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
- Standalone operating loss narrowed sequentially as revenue grew 9.27% while expenses rose 0.93%, improving operating margin by 8.41 percentage points to -1.80%.
- Net profit swung to a loss of Rs 68.09 cr as other income fell 75.57% QoQ and represented -131.92% of profit before tax.
- Operating margin at -1.80% was 7.48 percentage points below the 5.68% median for seven reported Energy peers, while the stock fell 6.90% on results day.
Price around the results
Revenue growth helped narrow the operating loss
Bharat Coking Coal’s standalone revenue increased 9.27% QoQ, while expenses grew only 0.93%. That gap narrowed the operating loss and lifted operating margin by 8.41 percentage points from Q4FY26, although the margin remained negative at -1.80%.
Other income drove the swing below the tax line
Other income dropped 75.57% QoQ to Rs 135.97 cr from Rs 556.55 cr, more than offsetting the operating recovery and pushing profit before tax into a loss of Rs 103.07 cr. Interest declined 7.47% and depreciation fell 15.91%, but those savings were not enough to offset the lower non-operating income. A tax credit of Rs 34.98 cr reduced the reported net loss, with the tax rate moving from -44.03% to 33.94%.
Margin recovered from Q4 but stayed below peers
Operating margin moved from 1.21% in Q3FY26 to -10.21% in Q4FY26 before recovering to -1.80% in Q1FY27. The latest margin was still 7.48 percentage points below the 5.68% median among seven Energy peers that had reported, placing the company third from the bottom.
Shares fell sharply on the results session
The stock declined 6.90% on the results day after opening 3.84% lower, while traded volume was 1.90 times the reference level. The negative market response came despite the sequential improvement in operating margin, reflecting the swing from Q4FY26 profit to Q1FY27 loss.
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 | ₹3,652 cr | ₹3,618 cr | +0.93% |
| Operating profit | ₹-64 cr | ₹-335 cr | +80.77% |
| Operating margin (%) | -1.80% | -10.21% | — |
| 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 -1.80% compares with a Energy sector median of 5.68% across 7 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 -1.80% toward the 5.68% Energy-peer median.
- Whether other income stays near Rs 135.97 cr after Rs 556.55 cr in Q4FY26.
- Whether expenses remain close to the 0.93% QoQ growth recorded in Q1FY27.