Dalmia Bharat's operating margin falls to 7.61% after Q4 rebound
Revenue rose 6.99% year on year, but costs grew 13.16%; net profit fell 51.39% as interest and tax costs increased.
Filed 24 Jul 2026, 13:18 IST · Dalmia Bharat Ltd (DALBHARAT)
Key takeaways
- Consolidated operating margin fell 5.04 percentage points year on year to 7.61% as expenses grew 13.16% against revenue growth of 6.99%.
- Net profit declined 51.39% year on year to Rs 192 cr, with interest costs up 36.11% and other income contributing 54.72% of pre-tax profit.
- The stock fell 2.68% after the results, a slightly larger move than its 2.18% median absolute reaction across the last eight result dates.
Price around the results
Q1 margin reversed the Q4FY26 recovery
Consolidated revenue grew 6.99% year on year to Rs 3,890 cr, but expenses increased 13.16%, reducing operating profit by 35.65% to Rs 296 cr. Sequentially, revenue fell 8.36% while expenses still rose 0.93%, taking operating margin down 8.50 percentage points from Q4FY26. At 7.61%, the margin was below the 13.56% median for 12 reported Commodities peers and ranked fourth from the bottom.
Higher financing costs and tax compounded the operating squeeze
Interest expense rose 36.11% year on year and 11.36% sequentially, while depreciation increased 12.11% year on year, further reducing the conversion of operating profit into pre-tax profit. The tax rate was broadly stable year on year, up 0.66 percentage points, but rose 14.18 percentage points sequentially to weigh on profit after the Q4FY26 tax benefit. Other income was 54.72% of pre-tax profit, making the reported profit mix a material quality consideration.
Profit has fallen sharply from the prior quarter
Pre-tax profit fell 50.97% year on year and 42.27% sequentially, while net profit declined 51.39% and 51.27%, respectively; EPS fell 52.17% year on year to Rs 10.02. The operating margin had improved to 16.11% in Q4FY26 after declining from 12.65% in Q1FY26 to 7.76% in Q3FY26, but the latest 7.61% marks a renewed deterioration and the lowest level in the reported five-quarter series.
Market reaction was negative but within the stock's usual range
The stock fell 2.68% on the results date, with volume at 3.92 times the reference level and relative performance of -2.25%. Its last eight result reactions were evenly split between four rises and four falls, while the median absolute move was 2.18%, making this decline slightly larger than usual rather than an outlier.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹3,890 cr | ₹4,245 cr | -8.36% | +6.99% |
| Other income | ₹139 cr | ₹45 cr | +208.89% | +183.67% |
| Expenses | ₹3,594 cr | ₹3,561 cr | +0.93% | +13.16% |
| Operating profit | ₹296 cr | ₹684 cr | -56.73% | -35.65% |
| Operating margin (%) | 7.61% | 16.11% | — | — |
| Interest | ₹147 cr | ₹132 cr | +11.36% | +36.11% |
| Depreciation | ₹361 cr | ₹365 cr | -1.10% | +12.11% |
| Profit before tax | ₹254 cr | ₹440 cr | -42.27% | -50.97% |
| Tax | ₹62 cr | ₹45 cr | +37.78% | -49.59% |
| Net profit | ₹192 cr | ₹394 cr | -51.27% | -51.39% |
| EPS (₹) | ₹10.02 | ₹20.69 | -51.57% | -52.17% |
Operating margin of 7.61% compares with a Commodities sector median of 13.56% across 12 peers that have reported Q1FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -2.68% | -2.25% |
Volume on the results session was 3.92× its 20-day average.
What to watch
- Whether operating margin recovers from 7.61% after the 8.50-percentage-point sequential decline.
- Whether expense growth moves below the 6.99% year-on-year revenue growth rate.
- Whether other income falls from 54.72% of pre-tax profit and interest growth moderates from 36.11% year on year.