Revenue recovery narrows MBECL’s Q2 loss, but operations remain in the red
Revenue grew faster than expenses sequentially, lifting operating margin by 19.14 percentage points; interest costs still rose +9.29%.
Filed 12 Nov 2026, 19:07 IST · after market close · MBECL (MBECL)
Key takeaways
- Consolidated revenue grew +30.43% sequentially while expenses rose +13.11%, narrowing the operating loss to Rs 4.87 cr.
- Operating margin improved 19.14 percentage points from Q1FY27 but remained negative at -24.80%.
- Net loss narrowed to Rs 6.61 cr from Rs 25.27 cr, helped by other income turning positive at Rs 2.23 cr.
Q2 revenue improved, but the operating loss persisted
MBECL’s consolidated revenue rose +30.43% sequentially to Rs 19.63 cr, while expenses increased only +13.11% to Rs 24.50 cr. That gap narrowed the operating loss to Rs 4.87 cr from Rs 6.61 cr in Q1FY27, but the business remained loss-making at the operating level.
Margin recovery was offset by finance costs
Operating margin improved by 19.14 percentage points to -24.80%, as revenue grew faster than expenses. Interest costs nevertheless rose +9.29% to Rs 3.53 cr, limiting the benefit of the operating improvement. Other income was Rs 2.23 cr after being negative in Q1FY27, but profit before tax remained negative at Rs 6.61 cr.
Loss narrowed sharply from Q1, with no year-on-year comparison
Consolidated net loss narrowed to Rs 6.61 cr from Rs 25.27 cr in Q1FY27, while EPS improved to negative Rs 1.98 from negative Rs 7.58. The tax rate was 0.00% because the company reported a loss, so the improvement in net profit came from operating performance and other income rather than a lower tax burden. With only Q1FY27 in the trend, the available direction is one quarter of margin recovery rather than a multi-quarter trend.
Results were filed after market close
The consolidated results were filed after market close on 12 November 2026. No post-results stock reaction is included, so the market response cannot yet be assessed against the company’s past results.
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 | ₹20 cr | ₹15 cr | +30.43% |
| Other income | ₹2 cr | ₹-15 cr | — |
| Expenses | ₹25 cr | ₹22 cr | +13.11% |
| Operating profit | ₹-5 cr | ₹-7 cr | +26.32% |
| Operating margin (%) | -24.80% | -43.94% | — |
| Interest | ₹4 cr | ₹3 cr | +9.29% |
| Depreciation | ₹0 cr | ₹0 cr | +7.32% |
| Profit before tax | ₹-7 cr | ₹-25 cr | +73.84% |
| Tax | ₹0 cr | ₹0 cr | — |
| Net profit | ₹-7 cr | ₹-25 cr | +73.84% |
| EPS (₹) | ₹-1.98 | ₹-7.58 | +73.88% |
What to watch
- Whether operating margin improves further from -24.80%.
- Whether expenses continue to grow more slowly than revenue, after +13.11% versus +30.43% in Q2FY27.
- Whether interest costs moderate from Rs 3.53 cr.