SBCL margin expands as revenue growth outpaces costs
Operating profit rose 16.18% sequentially, but higher interest and tax costs limited profit-before-tax growth to 6.75%.
Filed 04 Nov 2026, 14:09 IST · Shivalik Bimetal Controls Ltd (SBCL)
Key takeaways
- Consolidated operating margin widened 1.66 percentage points to 25.38% as revenue grew 8.56% sequentially, faster than expenses at 6.19%.
- Net profit rose 5.27% sequentially to Rs 34.75 cr despite interest costs increasing 62.31% and the tax rate rising 1.05 percentage points.
- The 25.38% operating margin was 13.14 percentage points above the Industrials peer median across 143 companies that reported the quarter.
Price around the results
Revenue momentum lifted operating profit
Shivalik Bimetal Controls reported consolidated revenue of Rs 197.79 cr in Q2FY27, up 8.56% sequentially from Q1FY27. Expenses grew 6.19%, so operating profit increased 16.18% to Rs 50.2 cr. The resulting 25.38% operating margin improved 1.66 percentage points from 23.72%.
Higher financing and tax costs diluted profit conversion
Interest expense increased 62.31% sequentially, while depreciation rose 36.62%, limiting profit-before-tax growth to 6.75% despite the faster operating-profit increase. The tax rate also rose 1.05 percentage points to 25.75%, helping explain why net profit grew only 5.27% to Rs 34.75 cr. Other income contributed 8.78% of profit before tax, so it was a supplementary but visible part of reported earnings.
Margin remains well above the reported Industrials peer median
SBCL's operating margin of 25.38% was 13.14 percentage points above the 12.24% median for the 143 Industrials companies that had reported the same quarter. Sequentially, margin direction improved from 23.72% in Q1FY27, although the available trend covers only these two quarters.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹198 cr | ₹182 cr | +8.56% |
| Other income | ₹4 cr | ₹6 cr | -29.98% |
| Expenses | ₹148 cr | ₹139 cr | +6.19% |
| Operating profit | ₹50 cr | ₹43 cr | +16.18% |
| Operating margin (%) | 25.38% | 23.72% | — |
| Interest | ₹2 cr | ₹1 cr | +62.31% |
| Depreciation | ₹5 cr | ₹4 cr | +36.62% |
| Profit before tax | ₹47 cr | ₹44 cr | +6.75% |
| Tax | ₹12 cr | ₹11 cr | +11.27% |
| Net profit | ₹35 cr | ₹33 cr | +5.27% |
| EPS (₹) | ₹5.82 | ₹5.73 | +1.57% |
Operating margin of 25.38% compares with a Industrials sector median of 12.24% across 143 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 25.38% after the sequential improvement from 23.72%.
- Whether interest expense moderates from the 62.31% sequential increase.
- Whether the tax rate moves below the current 25.75% level.