Bombay Dyeing turns operating margin positive, but profit relies on other income
Revenue growth outpaced expense growth, yet other income exceeded pre-tax profit and the margin remained well below the sector median.
Filed 06 Nov 2026, 14:25 IST · Bombay Dyeing & Manufacturing Company Ltd (BOMDYEING)
Key takeaways
- Consolidated operating margin turned positive at 0.95%, improving 4.45 percentage points YoY as revenue growth outpaced expense growth.
- Net profit growth was supported by a 30.87-percentage-point YoY fall in the tax rate, while other income equalled 131.03% of pre-tax profit.
- Operating margin has improved in each of the last three quarters but remained 10.47 percentage points below the 287-peer sector median.
Price around the results
Operating recovery reaches positive territory
Consolidated revenue grew +77.53% YoY while expenses rose +69.89%, lifting operating margin by 4.45 percentage points to positive territory. Sequentially, revenue increased +56.71% and expenses +55.00%, leading to a 1.09-percentage-point margin improvement. This marks the third consecutive quarter of sequential margin improvement from the Q3FY26 trough.
Profit quality remains dependent on non-operating income
Other income accounted for 131.03% of pre-tax profit, so reported profit was not generated by operating earnings alone; other income itself fell -19.75% YoY. The tax rate declined by 30.87 percentage points YoY, while interest expense fell -43.49%, both supporting the improvement in net profit. The operating margin nevertheless stayed modest at 0.95%.
Margin remains below the consumer-discretionary peer set
Among 287 Consumer Discretionary peers that have reported, Bombay Dyeing's operating margin was 10.47 percentage points below the sector median of 11.42%. The company was 34th from the bottom on this measure, despite the improvement from negative margins in the preceding quarters.
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 | YoY |
|---|---|---|---|---|
| Revenue | ₹644 cr | ₹411 cr | +56.71% | +77.53% |
| Other income | ₹24 cr | ₹22 cr | +5.65% | -19.75% |
| Expenses | ₹638 cr | ₹411 cr | +55.00% | +69.89% |
| Operating profit | ₹6 cr | ₹-1 cr | — | — |
| Operating margin (%) | 0.95% | -0.14% | — | — |
| Interest | ₹2 cr | ₹3 cr | -26.09% | -43.49% |
| Depreciation | ₹10 cr | ₹9 cr | +10.97% | +13.83% |
| Profit before tax | ₹18 cr | ₹10 cr | +74.64% | +283.69% |
| Tax | ₹5 cr | ₹3 cr | +57.75% | +84.70% |
| Net profit | ₹13 cr | ₹7 cr | +82.63% | +573.44% |
| EPS (₹) | ₹0.63 | ₹0.34 | +85.29% | +600.00% |
Operating margin of 0.95% compares with a Consumer Discretionary sector median of 11.42% across 287 peers that have reported Q2FY27.
What to watch
- Whether operating margin remains above 0.95% after three consecutive quarters of improvement.
- Whether other income remains as high as 131.03% of pre-tax profit.
- Whether expense growth stays below revenue growth after the current +69.89% versus +77.53% YoY gap.