Arfin India profit rises 46.68% QoQ as margin slips
Revenue rose +33.09% QoQ, while faster expense growth and higher interest limited operating leverage.
Filed 03 Nov 2026, 12:34 IST · Arfin India Ltd (ARFIN)
Key takeaways
- Consolidated revenue rose +33.09% QoQ, but expenses grew +33.17%, trimming operating margin by 0.05 percentage points to 4.72%.
- Consolidated net profit increased +46.68% QoQ to Rs 5.97 cr despite a +12.67% rise in interest expense.
- Arfin India's 4.72% operating margin was 9.46 percentage points below the 14.18% median for 92 reported Commodities peers.
Price around the results
Revenue growth did not fully convert into operating profit
Arfin India's consolidated revenue increased +33.09% QoQ to Rs 283.18 cr, while operating profit rose +31.63% to Rs 13.36 cr. Operating-profit growth therefore lagged revenue growth, leaving the margin 0.05 percentage points lower at 4.72%. Net profit still rose +46.68% to Rs 5.97 cr as profit before tax increased +54.74%, despite the tax rate rising 4.66 percentage points.
Cost growth and interest kept margins below peers
Expenses grew +33.17%, fractionally faster than revenue, which explains the sequential margin contraction. Interest expense rose +12.67%, adding pressure below operating profit. Other income contributed only 1.39% of profit before tax, so the quarter's earnings were not materially supported by non-operating income. The 4.72% operating margin was 9.46 percentage points below the 14.18% median of 92 Commodities peers that had reported.
Shares rose after the results
Arfin India's shares rose +4.21% on 3 November, with a -0.27% opening gap and +2.63% relative performance. Trading volume was 1.42 times the reference level on the result day.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹283 cr | ₹213 cr | +33.09% |
| Other income | ₹0 cr | ₹0 cr | -47.37% |
| Expenses | ₹270 cr | ₹203 cr | +33.17% |
| Operating profit | ₹13 cr | ₹10 cr | +31.63% |
| Operating margin (%) | 4.72% | 4.77% | — |
| Interest | ₹5 cr | ₹5 cr | +12.67% |
| Depreciation | ₹1 cr | ₹1 cr | +1.67% |
| Profit before tax | ₹7 cr | ₹5 cr | +54.74% |
| Tax | ₹1 cr | ₹1 cr | +116.07% |
| Net profit | ₹6 cr | ₹4 cr | +46.68% |
| EPS (₹) | ₹0.35 | ₹0.24 | +45.83% |
Operating margin of 4.72% compares with a Commodities sector median of 14.18% across 92 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +4.21% | +2.63% |
Volume on the results session was 1.42× its 20-day average.
What to watch
- Whether operating margin moves above or below 4.72% next quarter.
- Whether expenses continue to grow faster than revenue, after +33.17% versus +33.09% QoQ.
- Whether interest growth moderates from +12.67% QoQ.