Aegis Logistics profit doubles YoY, but operating margin collapses sequentially
Expenses grew more than twice as fast as revenue sequentially, while other income contributed 59.16% of profit before tax.
Filed 26 Oct 2026, 19:34 IST · after market close · Aegis Logistics Ltd (AEGISLOG)
Key takeaways
- Standalone operating margin fell 31.93 percentage points sequentially to 11.92% as expenses grew 146.47%, far faster than revenue growth of 57.13%.
- Net profit rose 103.73% year on year to Rs 339.64 cr, helped by revenue growth of 63.38% and a 0.75 percentage-point reduction in the tax rate.
- Other income accounted for 59.16% of profit before tax, making the quarter's profit mix materially dependent on non-operating income.
Price around the results
Sequential margin reset overwhelms revenue growth
Aegis Logistics reported standalone revenue growth of 57.13% sequentially, but expenses rose 146.47%, causing operating margin to contract by 31.93 percentage points to 11.92%. This reversed the sharp improvement seen in Q1FY27, when operating margin was 43.85%, and leaves the company below the Energy-sector median of 12.83% across six reported peers. Year on year, the picture is better: revenue grew 63.38% while expenses rose 55.96%, lifting operating margin by 4.19 percentage points.
Other income remains central to reported profit
Other income rose 74.13% year on year and represented 59.16% of profit before tax, so net profit growth was not driven only by operating performance. The tax rate fell 0.75 percentage points year on year to 24.86%, also providing a modest uplift to earnings. Interest expense increased 178.24% year on year, partly offsetting the benefit from higher other income.
Capacity additions and Tristar plan shape the business narrative
The presentation says upcoming capacity includes 129kMT of LPG and 0.5mnKL of liquid storage, while it flags a widening LPG demand-supply shortfall being met through imports. Management said non-urea fertiliser demand is expected to grow at approximately 4–5% annually from FY24 to FY29, and the presentation identifies a target of 5MTPA of green hydrogen by 2030. Management also said Aegis proposes to acquire approximately 89.8% of Tristar for US$809mn, with completion expected in Q4 FY27.
Market reaction is pending after the late filing
The standalone results were filed after market close, so there is no reported post-results stock reaction yet. Across the last eight results, the stock rose four times and fell four times, with a median absolute move of 1.67%; the recent recorded moves ranged from -1.67% to +4.82%.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,679 cr | ₹1,069 cr | +57.13% | +63.38% |
| Other income | ₹267 cr | ₹69 cr | +289.87% | +74.13% |
| Expenses | ₹1,479 cr | ₹600 cr | +146.47% | +55.96% |
| Operating profit | ₹200 cr | ₹469 cr | -57.29% | +151.84% |
| Operating margin (%) | 11.92% | 43.85% | — | — |
| Interest | ₹9 cr | ₹4 cr | +154.99% | +178.24% |
| Depreciation | ₹6 cr | ₹6 cr | +8.32% | +10.47% |
| Profit before tax | ₹452 cr | ₹528 cr | -14.37% | +101.68% |
| Tax | ₹112 cr | ₹134 cr | -15.96% | +95.73% |
| Net profit | ₹340 cr | ₹394 cr | -13.83% | +103.73% |
| EPS (₹) | ₹9.68 | ₹11.23 | -13.80% | +103.79% |
Operating margin of 11.92% compares with a Energy sector median of 12.83% across 6 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -7.05% | -7.03% |
Volume on the results session was 3.26× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- Non-urea fertilizer demand is expected to grow at approximately 4–5% annually from FY24 to FY29.
- The presentation identifies a target of 5MTPA of green hydrogen by 2030.
Expansion
- Upcoming capacity includes 129kMT for LPG and 0.5mnKL of liquid storage capacity.
- Aegis proposes to acquire approximately 89.8% of Tristar for US$809mn in equity consideration.
- The proposed Tristar acquisition is expected to be completed in Q4 FY27.
Problems & risks
- The presentation identifies a widening LPG demand-supply shortfall, with imports plugging the gap.
What to watch
- Whether standalone operating margin recovers from 11.92% after the 31.93 percentage-point sequential decline.
- Whether other income remains close to 59.16% of profit before tax.
- Updates on the proposed US$809mn Tristar acquisition ahead of the stated Q4 FY27 completion timeline.