SBC Exports grows revenue, but faster costs cut operating margin
Sequential revenue rose 35.72%, yet expenses grew 38.49%; other income accounted for 33.4% of pre-tax profit.
Filed 15 Oct 2026, 19:50 IST · after market close · SBC Exports Ltd (SBC)
Key takeaways
- Revenue grew 35.72% sequentially, but expenses rose faster at 38.49%, narrowing operating margin by 1.81 percentage points to 9.02%.
- Other income contributed 33.4% of pre-tax profit, making the quarter's Rs 11.38 cr net profit less dependent on operating earnings alone.
- Operating margin improved from 7.49% in Q1FY26 to 10.83% in Q1FY27 before slipping to 9.02% in Q2FY27.
Price around the results
Revenue momentum came with weaker operating leverage
In consolidated results, revenue increased 35.72% sequentially to Rs 164.33 cr, while operating profit rose 12.96% to Rs 14.82 cr. Expenses grew 38.49%, outpacing revenue growth and reducing operating margin by 1.81 percentage points to 9.02%. Interest expense also increased 9.64%, adding to the pressure below operating profit.
Other income supported pre-tax profit
Other income rose 36.60% sequentially to Rs 5.15 cr and represented 33.4% of pre-tax profit. That contribution supported profit before tax growth of 20.94%, while the 1.52-percentage-point rise in the tax rate to 26.22% limited the conversion into net profit. Net profit still increased 18.54% to Rs 11.38 cr.
Margin is below the Consumer Discretionary peer median
SBC Exports' 9.02% operating margin was 0.58 percentage points below the 9.60% median for the 11 Consumer Discretionary peers that had reported. The available quarterly trend shows margin rising from 7.49% in Q1FY26 to 10.83% in Q1FY27, before declining in Q2FY27.
Results were filed after market close
The consolidated results were filed at 19:50 IST, after market close. The stock's immediate response is therefore not part of 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 | ₹164 cr | ₹121 cr | +35.72% |
| Other income | ₹5 cr | ₹4 cr | +36.60% |
| Expenses | ₹150 cr | ₹108 cr | +38.49% |
| Operating profit | ₹15 cr | ₹13 cr | +12.96% |
| Operating margin (%) | 9.02% | 10.83% | — |
| Interest | ₹4 cr | ₹4 cr | +9.64% |
| Depreciation | ₹1 cr | ₹1 cr | +14.00% |
| Profit before tax | ₹15 cr | ₹13 cr | +20.94% |
| Tax | ₹4 cr | ₹3 cr | +28.25% |
| Net profit | ₹11 cr | ₹10 cr | +18.54% |
| EPS (₹) | ₹0.24 | ₹0.20 | +20.00% |
Operating margin of 9.02% compares with a Consumer Discretionary sector median of 9.60% across 11 peers that have reported Q2FY27.
What to watch
- Whether operating margin recovers from 9.02% after the 1.81-percentage-point sequential decline.
- Whether expense growth falls below the 35.72% sequential revenue growth rate.
- Whether other income remains a large contributor to pre-tax profit after accounting for 33.4% this quarter.