Bharat Seats revenue jumps 22.74%, but costs outpace sales
Standalone Q2FY27 net profit rose 15.06% QoQ, while operating margin remained 7.86 percentage points below the sector-peer median.
Filed 27 Oct 2026, 13:31 IST · Bharat Seats Ltd (BHARATSE)
Key takeaways
- Standalone revenue rose +22.74% QoQ to Rs 709.22 cr, but expenses grew faster at +23.24%, limiting operating profit growth to +13.05%.
- Operating margin narrowed 0.39 percentage points to 4.49% as costs outpaced revenue, while the tax rate rose 0.86 percentage points to 26.28%.
- Bharat Seats' 4.49% operating margin was 7.73 percentage points below the 12.22% median for 65 reported Consumer Discretionary peers.
Price around the results
Revenue growth did not fully reach operating profit
On a standalone basis, revenue increased +22.74% QoQ to Rs 709.22 cr, while operating profit rose a slower +13.05% to Rs 31.87 cr. Net profit still increased +15.06% to Rs 15.20 cr, helped by the higher operating profit despite weaker conversion.
Faster cost growth narrowed the operating margin
Expenses grew +23.24% QoQ, faster than revenue, and operating margin narrowed from 4.88% to 4.49%, a decline of 0.39 percentage points. The tax rate rose 0.86 percentage points to 26.28%, while interest expense increased +3.20%. Other income contributed 4.17% of pre-tax profit, so it was not a major support to profit quality.
Margin remains below the Consumer Discretionary peer median
Bharat Seats' 4.49% operating margin was 7.73 percentage points below the 12.22% median among 65 Consumer Discretionary peers that had reported. The available quarter-on-quarter direction was negative, with margin declining from 4.88% in Q1FY27 to 4.49% in Q2FY27.
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 | ₹709 cr | ₹578 cr | +22.74% |
| Other income | ₹1 cr | ₹1 cr | -19.63% |
| Expenses | ₹677 cr | ₹550 cr | +23.24% |
| Operating profit | ₹32 cr | ₹28 cr | +13.05% |
| Operating margin (%) | 4.49% | 4.88% | — |
| Interest | ₹2 cr | ₹2 cr | +3.20% |
| Depreciation | ₹10 cr | ₹9 cr | +5.24% |
| Profit before tax | ₹21 cr | ₹18 cr | +16.37% |
| Tax | ₹5 cr | ₹5 cr | +20.44% |
| Net profit | ₹15 cr | ₹13 cr | +15.06% |
| EPS (₹) | ₹2.42 | ₹2.10 | +15.24% |
Operating margin of 4.49% compares with a Consumer Discretionary sector median of 12.22% across 65 peers that have reported Q2FY27.
What to watch
- Whether operating margin recovers above the 4.88% recorded in Q1FY27
- Whether expense growth falls below the +22.74% revenue growth rate
- Whether the tax rate eases from 26.28%