margin therefore improved 42.44 percentage points, although it remained negative at -0.48%.
Tax credit and other income shaped the reported loss
Other income fell 75.57% QoQ to Rs 135.97 cr, yet it still represented -131.92% of pre-tax profit because pre-tax profit remained negative. Interest declined 7.47% and depreciation fell 15.91%, but the company still reported a Rs 103.07 cr pre-tax loss. The Rs 34.98 cr tax credit reduced the net loss, with the tax rate moving 77.97 percentage points from -44.03% to 33.94%.
Margin recovered from Q4 but trails Energy peers
Operating margin moved from -9.62% in Q3FY26 to -42.92% in Q4FY26 before recovering to -0.48% in Q1FY27. This marks a sharp sequential recovery rather than a continuing decline, but the margin was still 15.97 percentage points below the 15.49% median of six Energy peers that had reported.
Shares fell 6.90% on the filing date
The stock fell 6.90% on July 22, with a 3.84% opening gap and volume at 1.9 times its reference level. The market reaction came despite the sharp QoQ improvement in operating performance, as the quarter still ended with a standalone net loss and negative operating margin.
Q1FY27 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹3,587 cr | ₹3,283 cr | +9.27% |
| Other income | ₹136 cr | ₹557 cr | -75.57% |
| Expenses | ₹3,604 cr | ₹4,692 cr | -23.18% |
| Operating profit | ₹-17 cr | ₹-1,409 cr | +98.78% |
| Operating margin (%) | -0.48% | -42.92% | — |
| Interest | ₹48 cr | ₹52 cr | -7.47% |
| Depreciation | ₹126 cr | ₹150 cr | -15.91% |
| Profit before tax | ₹-103 cr | ₹19 cr | — |
| Tax | ₹-35 cr | ₹-8 cr | -319.42% |
| Net profit | ₹-68 cr | ₹27 cr | — |
| EPS (₹) | ₹-0.15 | ₹0.06 | — |
Operating margin of -0.48% compares with a Energy sector median of 15.49% across 6 peers that have reported Q1FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -6.90% | -6.11% |
| Next session | -7.12% | — |
Volume on the results session was 1.90× its 20-day average.
What to watch
- Whether operating margin improves from -0.48% after the 42.44-point QoQ recovery.
- Whether revenue growth continues after the 9.27% QoQ increase.
- Whether the company moves beyond the Rs 68.09 cr standalone net loss without relying on a tax credit.