Bharat Coking Q1 FY27 Results (NSE: BHARATCOAL)
Signal: Revenue declined
The read
Q1FY27 standalone results show a sharp deterioration: net loss of ₹68 Cr vs profit of ₹177 Cr last year, driven by a 27% drop in production and negative operating leverage (EBITDA margin collapsed from 10% to 2%). While revenue grew 9% sequentially, the underlying core operations (ex-other income) are deeply loss-making. The EPS figure is inconsistent with reported net profit, requiring clarification from management. The company remains reliant on other income and deferred tax credits to narrow losses.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹3,587.27 Cr | -3.56% | +9.27% |
| EBIT | ₹-54.74 Cr | -124.7% | |
| Net profit | ₹-68.09 Cr | -138.5% | |
| EPS | ₹0.38 | +35.7% | |
| EBIT margin | 1.99% |
P&L walk
Revenue down 3.6% YoY but up 9.3% QoQ; core operating loss deepened as production fell sharply; EBITDA margin compressed from 10% to 2%; net loss after tax of ₹68 Cr vs profit of ₹177 Cr last year; EPS is inconsistent with net loss, likely a printing error.
Key positives
- Sequential revenue growth of 9.3% QoQ driven by higher offtake (+6.9%) and strong realization per tonne (+81% QoQ).
- Employee cost as % of revenue improved QoQ from 56.2% to 43.3%, indicating some cost controls.
- Stripping adjustment credit of ₹379.7 Cr (10.6% of revenue) helped cushion operating loss.
- Offtake volume (7.72 MT) exceeded production (6.56 MT), suggesting inventory reduction and potential demand improvement.
Key concerns
- Net loss of ₹68 Cr vs profit of ₹177 Cr YoY—a swing of ₹245 Cr.
- Production fell 27% YoY to 6.56 MT, the lowest in recent quarters, signaling operational issues.
- EBITDA margin dropped from 10% to 2%, with core operations (ex-other income) deeply negative (operating loss ~₹239 Cr).
- Other income declined 25% YoY to ₹136 Cr, reducing the cushion.
- Finance cost surged 84% YoY, increasing fixed charges.
- EPS reported positive (+₹0.38) despite net loss, a flag for potential data misalignment or accounting anomaly.
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