Birla Cable revenue jumps, but faster costs cut operating margin
Net profit rose +23.16% QoQ, while the stock gained +5.00% on the results day.
Filed 05 Nov 2026, 13:58 IST · Birla Cable Ltd (BIRLACABLE)
Key takeaways
- Revenue grew +33.07% QoQ, but expenses grew faster at +36.00%, reducing operating margin by 1.82 percentage points.
- Consolidated net profit rose +23.16% QoQ as the tax rate eased by 0.25 percentage points, while other income contributed 2.52% of pre-tax profit.
- Birla Cable’s 15.42% operating margin was 9.39 percentage points below the 24.81% median for 11 reported Telecommunication peers.
Price around the results
Revenue growth outpaced profit conversion
In consolidated Q2FY27, revenue rose +33.07% QoQ, but operating profit increased only +19.02%, showing weaker conversion of sales into operating earnings. Net profit still rose +23.16%, helped by the lower tax rate and the higher operating profit. Interest increased only +1.95% and depreciation was unchanged, so neither was a major source of the sequential profit movement.
Costs compressed the operating margin
Expenses grew +36.00% QoQ against revenue growth of +33.07%, taking operating margin down by 1.82 percentage points to 15.42%. The tax rate fell by 0.25 percentage points to 25.05%, providing a modest lift to net profit. Other income accounted for 2.52% of pre-tax profit, so the quarter’s earnings were largely operating-led rather than dependent on non-operating income.
Margin remains below the peer median
Operating margin declined from 17.24% in Q1FY27 to 15.42% in Q2FY27, marking a weaker sequential trend. It was 9.39 percentage points below the 24.81% median among 11 Telecommunication peers that had reported the quarter.
Shares rose on the filing day
The stock gained +5.00% on the results day, including a +3.70% opening gap and a +2.59% relative move. Trading volume was 1.82 times the reference level, indicating elevated activity around the filing.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹355 cr | ₹267 cr | +33.07% |
| Other income | ₹1 cr | ₹1 cr | +108.20% |
| Expenses | ₹300 cr | ₹221 cr | +36.00% |
| Operating profit | ₹55 cr | ₹46 cr | +19.02% |
| Operating margin (%) | 15.42% | 17.24% | — |
| Interest | ₹2 cr | ₹2 cr | +1.95% |
| Depreciation | ₹3 cr | ₹3 cr | +0.00% |
| Profit before tax | ₹50 cr | ₹41 cr | +22.78% |
| Tax | ₹13 cr | ₹10 cr | +21.66% |
| Net profit | ₹38 cr | ₹31 cr | +23.16% |
| EPS (₹) | ₹12.60 | ₹10.23 | +23.17% |
Operating margin of 15.42% compares with a Telecommunication sector median of 24.81% across 11 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +5.00% | +2.59% |
Volume on the results session was 1.82× its 20-day average.
What to watch
- Whether operating margin recovers from 15.42% after the 1.82-percentage-point QoQ decline.
- Whether expense growth moves below the current +36.00% pace against revenue growth of +33.07%.
- Whether other income remains a small share of pre-tax profit versus the current 2.52%.