Revenue grew 15.26% QoQ, but operating margin fell 2.85 points
Expenses rose 19.59%, outpacing revenue, while other income supplied 41.62% of pre-tax profit.
Filed 29 Oct 2026, 14:23 IST · Blackbuck Ltd (BLACKBUCK)
Key takeaways
- On a consolidated basis, revenue rose 15.26% QoQ, but operating profit increased only 1.81% as costs grew faster.
- Other income contributed 41.62% of consolidated pre-tax profit, making earnings quality an important consideration this quarter.
- Operating margin fell 2.85 percentage points QoQ to 21.50%, just below the 21.73% median for 21 reported Services peers.
Price around the results
Revenue momentum did not translate into profit growth
BlackBuck reported consolidated revenue growth of +15.26% QoQ to Rs 235.33 cr, but operating profit rose only +1.81% to Rs 50.61 cr. Net profit declined -1.83% to Rs 41.40 cr and EPS fell -1.73% to Rs 2.27. This was a sequential slowdown in earnings conversion rather than in revenue momentum.
Costs widened faster than revenue and other income remained material
Consolidated expenses increased +19.59% QoQ, ahead of the +15.26% revenue growth, narrowing operating margin by 2.85 percentage points to 21.50%. Depreciation rose +8.65%, partly offset by a -17.65% decline in interest expense. Other income accounted for 41.62% of pre-tax profit, so reported earnings were not driven entirely by operations; the tax rate also rose 3.43 percentage points QoQ to 3.32%.
Margin slipped below the Services peer median
BlackBuck’s 21.50% operating margin was 0.23 percentage points below the 21.73% median among 21 Services companies that had reported the quarter. The sequential margin trend was negative, falling from 24.35% in Q1FY27. Management said Q2 was seasonally a low quarter and that total expenses rose 36% year on year, mainly due to customer acquisition and Superloads investments.
Management highlighted expansion spending and business traction
Management said Vehicle Finance was on track to reach EBITDA break-even, supported by steady AUM growth and a stable cost base. It also said Superloads placements and revenue grew strongly through AI-driven productivity gains in existing cities and expansion-city scaling, while planned investment in the business continued. The company said telematics reached new highs in device sales, tolling GTV grew approximately 17% year on year, and BlackBuck FASTag issuances increased through its subsidiary PPI entity.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹235 cr | ₹204 cr | +15.26% |
| Other income | ₹18 cr | ₹16 cr | +9.26% |
| Expenses | ₹185 cr | ₹154 cr | +19.59% |
| Operating profit | ₹51 cr | ₹50 cr | +1.81% |
| Operating margin (%) | 21.50% | 24.35% | — |
| Interest | ₹1 cr | ₹1 cr | -17.65% |
| Depreciation | ₹24 cr | ₹23 cr | +8.65% |
| Profit before tax | ₹43 cr | ₹42 cr | +1.66% |
| Tax | ₹1 cr | ₹-0 cr | — |
| Net profit | ₹41 cr | ₹42 cr | -1.83% |
| EPS (₹) | ₹2.27 | ₹2.31 | -1.73% |
Operating margin of 21.50% compares with a Services sector median of 21.73% across 21 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- The telematics business had another strong quarter and reached new highs in device sales.
- The tolling business delivered strong performance, with GTV growing approximately 17% year on year.
Guidance & outlook
- Vehicle Finance is on track to reach EBITDA break-even, supported by steady AUM growth and a stable cost base.
Expansion
- Superloads placements and revenue grew strongly, aided by hyper-scaling in expansion cities.
- The company continued a calibrated step-up of investments in Superloads during the period, in line with its plan.
New initiatives
- Superloads used AI-driven productivity gains in existing cities.
- BlackBuck FASTag issuances saw a significant uptick through the subsidiary PPI entity.
- The company continued investing in Superloads as part of its planned calibrated investment step-up.
Problems & risks
- Q2 was seasonally a low quarter for the company.
- Total expenses rose 36% year on year, mainly due to customer acquisition growth and Superloads investments.
- Operating leverage remained near 50% despite upfront investments in strong customer acquisition.
What to watch
- Whether operating margin recovers from 21.50% after the 2.85-percentage-point QoQ decline.
- Whether expense growth moderates from +19.59% QoQ relative to revenue growth of +15.26%.
- Whether other income’s 41.62% share of pre-tax profit becomes less material.