TBZ profit drops 57.93% as operating margin narrows to 6.54%
Revenue fell 16.13% sequentially, while costs declined 14.24%, leaving the company below the 12.22% median margin of 65 reported sector peers.
Filed 27 Oct 2026, 16:03 IST · after market close · Tribhovandas Bhimji Zaveri Ltd (TBZ)
Key takeaways
- Consolidated revenue fell -16.13% QoQ, while operating margin narrowed 2.06 percentage points to 6.54%.
- Net profit declined -57.93% QoQ as interest rose +2.56% and the tax rate increased 3.93 percentage points.
- TBZ's 6.54% operating margin was 5.68 percentage points below the 12.22% median of 65 Consumer Discretionary peers.
Price around the results
Revenue fell faster than expenses in Q2FY27
TBZ's consolidated revenue declined -16.13% QoQ to Rs 705.35 cr, while expenses fell only -14.24%. That mismatch reduced operating profit by -36.22% and pushed operating margin down 2.06 percentage points to 6.54%. The quarter followed Q1FY27 revenue of Rs 840.97 cr, indicating weaker sequential momentum.
Higher tax rate and interest amplified the profit decline
The operating squeeze was compounded below the operating line: interest rose +2.56% QoQ to Rs 19.23 cr even as operating profit fell. Profit before tax declined -55.51%, while the tax rate rose 3.93 percentage points to 31.21%, contributing to the -57.93% fall in net profit. Other income represented 9.06% of pre-tax profit, so reported earnings also included a meaningful non-operating contribution.
Margin stayed below the Consumer Discretionary peer median
TBZ's 6.54% operating margin was 5.68 percentage points below the 12.22% median among 65 Consumer Discretionary peers that had reported the quarter. The margin also declined from 8.60% in Q1FY27, marking a sequential deterioration in the available quarterly trend.
Results were filed after market close
The consolidated results were filed after market close on 27 October 2026. There is therefore no reported market reaction to place against the quarter yet.
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 | ₹705 cr | ₹841 cr | -16.13% |
| Other income | ₹2 cr | ₹2 cr | +13.25% |
| Expenses | ₹659 cr | ₹769 cr | -14.24% |
| Operating profit | ₹46 cr | ₹72 cr | -36.22% |
| Operating margin (%) | 6.54% | 8.60% | — |
| Interest | ₹19 cr | ₹19 cr | +2.56% |
| Depreciation | ₹8 cr | ₹9 cr | -6.53% |
| Profit before tax | ₹21 cr | ₹47 cr | -55.51% |
| Tax | ₹6 cr | ₹13 cr | -49.06% |
| Net profit | ₹14 cr | ₹34 cr | -57.93% |
| EPS (₹) | ₹2.14 | ₹5.08 | -57.87% |
Operating margin of 6.54% compares with a Consumer Discretionary sector median of 12.22% across 65 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -5.00% | -4.78% |
Volume on the results session was 0.44× its 20-day average.
What to watch
- Whether operating margin recovers from 6.54% after the 2.06-percentage-point QoQ decline.
- Whether expenses continue to decline faster than revenue after falling -14.24% versus revenue at -16.13% QoQ.
- Whether the tax rate moves down from 31.21% and interest from Rs 19.23 cr.