Bharat Gear lifts margin as revenue growth outpaces expenses
Standalone operating margin rose 1.61 percentage points quarter-on-quarter, but other income still accounted for 17.10% of pre-tax profit.
Filed 30 Oct 2026, 14:43 IST · BHARATGEAR (BHARATGEAR)
Key takeaways
- Standalone revenue grew 10.44% quarter-on-quarter, outpacing expense growth of 8.59%.
- Operating margin improved by 1.61 percentage points to 5.38% as costs grew more slowly than revenue.
- Other income contributed 17.10% of pre-tax profit, while the tax rate fell 0.72 percentage points to 24.62%.
Revenue growth improves operating leverage
Bharat Gear’s standalone revenue rose 10.44% quarter-on-quarter to Rs 238.17 cr, while expenses increased 8.59% to Rs 225.36 cr. The faster revenue growth lifted operating profit 57.76% to Rs 12.81 cr and raised operating margin by 1.61 percentage points to 5.38%.
Lower tax and other income supported profit
Net profit rose to Rs 4.10 cr from Rs 0.15 cr in Q1FY27, helped by the much higher operating profit and a 0.72 percentage-point decline in the tax rate to 24.62%. Profit quality was mixed: other income of Rs 0.93 cr represented 17.10% of pre-tax profit, while interest expense increased 7.38% quarter-on-quarter.
Margin direction turns positive from Q1FY27
Operating margin moved up from 3.77% in Q1FY27 to 5.38% in Q2FY27, showing sequential improvement after the weak first-quarter margin. The quarter’s net profit and EPS growth rates are amplified by the low Q1FY27 base, when net profit was Rs 0.15 cr and EPS was Rs 0.10.
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 | ₹238 cr | ₹216 cr | +10.44% |
| Other income | ₹1 cr | ₹0 cr | +126.83% |
| Expenses | ₹225 cr | ₹208 cr | +8.59% |
| Operating profit | ₹13 cr | ₹8 cr | +57.76% |
| Operating margin (%) | 5.38% | 3.77% | — |
| Interest | ₹3 cr | ₹3 cr | +7.38% |
| Depreciation | ₹5 cr | ₹5 cr | -5.12% |
| Profit before tax | ₹5 cr | ₹0 cr | +2620.00% |
| Tax | ₹1 cr | ₹0 cr | +2580.00% |
| Net profit | ₹4 cr | ₹0 cr | +2633.33% |
| EPS (₹) | ₹2.67 | ₹0.10 | +2570.00% |
What to watch
- Whether operating margin holds above 5.38% in the next quarter.
- Whether revenue growth continues to outpace expense growth of 8.59%.
- Whether other income remains below its current 17.10% share of pre-tax profit.