Ashapura Minechem profit drops 35.64% despite sequential margin gain
Revenue fell 34.20% QoQ, while a lower tax rate and other income softened the decline; the results were filed after market close.
Filed 05 Nov 2026, 19:30 IST · after market close · Ashapura Minechem Ltd (ASHAPURMIN)
Key takeaways
- Consolidated revenue fell 34.20% QoQ, but expenses fell 34.60%, lifting operating margin by 0.54 percentage points to 11.76%.
- Net profit declined 35.64% QoQ as interest rose 8.94%, although the tax rate fell by 6.34 percentage points to 10.36%.
- Other income accounted for 22.70% of pre-tax profit, while operating margin was 1.09 percentage points below the 12.85% median for 126 reported commodities peers.
Price around the results
Revenue contraction cut profit despite firmer margin
Ashapura Minechem reported consolidated revenue of Rs 1,063.40 cr, down 34.20% QoQ, and operating profit fell 31.01% to Rs 125.07 cr. Net profit declined 35.64% to Rs 69.71 cr, while EPS fell 55.18% to Rs 5.41. The sharper decline in pre-tax profit, at 40.19%, shows that the margin improvement did not offset the smaller revenue base.
Lower costs helped margins, but profit quality weakened
Expenses fell 34.60%, slightly faster than revenue, lifting operating margin by 0.54 percentage points from Q1FY27. Interest rose 8.94% to Rs 31.45 cr even as operating profit declined. Other income made up 22.70% of pre-tax profit, while the lower 10.36% tax rate cushioned the fall in net profit.
Margin recovered sequentially but stayed below sector median
Operating margin improved from 11.22% in Q1FY27 to 11.76% in Q2FY27, marking a sequential recovery. It remained 1.09 percentage points below the 12.85% median among 126 commodities peers that had reported the quarter.
After-close filing leaves market reaction pending
The company filed its consolidated results after market close, so this readout does not include a stock-market reaction.
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 | ₹1,063 cr | ₹1,616 cr | -34.20% |
| Other income | ₹18 cr | ₹14 cr | +23.25% |
| Expenses | ₹938 cr | ₹1,435 cr | -34.60% |
| Operating profit | ₹125 cr | ₹181 cr | -31.01% |
| Operating margin (%) | 11.76% | 11.22% | — |
| Interest | ₹31 cr | ₹29 cr | +8.94% |
| Depreciation | ₹34 cr | ₹37 cr | -8.77% |
| Profit before tax | ₹78 cr | ₹130 cr | -40.19% |
| Tax | ₹8 cr | ₹22 cr | -62.89% |
| Net profit | ₹70 cr | ₹108 cr | -35.64% |
| EPS (₹) | ₹5.41 | ₹12.07 | -55.18% |
Operating margin of 11.76% compares with a Commodities sector median of 12.85% across 126 peers that have reported Q2FY27.
What to watch
- Whether revenue recovers from Rs 1,063.40 cr while operating margin holds above 11.76%.
- Whether interest reverses its 8.94% QoQ increase from Rs 31.45 cr.
- Whether other income remains below or above its 22.70% contribution to pre-tax profit.