DBL margin improves, but higher tax rate cuts net profit 20.86%
Expenses fell faster than revenue, but the tax rate rose 24.63 percentage points and other income contributed 35.87% of PBT.
Filed 12 Nov 2026, 16:54 IST · after market close · Dilip Buildcon Ltd (DBL)
Key takeaways
- Consolidated operating margin rose 1.45 percentage points QoQ to 19.50% as expenses fell faster than revenue.
- Net profit fell 20.86% QoQ despite 13.48% PBT growth, as the tax rate rose 24.63 percentage points to 43.23%.
- Other income made up 35.87% of PBT, while management reported an order book of Rs 33,081 cr as of 30 September 2026.
Price around the results
Cost reduction lifted DBL's operating margin
Consolidated revenue declined 5.36% QoQ, but expenses declined 7.03%, allowing operating profit to grow 2.24% and operating margin to widen 1.45 percentage points. The operating improvement therefore came from expense reduction rather than topline momentum.
Higher tax and other income changed the profit mix
PBT rose 13.48% QoQ, but net profit fell 20.86% as the tax rate jumped 24.63 percentage points to 43.23%. Interest expense also rose 2.31%, while other income accounted for 35.87% of PBT. The pre-tax improvement therefore did not translate into higher reported profit.
Margin stayed above the Industrials peer median
DBL's 19.50% operating margin was 7.92 percentage points above the 11.58% median for the 215 Industrials peers that had reported the quarter. Sequentially, margin improved from 18.05% in Q1FY27, marking a positive quarter-on-quarter direction.
Management points to long-duration mining and renewable work
Management said its mining MDO order book covers the next 25–55 years and that the order book stood at Rs 33,081 cr as of 30 September 2026. The company said its 100 MW renewable project has a 24-month construction period, while the 1,977.15 MW project has a 17-month period from PPA. Management also said DBL has set up manufacturing units for road furniture and materials to control execution costs and timelines.
Results were filed after market close
DBL filed its consolidated Q2FY27 results after market close on 12 November 2026. The market response is not assessed in this update.
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 | ₹2,250 cr | ₹2,378 cr | -5.36% |
| Other income | ₹64 cr | ₹47 cr | +35.38% |
| Expenses | ₹1,812 cr | ₹1,949 cr | -7.03% |
| Operating profit | ₹439 cr | ₹429 cr | +2.24% |
| Operating margin (%) | 19.50% | 18.05% | — |
| Interest | ₹251 cr | ₹245 cr | +2.31% |
| Depreciation | ₹74 cr | ₹74 cr | -0.70% |
| Profit before tax | ₹178 cr | ₹157 cr | +13.48% |
| Tax | ₹77 cr | ₹29 cr | +163.70% |
| Net profit | ₹101 cr | ₹128 cr | -20.86% |
| EPS (₹) | ₹6.24 | ₹7.88 | -20.81% |
Operating margin of 19.50% compares with a Industrials sector median of 11.58% across 215 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- The company has a long-term mining MDO order book covering the next 25–55 years.
- The order book stood at Rs. 33,081 crore as of 30 September 2026.
Expansion
- The 100 MW renewable energy project has a 24-month construction period.
- The 1,977.15 MW renewable energy project has a 17-month construction period from PPA.
New initiatives
- DBL has set up manufacturing units for road furniture and materials to support in-house execution and control costs and timelines.
What to watch
- Whether operating margin holds above 19.50% after the 1.45-percentage-point QoQ improvement.
- Whether the tax rate moves from 43.23% after its 24.63-percentage-point QoQ increase.
- Whether the Rs 33,081 cr order book and 25–55-year mining MDO coverage are updated in the next presentation.