Archean Chemical's margin expands as expenses fall faster than revenue
Consolidated operating margin rose 3.05 percentage points QoQ to 23.61%, while net profit increased 3.23% despite a 9.12% revenue decline.
Filed 29 Oct 2026, 18:30 IST · after market close · Archean Chemical Industries Ltd (ACI)
Key takeaways
- Consolidated revenue fell 9.12% QoQ, but operating profit rose 4.37% as expenses declined 12.61%.
- Operating margin expanded 3.05 percentage points QoQ to 23.61%, 8.68 percentage points above the 14.93% median for 42 reported commodity peers.
- Net profit rose 3.23% QoQ to Rs 31.33 cr, while other income accounted for 9.29% of pre-tax profit.
Price around the results
Revenue declined, but operating profit improved
Archean Chemical Industries reported consolidated revenue of Rs 297.36 cr, down 9.12% QoQ, while operating profit increased 4.37% to Rs 70.2 cr. The fall in revenue did not flow through to operating profit because expenses declined 12.61%, faster than revenue. Net profit consequently rose 3.23% to Rs 31.33 cr.
Lower interest costs supported profit quality
Operating margin widened by 3.05 percentage points to 23.61% as expenses fell faster than revenue. Interest costs declined 10.64%, helping profit before tax rise 3.41%, while the tax rate increased 0.13 percentage points, so a lower tax rate did not flatter net profit. Other income fell 24.24% to Rs 4.25 cr and represented 9.29% of pre-tax profit.
Margin stayed above the commodity-peer median
Archean Chemical's 23.61% operating margin was 8.68 percentage points above the 14.93% median for 42 commodity peers that had reported the quarter. The margin also improved from 20.56% in Q1FY27, marking a clear sequential recovery.
Results were filed after market close
The consolidated results were filed at 18:30 IST on 29 Oct 2026, after market close. The market response was therefore not yet part of this update.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹297 cr | ₹327 cr | -9.12% |
| Other income | ₹4 cr | ₹6 cr | -24.24% |
| Expenses | ₹227 cr | ₹260 cr | -12.61% |
| Operating profit | ₹70 cr | ₹67 cr | +4.37% |
| Operating margin (%) | 23.61% | 20.56% | — |
| Interest | ₹5 cr | ₹5 cr | -10.64% |
| Depreciation | ₹24 cr | ₹23 cr | +2.84% |
| Profit before tax | ₹46 cr | ₹44 cr | +3.41% |
| Tax | ₹14 cr | ₹14 cr | +3.90% |
| Net profit | ₹31 cr | ₹30 cr | +3.23% |
| EPS (₹) | ₹2.60 | ₹2.48 | +4.84% |
Operating margin of 23.61% compares with a Commodities sector median of 14.93% across 42 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 23.61% after the 3.05 percentage-point QoQ improvement
- Whether revenue improves from Rs 297.36 cr after the 9.12% QoQ decline
- Whether other income remains below the 9.29% share of pre-tax profit