Bharat Coking Coal swings back to operating profit, but quality is mixed
Revenue grew faster than expenses sequentially, but other income remained the main support for pre-tax profit.
Filed 25 Oct 2026, 14:19 IST · after market close · Bharat Coking Coal Ltd (BHARATCOAL)
Key takeaways
- Standalone operating margin recovered 6.34 percentage points QoQ to 4.54% as revenue grew +23.01% while expenses grew +15.35%.
- Net profit returned at Rs 123.74 cr from a Rs 68.09 cr loss in Q1FY27, but other income contributed 85.35% of pre-tax profit.
- The stock's initial response was +4.33%, against declines after each of the last three results and a 5.05% median absolute move.
Price around the results
Revenue growth restored standalone operating profit
Bharat Coking Coal's standalone revenue rose +23.01% QoQ, outpacing the +15.35% increase in expenses and reversing the operating loss reported in Q1FY27. That operating improvement lifted net profit to Rs 123.74 cr from a Rs 68.09 cr loss. Interest was broadly stable, rising +0.85%, while depreciation fell -1.50%.
Other income remains central to reported profit
Other income rose +16.62% QoQ to Rs 158.57 cr and accounted for 85.35% of pre-tax profit, making the reported return to profit less representative of operating earnings. The tax rate fell 0.55 percentage points to 33.39%, providing a modest additional benefit to net profit. Operating profit was Rs 200.30 cr, compared with other income of Rs 158.57 cr.
Margin recovered but remained last among seven Energy peers
Operating margin improved from -1.80% in Q1FY27 to 4.54%, following -10.21% in Q4FY26 and 1.21% in Q3FY26. The recovery therefore breaks the recent deterioration, but margin remains 11.03 percentage points below the 15.57% median for the seven Energy peers that have reported. Bharat Coking Coal ranked first from the bottom on this comparison.
Initial share rise breaks the recent post-results pattern
The stock rose +4.33% in the initial response, with the opening gap at +4.81% and volume at 9.18 times the reference level. This contrasts with declines after each of the last three results, when the median absolute move was 5.05%. The current move was therefore positive in direction but smaller than the stock's typical recent post-results move.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹4,413 cr | ₹3,587 cr | +23.01% |
| Other income | ₹159 cr | ₹136 cr | +16.62% |
| Expenses | ₹4,212 cr | ₹3,652 cr | +15.35% |
| Operating profit | ₹200 cr | ₹-64 cr | — |
| Operating margin (%) | 4.54% | -1.80% | — |
| Interest | ₹49 cr | ₹48 cr | +0.85% |
| Depreciation | ₹124 cr | ₹126 cr | -1.50% |
| Profit before tax | ₹186 cr | ₹-103 cr | — |
| Tax | ₹62 cr | ₹-35 cr | — |
| Net profit | ₹124 cr | ₹-68 cr | — |
| EPS (₹) | ₹0.27 | ₹-0.15 | — |
Operating margin of 4.54% compares with a Energy sector median of 15.57% across 7 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +4.33% | +3.66% |
Volume on the results session was 9.18× its 20-day average.
What to watch
- Whether standalone operating margin holds above 4.54%.
- Whether other income's contribution to pre-tax profit falls from 85.35%.
- Whether revenue growth continues to outpace the +15.35% QoQ increase in expenses.