BPL's operating margin turns negative as costs outpace revenue growth
Revenue grew +14.17% sequentially, but higher expenses, interest and negative other income deepened the consolidated loss to Rs 5.19 cr.
Filed 02 Nov 2026, 16:46 IST · after market close · BPL Ltd (BPL)
Key takeaways
- Revenue rose +14.17% QoQ, but expenses grew +22.67%, pushing operating margin down 6.95 percentage points to -0.17%.
- The consolidated net loss widened +46.61% QoQ to Rs 5.19 cr as negative other income of Rs 4.12 cr and interest up +41.94% weighed on pre-tax profit.
- BPL's -0.17% operating margin was 12.91 percentage points below the 12.74% median of 153 reported Consumer Discretionary peers.
Price around the results
Revenue growth failed to cover the cost increase
BPL's consolidated revenue increased +14.17% QoQ, but expenses rose faster at +22.67%. That cost gap pushed operating profit from Rs 1.45 cr in Q1FY27 to a loss of Rs 0.04 cr, taking operating margin from 6.78% to -0.17%.
Negative other income drove most of the pre-tax loss
Negative other income of Rs 4.12 cr represented 79.38% of the pre-tax loss, making the reported loss materially worse than the near-break-even operating result. Interest expense also rose +41.94% QoQ to Rs 0.44 cr, while the 0.0% tax rate provided no tax offset to the Rs 5.19 cr pre-tax loss.
Margin moved below both the prior quarter and sector median
The 6.95-percentage-point sequential margin decline reversed the operating profit recorded in Q1FY27. At -0.17%, BPL's operating margin was 12.91 percentage points below the 12.74% median for the 153 Consumer Discretionary peers that had reported, placing it 13th from the bottom.
Results were filed after market close
BPL filed the consolidated results at 16:46 IST on 2 November 2026, after market close. A market reaction is therefore not yet part of this report.
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 | ₹24 cr | ₹21 cr | +14.17% |
| Other income | ₹-4 cr | ₹-4 cr | -0.98% |
| Expenses | ₹24 cr | ₹20 cr | +22.67% |
| Operating profit | ₹-0 cr | ₹1 cr | — |
| Operating margin (%) | -0.17% | 6.78% | — |
| Interest | ₹0 cr | ₹0 cr | +41.94% |
| Depreciation | ₹1 cr | ₹1 cr | -1.67% |
| Profit before tax | ₹-5 cr | ₹-4 cr | -46.61% |
| Tax | ₹0 cr | ₹0 cr | — |
| Net profit | ₹-5 cr | ₹-4 cr | -46.61% |
| EPS (₹) | ₹-1.06 | ₹-0.72 | -47.22% |
Operating margin of -0.17% compares with a Consumer Discretionary sector median of 12.74% across 153 peers that have reported Q2FY27.
What to watch
- Whether operating margin returns to positive territory from -0.17%.
- Whether expense growth moderates from +22.67% QoQ relative to revenue growth of +14.17%.
- Whether negative other income narrows from Rs 4.12 cr and the pre-tax loss from Rs 5.19 cr.