Bombay Super Hybrid Seeds' operating margin slips to 4.96%
Revenue fell 52.97% QoQ, while expenses declined less at 50.67%, squeezing operating profit and net profit.
Filed 15 Oct 2026, 17:05 IST · after market close · Bombay Super Hybrid Seeds Ltd (BSHSL)
Key takeaways
- Standalone operating margin narrowed 4.43 percentage points QoQ to 4.96% as expenses fell 50.67%, less than revenue's 52.97% decline.
- Net profit dropped 83.50% QoQ to Rs 2.36 cr despite interest expense falling 54.90%, as the tax rate rose 13.90 percentage points.
- At 4.96%, the company's operating margin was 18.41 percentage points below the 23.37% median of five reported FMCG peers.
Price around the results
Standalone earnings weakened faster than revenue
Standalone revenue contracted 52.97% QoQ to Rs 85.86 cr, but operating profit fell 75.20% to Rs 4.25 cr. The sharper decline in operating profit shows that the quarter's earnings weakness outpaced the sales contraction.
Slower cost reduction narrowed the margin
Expenses declined 50.67%, slower than revenue, so operating margin narrowed 4.43 percentage points to 4.96%. Interest expense fell 54.90%, but depreciation rose 37.14%; other income was only 3.39% of pre-tax profit and did not materially support earnings.
Tax rate added to the sequential profit pressure
Net profit fell 83.50% QoQ as pre-tax profit declined 80.66%; the tax rate rose from 6.23% in Q1FY27 to 20.13% in Q2FY27. The available quarterly trend shows operating margin falling from 9.39% to 4.96%.
Margin trails the reported FMCG peer median
Among five reported FMCG peers, the company's 4.96% operating margin was 18.41 percentage points below the 23.37% sector median. It ranked first from the bottom on this measure.
Results were filed after market close
The standalone results were filed at 17:05 IST on 15 October 2026, after market close. The stock's immediate post-result reaction is therefore not covered in this quarter's report.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹86 cr | ₹183 cr | -52.97% |
| Other income | ₹0 cr | ₹1 cr | -80.39% |
| Expenses | ₹82 cr | ₹165 cr | -50.67% |
| Operating profit | ₹4 cr | ₹17 cr | -75.20% |
| Operating margin (%) | 4.96% | 9.39% | — |
| Interest | ₹1 cr | ₹2 cr | -54.90% |
| Depreciation | ₹0 cr | ₹0 cr | +37.14% |
| Profit before tax | ₹3 cr | ₹15 cr | -80.66% |
| Tax | ₹1 cr | ₹1 cr | -37.89% |
| Net profit | ₹2 cr | ₹14 cr | -83.50% |
| EPS (₹) | ₹0.22 | ₹1.36 | -83.82% |
Operating margin of 4.96% compares with a Fast Moving Consumer Goods sector median of 23.37% across 5 peers that have reported Q2FY27.
What to watch
- Whether revenue recovers from Rs 85.86 cr after the 52.97% QoQ decline.
- Whether operating margin improves from 4.96% after the 4.43 percentage-point sequential fall.
- Whether the tax rate remains near 20.13% rather than the 6.23% reported in Q1FY27.