Costs outpaced revenue, cutting Aksharchem's margin by 2.99 points
Standalone revenue rose +13.92% qoq, but faster expense growth drove a -12.43% decline in net profit.
Filed 19 Oct 2026, 17:37 IST · after market close · AKSHARCHEM (AKSHARCHEM)
Key takeaways
- Revenue grew +13.92% qoq, but expenses grew faster at +17.98%, reducing operating profit by -7.29%.
- Operating margin narrowed by 2.99 percentage points qoq to 13.07% as costs outpaced revenue growth.
- Net profit fell -12.43% qoq to Rs 13.32 cr, with the higher 5.42% tax rate and 6.01% rise in interest adding pressure.
Revenue growth did not convert into higher profit
Aksharchem's standalone revenue increased +13.92% qoq to Rs 160.48 cr, but operating profit declined -7.29% to Rs 20.97 cr. The mismatch came from expenses rising +17.98%, faster than revenue. Net profit consequently fell -12.43% qoq to Rs 13.32 cr, while EPS declined -12.46% to Rs 16.58.
Higher costs and financing charges squeezed margins
Operating margin narrowed 2.99 percentage points qoq to 13.07% because expenses grew faster than revenue. Interest costs rose 6.01% to Rs 2.47 cr, while the tax rate increased 0.81 percentage points to 5.42%. Other income contributed only 0.21% of pre-tax profit, so earnings were not materially supported by non-operating income.
Sequential comparison and filing timing
Compared with Q1FY27, revenue improved but operating profit, pre-tax profit and net profit all declined, marking a weaker profit conversion quarter. The results were filed after market close on 19 Oct 2026, so no market reaction is covered here.
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 |
|---|---|---|---|
| Revenue | ₹160 cr | ₹141 cr | +13.92% |
| Other income | ₹0 cr | ₹0 cr | +0.00% |
| Expenses | ₹140 cr | ₹118 cr | +17.98% |
| Operating profit | ₹21 cr | ₹23 cr | -7.29% |
| Operating margin (%) | 13.07% | 16.06% | — |
| Interest | ₹2 cr | ₹2 cr | +6.01% |
| Depreciation | ₹4 cr | ₹4 cr | +1.83% |
| Profit before tax | ₹14 cr | ₹16 cr | -11.66% |
| Tax | ₹1 cr | ₹1 cr | +2.70% |
| Net profit | ₹13 cr | ₹15 cr | -12.43% |
| EPS (₹) | ₹16.58 | ₹18.94 | -12.46% |
What to watch
- Whether operating margin recovers from 13.07% after the 2.99-percentage-point qoq decline.
- Whether expense growth moderates from +17.98% against revenue growth of +13.92%.
- Whether interest remains near Rs 2.47 cr and the tax rate near 5.42%.