OBCL profit jumps, but tax benefit and other income drive the quarter
Revenue momentum improved sequentially and lifted operating margin, while interest and depreciation costs rose and core margins remained below the sector median.
Filed 28 Oct 2026, 18:47 IST · after market close · OBCL Ltd (OBCL)
Key takeaways
- Consolidated operating margin improved 0.72 percentage points sequentially to 3.70% as revenue grew faster than expenses.
- Net profit rose 251.24% sequentially, but the result was heavily supported by a tax rate of -70.67% and other income equal to 147.39% of pre-tax profit.
- OBCL's 3.70% operating margin was 19.11 percentage points below the Services-sector median across 14 reported peers.
Price around the results
Revenue growth lifted the operating margin
In consolidated results, revenue increased 11.63% sequentially while expenses rose 10.81%, allowing operating profit to grow 38.78%. That operating leverage lifted margin by 0.72 percentage points to 3.70%, although the absolute margin remained low.
Net profit quality was weak despite the jump
Net profit grew 251.24% sequentially, but the increase was not matched by the operating result alone. Other income accounted for 147.39% of pre-tax profit, while the tax rate moved down 96.75 percentage points to -70.67%; this tax benefit materially supported reported profit. Interest rose 29.08% and depreciation increased 62.35%, adding pressure below operating profit.
Margin remains near the bottom of the peer set
OBCL's 3.70% operating margin was 19.11 percentage points below the 22.81% median for 14 Services peers that had reported the quarter. The company ranked third from the bottom among that group, so the sequential improvement did not close the sector gap.
Results were filed after market close
The consolidated results were filed after market close on 28 October 2026. There is no market reaction to assess yet, and the absence of a year-on-year comparison makes the sequential improvement the more useful read for this quarter.
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 | ₹92 cr | ₹82 cr | +11.63% |
| Other income | ₹4 cr | ₹2 cr | +59.57% |
| Expenses | ₹89 cr | ₹80 cr | +10.81% |
| Operating profit | ₹3 cr | ₹2 cr | +38.78% |
| Operating margin (%) | 3.70% | 2.98% | — |
| Interest | ₹2 cr | ₹1 cr | +29.08% |
| Depreciation | ₹3 cr | ₹2 cr | +62.35% |
| Profit before tax | ₹2 cr | ₹2 cr | +51.83% |
| Tax | ₹-2 cr | ₹0 cr | — |
| Net profit | ₹4 cr | ₹1 cr | +251.24% |
| EPS (₹) | ₹2.01 | ₹0.57 | +252.63% |
Operating margin of 3.70% compares with a Services sector median of 22.81% across 14 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 3.70% after its 0.72-percentage-point sequential improvement.
- Whether other income falls from its 147.39% share of pre-tax profit.
- Whether interest and depreciation growth moderate from 29.08% and 62.35%, respectively.