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 net profit fell 51.39% year on year as expenses grew 12.06%, faster than revenue growth of 6.99%.
- Operating margin narrowed 3.59 percentage points year on year to 20.69%, although it remained 1.73 percentage points above the 18.96% median for 56 reported Commodities peers.
- The stock fell 2.37% on results day, a slightly larger move than its 2.18% median absolute reaction across the last eight results.
Price around the results
Revenue grew, but profit conversion weakened
Consolidated revenue rose 6.99% year on year, but operating profit declined 8.83% as expenses increased 12.06%. Net profit fell 51.39%, with pre-tax profit down 50.97%. Other income was negative and represented -16.93% of pre-tax profit, so it reduced rather than supported reported earnings.
Operating margin lost 3.59 percentage points
Costs grew faster than revenue, narrowing operating margin by 3.59 percentage points year on year. Interest expense also increased 36.11%, while depreciation rose 12.11%, adding pressure below the operating line. The tax rate increased by 0.66 percentage points year on year, so the profit decline was not caused by a lower tax rate flattering the comparison.
Sequential momentum softened after the Q4 rebound
Revenue fell 8.36% sequentially, while expenses declined 7.72%, causing operating margin to contract by 0.56 percentage points. Net profit dropped 51.27% sequentially as interest rose 11.36% and the tax rate increased 14.18 percentage points. Margin had recovered from 17.17% in Q3FY26 to 21.25% in Q4FY26, but eased to 20.69% in Q1FY27 rather than extending that rebound.
Margin remains above the reported Commodities peer median
Dalmia Bharat's 20.69% operating margin was 1.73 percentage points above the 18.96% median among 56 Commodities peers that had reported the quarter. The company ranked 36th from the bottom on this comparison, placing its margin above the sector median despite the year-on-year contraction.
The initial market reaction was slightly worse than usual
The stock fell 2.37% on the results day and was down 2.97% after five sessions, underperforming the market by 1.94% and 5.12% at those points. Its results-day decline was slightly larger than the 2.18% median absolute move across the last eight results, when four reactions were positive and four were negative.
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 | ₹-43 cr | ₹35 cr | — | — |
| Expenses | ₹3,085 cr | ₹3,343 cr | -7.72% | +12.06% |
| Operating profit | ₹805 cr | ₹902 cr | -10.75% | -8.83% |
| Operating margin (%) | 20.69% | 21.25% | — | — |
| 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 20.69% compares with a Commodities sector median of 18.96% across 56 peers that have reported Q1FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -2.37% | -1.94% |
| Next session | -1.52% | — |
| 5 sessions | -2.97% | -5.12% |
Volume on the results session was 3.92× its 20-day average.
What to watch
- Whether operating margin recovers from 20.69% after the 0.56 percentage-point sequential decline.
- Whether expense growth moves back below revenue growth after the year-on-year gap of 12.06% versus 6.99%.
- Whether the tax rate remains near 24.41% and interest growth moderates from 36.11% year on year.