Revenue surged, but B.L. Kashyap's margin stayed below sector median
Sequential profit more than doubled as lower interest and tax costs offset a slight margin squeeze from faster expense growth.
Filed 12 Nov 2026, 13:26 IST · B.L.Kashyap & Sons Ltd (BLKASHYAP)
Key takeaways
- Consolidated revenue grew 44.34% sequentially, but expenses grew slightly faster at 44.47%, leaving operating margin down 0.08 percentage points.
- Net profit rose 102.10% sequentially as interest costs fell 5.49% and the tax rate declined 3.73 percentage points.
- Operating margin at 8.20% was 3.31 percentage points below the 11.51% median for 230 Industrials peers that had reported.
Price around the results
Revenue accelerated without a margin lift
Consolidated revenue increased 44.34% sequentially to Rs 498.15 cr, while operating profit grew 42.86% to Rs 40.83 cr. Expenses grew 44.47%, slightly faster than revenue, so operating margin narrowed by 0.08 percentage points to 8.20%. The only available trend point is Q1FY27, when operating margin was 8.28%, so this was a sequential dip rather than evidence of a longer decline.
Lower interest and tax costs drove the profit jump
Profit before tax rose 91.74% sequentially, helped by a 5.49% fall in interest expense and the lower tax rate. Net profit increased 102.10%, with the tax rate falling 3.73 percentage points to 26.21%. Other income contributed 4.86% of pre-tax profit, so it was not the main source of the earnings increase.
Margin remained below the Industrials peer median
B.L. Kashyap's 8.20% operating margin was 3.31 percentage points below the 11.51% median among 230 Industrials companies that had reported the same quarter. The company ranked 58th from the bottom on this measure, placing cost control and execution margin ahead of revenue growth in interpreting the quarter.
Order wins support the pipeline, while GRAP may disrupt execution
Management said the order book stood at Rs 4,647 cr as of September 30, 2026, and that it had received Rs 696 cr of new project orders in the current quarter, taking FY2027 wins to Rs 1,150 cr. The company told analysts that projects worth Rs 900 cr in the North and Rs 1,200 cr in the South were in advanced negotiation stages, and said it aims to expand its railway presence. Management also said Delhi-NCR pollution restrictions and GRAP measures may disrupt construction, productivity and revenue recognition in November and December, with resource redeployment and execution planning intended to limit the effect.
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 | ₹498 cr | ₹345 cr | +44.34% |
| Other income | ₹1 cr | ₹1 cr | +33.00% |
| Expenses | ₹457 cr | ₹317 cr | +44.47% |
| Operating profit | ₹41 cr | ₹29 cr | +42.86% |
| Operating margin (%) | 8.20% | 8.28% | — |
| Interest | ₹11 cr | ₹11 cr | -5.49% |
| Depreciation | ₹4 cr | ₹4 cr | +2.15% |
| Profit before tax | ₹27 cr | ₹14 cr | +91.74% |
| Tax | ₹7 cr | ₹4 cr | +67.76% |
| Net profit | ₹20 cr | ₹10 cr | +102.10% |
| EPS (₹) | ₹0.90 | ₹0.44 | +104.55% |
Operating margin of 8.20% compares with a Industrials sector median of 11.51% across 230 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.
Guidance & outlook
- Projects worth ₹900 crore in the North and ₹1,200 crore in the South are in advanced negotiation stages.
- The company aims to grow its presence in the railway sector.
New orders
- The company received ₹696 crore of new project orders in the current quarter and ₹1,150 crore of wins in FY2027.
- The company reported an order book of ₹4,647 crore as of September 30, 2026.
New initiatives
- The company plans to minimise GRAP-related effects through resource redeployment and execution planning.
Competition
- The company will use completed railway projects as a competitive advantage when bidding for new projects.
Problems & risks
- Pollution restrictions and GRAP measures may temporarily disrupt Delhi-NCR construction in November and December.
- The company expects the GRAP-related disruption to affect execution, productivity and revenue recognition.
- SBI quantified the total Right of Recompense liability at ₹52.50 crore, subject to consortium lender confirmation.
What to watch
- Whether operating margin moves back above the Q1FY27 level of 8.28%.
- Whether the Rs 4,647 cr order book converts into revenue without a repeat of the 0.08 percentage-point sequential margin decline.
- Whether GRAP-related disruption affects execution and revenue recognition despite the Rs 696 cr of current-quarter orders.