Dalmia Bharat swings to loss as operating margin falls 6.53 points
Costs grew +12.83% YoY against +4.27% revenue growth, while negative other income of Rs 293 cr drove the pre-tax loss.
Filed 26 Oct 2026, 15:52 IST · after market close · Dalmia Bharat Ltd (DALBHARAT)
Key takeaways
- Dalmia Bharat reported a consolidated net loss of Rs 205 cr after negative other income of Rs 293 cr absorbed operating profit.
- Operating margin fell 6.53 percentage points year on year to 13.84% as expenses grew 12.83% against 4.27% revenue growth.
- The quarter's margin was 2.13 percentage points below the 15.97% median for 19 reported Commodities-sector peers.
Price around the results
Negative other income erased operating profit
Dalmia Bharat's consolidated operating profit was Rs 493 cr, but Rs 130 cr of interest and Rs 363 cr of depreciation consumed that amount before negative other income of Rs 293 cr. The company therefore reported a pre-tax loss of Rs 293 cr and a net loss of Rs 205 cr, despite a tax benefit of Rs 85 cr. Other income accounted for 100.00% of pre-tax profit because it was the decisive swing factor in the quarter.
Costs outpaced revenue and margins weakened
Year-on-year revenue grew 4.27%, while expenses increased 12.83%, reducing operating profit by 29.17% and narrowing operating margin by 6.53 percentage points. Sequentially, revenue fell 8.41% while expenses declined only 0.49%, taking margin down 6.85 percentage points from Q1FY27. Interest declined 11.56% sequentially, but that saving was not enough to offset the weaker operating performance.
Margin direction remains weaker after a brief rebound
Operating margin rose to 21.25% in Q4FY26 from 17.17% in Q3FY26, but then declined for two consecutive quarters to 20.69% and 13.84%. The latest margin was 2.13 percentage points below the 15.97% median among 19 Commodities-sector peers that had reported the quarter. This places the quarter below the sector comparison despite positive year-on-year revenue growth.
No immediate stock response after the filing
The results were filed after market close, so there was no immediate market response to assess. Across the last eight result reactions, the stock rose four times and fell four times, with a median absolute move of 2.18%. The recent sequence has included moves from -2.73% to +4.48%, indicating mixed direction rather than a consistent reaction pattern.
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 | ₹3,563 cr | ₹3,890 cr | -8.41% | +4.27% |
| Other income | ₹-293 cr | ₹-43 cr | -581.40% | — |
| Expenses | ₹3,070 cr | ₹3,085 cr | -0.49% | +12.83% |
| Operating profit | ₹493 cr | ₹805 cr | -38.76% | -29.17% |
| Operating margin (%) | 13.84% | 20.69% | — | — |
| Interest | ₹130 cr | ₹147 cr | -11.56% | +6.56% |
| Depreciation | ₹363 cr | ₹361 cr | +0.55% | +12.73% |
| Profit before tax | ₹-293 cr | ₹254 cr | — | — |
| Tax | ₹-85 cr | ₹62 cr | — | — |
| Net profit | ₹-205 cr | ₹192 cr | — | — |
| EPS (₹) | ₹-11.03 | ₹10.02 | — | — |
Operating margin of 13.84% compares with a Commodities sector median of 15.97% across 19 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -6.63% | -6.62% |
Volume on the results session was 10.08× its 20-day average.
What to watch
- Whether operating margin recovers from 13.84% after two consecutive sequential declines.
- Whether revenue reverses the sequential decline of 8.41%.
- Whether other income moves back from negative Rs 293 cr.