Revenue jumps 31.37%, but faster costs cut Jay Bharat Maruti margin
Net profit rose 46.50% QoQ with a lower tax rate; other income was 14.91% of pre-tax profit.
Filed 02 Nov 2026, 15:07 IST · Jay Bharat Maruti Ltd (JAYBARMARU)
Key takeaways
- Consolidated revenue grew 31.37% QoQ, but expenses grew faster at 32.78%, pulling operating margin down 0.97 percentage points to 9.07%.
- Net profit rose 46.50% QoQ as the tax rate eased 0.30 percentage points, while other income contributed 14.91% of pre-tax profit.
- The stock gained 13.65% on November 2 even as operating margin sat 3.67 percentage points below the 12.74% median for 153 reporting sector peers.
Price around the results
Q2 growth came with weaker operating leverage
Jay Bharat Maruti reported consolidated revenue growth of 31.37% QoQ in Q2FY27, while operating profit grew 18.72%. Expenses rose faster than revenue at 32.78%, reducing operating margin by 0.97 percentage points to 9.07%. Management said higher MSIL volumes improved capacity utilisation and operating performance.
Commodity and wage costs weighed on margins
Management attributed margin pressure to adverse commodity prices linked to the West Asia conflict and higher employee costs after a hike in Haryana minimum wages. Interest expense rose 3.97% QoQ, while depreciation increased 13.25%, adding to the pressure below operating profit. The presentation said finance costs remained stable despite expansion of new plants.
Profit growth was helped by tax and other income
Net profit increased 46.50% QoQ, ahead of operating profit growth, as the tax rate declined 0.30 percentage points to 25.05%. Other income accounted for 14.91% of pre-tax profit, so reported earnings included a meaningful non-operating contribution. Management said Sheet Metal turnover rose 24% QoQ and 42% versus the year-ago quarter.
Margin trails the sector while the stock rallied
Jay Bharat Maruti's 9.07% operating margin was 3.67 percentage points below the 12.74% median among 153 Consumer Discretionary peers that had reported. The stock rose 13.65% on November 2, with traded volume at 5.7 times the reference level. The company also said it had taken steps to use renewable energy to minimise energy costs.
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 | ₹823 cr | ₹627 cr | +31.37% |
| Other income | ₹6 cr | ₹1 cr | +489.81% |
| Expenses | ₹749 cr | ₹564 cr | +32.78% |
| Operating profit | ₹75 cr | ₹63 cr | +18.72% |
| Operating margin (%) | 9.07% | 10.04% | — |
| Interest | ₹11 cr | ₹11 cr | +3.97% |
| Depreciation | ₹27 cr | ₹24 cr | +13.25% |
| Profit before tax | ₹43 cr | ₹29 cr | +45.97% |
| Tax | ₹11 cr | ₹7 cr | +44.20% |
| Net profit | ₹32 cr | ₹22 cr | +46.50% |
| EPS (₹) | ₹2.96 | ₹2.02 | +46.53% |
Operating margin of 9.07% compares with a Consumer Discretionary sector median of 12.74% across 153 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +13.65% | +11.96% |
Volume on the results session was 5.70× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Higher MSIL volumes improved capacity utilisation and operating performance.
- Sheet Metal turnover in Q2 FY27 increased 42% compared with Q2 of the previous year.
- Sheet Metal turnover in Q2 FY27 increased 24% compared with Q1.
Expansion
- Finance costs remained stable despite the expansion of new plants.
New initiatives
- The company took steps to use renewable energy to minimise energy costs.
Problems & risks
- Adverse commodity prices affected margins in the context of the West Asia conflict.
- Employee costs increased due to a hike in Haryana minimum wages.
What to watch
- Whether operating margin recovers from 9.07% after the 0.97-percentage-point QoQ decline.
- Whether expenses continue to grow faster than revenue after the 32.78% versus 31.37% gap in Q2FY27.
- Whether other income remains a material earnings contributor after accounting for 14.91% of pre-tax profit.