UFBL swings to Q2 loss as expenses outpace revenue
Revenue rose +0.81% qoq while expenses grew +3.75%, and higher depreciation and interest pushed pre-tax profit into the red.
Filed 02 Nov 2026, 12:54 IST · UFBL (UFBL)
Key takeaways
- UFBL's consolidated net profit swung to a loss of Rs 6.44 cr in Q2FY27 from a profit of Rs 2.31 cr in Q1FY27 as depreciation and interest outweighed operating profit.
- Expenses grew +3.75% qoq against revenue growth of +0.81%, cutting operating margin by 2.44 percentage points to 13.96%.
- The tax rate rose 15.50 percentage points qoq to 20.68%, while other income's reported share of pre-tax profit was -55.67%.
Depreciation and interest erased operating profit
UFBL reported a consolidated pre-tax loss of Rs 8.12 cr in Q2FY27, against a profit before tax of Rs 2.43 cr in Q1FY27. Operating profit of Rs 59.96 cr was more than offset by depreciation of Rs 48.95 cr and interest of Rs 23.64 cr. The tax credit of Rs 1.68 cr reduced the reported net loss to Rs 6.44 cr but did not change the quarter's negative result.
Costs grew faster than revenue
Revenue increased +0.81% qoq, but expenses rose +3.75%, so operating margin narrowed by 2.44 percentage points to 13.96%. Interest costs also increased +3.01% and depreciation rose +7.09%, adding pressure below the operating-profit line. This was a cost-led deterioration rather than a revenue contraction.
Sequential margin direction turned lower
The operating margin declined from 16.40% in Q1FY27 to 13.96% in Q2FY27, marking a clear sequential weakening across the two reported quarters. Other income rose +264.52% qoq to Rs 4.52 cr, but its reported share of pre-tax profit was -55.67% because pre-tax profit was negative. The higher tax rate, up 15.50 percentage points from Q1FY27, did not prevent the shift to a net loss.
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 | ₹429 cr | ₹426 cr | +0.81% |
| Other income | ₹5 cr | ₹1 cr | +264.52% |
| Expenses | ₹369 cr | ₹356 cr | +3.75% |
| Operating profit | ₹60 cr | ₹70 cr | -14.17% |
| Operating margin (%) | 13.96% | 16.40% | — |
| Interest | ₹24 cr | ₹23 cr | +3.01% |
| Depreciation | ₹49 cr | ₹46 cr | +7.09% |
| Profit before tax | ₹-8 cr | ₹2 cr | — |
| Tax | ₹-2 cr | ₹0 cr | — |
| Net profit | ₹-6 cr | ₹2 cr | — |
| EPS (₹) | ₹-1.57 | ₹0.79 | — |
What to watch
- Whether operating margin recovers from 13.96% after the 2.44-percentage-point qoq decline.
- Whether expense growth moderates from +3.75% against revenue growth of +0.81%.
- Whether depreciation of Rs 48.95 cr and interest of Rs 23.64 cr continue to exceed operating profit of Rs 59.96 cr.