Apcotex margin narrows 10.59 points as expenses rise 7.85% sequentially
Revenue fell 5.08% QoQ, while a higher tax rate and a 9.52% other-income contribution to PBT added to the earnings pressure.
Filed 28 Oct 2026, 14:43 IST · Apcotex Industries Ltd (APCOTEXIND)
Key takeaways
- Standalone net profit fell 55.87% QoQ as revenue declined 5.08% while expenses rose 7.85%.
- Operating margin narrowed by 10.59 percentage points to 11.69%, leaving Apcotex 0.66 points above the 11.03% median for 47 reported Industrials peers.
- Other income contributed 9.52% of pre-tax profit, while the tax rate rose by 3.03 percentage points to 27.60%, weakening profit quality.
Price around the results
Revenue slipped, but costs moved the other way
Apcotex’s standalone net profit declined 55.87% QoQ, with EPS falling 55.88%. The squeeze came despite a 5.08% revenue decline because expenses increased 7.85%. Interest expense also rose 18.60%, adding pressure below operating profit.
Operating margin gave back 10.59 percentage points
Operating margin narrowed by 10.59 percentage points to 11.69% because costs grew while revenue contracted. The tax rate increased by 3.03 percentage points to 27.60%, further reducing the conversion of pre-tax profit into net profit. Other income accounted for 9.52% of pre-tax profit, so reported earnings also included a meaningful non-operating contribution.
Margin stayed above peers despite the sharp sequential decline
Apcotex’s 11.69% operating margin was 0.66 percentage points above the 11.03% median among 47 Industrials companies that had reported the quarter. The available sequential direction was sharply negative, with margin falling from 22.28% in Q1FY27. There is no year-on-year comparison in the reported data.
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 | ₹499 cr | ₹526 cr | -5.08% |
| Other income | ₹5 cr | ₹3 cr | +60.85% |
| Expenses | ₹441 cr | ₹409 cr | +7.85% |
| Operating profit | ₹58 cr | ₹117 cr | -50.18% |
| Operating margin (%) | 11.69% | 22.28% | — |
| Interest | ₹3 cr | ₹2 cr | +18.60% |
| Depreciation | ₹13 cr | ₹13 cr | -2.36% |
| Profit before tax | ₹48 cr | ₹105 cr | -54.61% |
| Tax | ₹13 cr | ₹26 cr | -49.01% |
| Net profit | ₹35 cr | ₹79 cr | -55.87% |
| EPS (₹) | ₹6.72 | ₹15.23 | -55.88% |
Operating margin of 11.69% compares with a Industrials sector median of 11.03% across 47 peers that have reported Q2FY27.
What to watch
- Whether operating margin recovers from 11.69% after the 10.59 percentage-point sequential decline.
- Whether expenses reverse the 7.85% QoQ increase while revenue stabilises after the 5.08% decline.
- Whether the tax rate moves back from 27.60% and other income remains below its 9.52% share of pre-tax profit.