Astec's operating margin plunges to -27.48% as costs rise on lower revenue
Revenue fell 13.81% QoQ while expenses rose 9.00%, driving the consolidated net loss to Rs 37.40 cr.
Filed 26 Oct 2026, 16:51 IST · after market close · Astec Lifesciences Ltd (ASTEC)
Key takeaways
- Consolidated operating margin fell 26.68 percentage points sequentially to -27.48% as revenue declined 13.81% while expenses rose 9.00%.
- Consolidated net loss widened to Rs 37.40 cr from Rs 18.71 cr in Q1FY27, with EPS worsening to Rs -16.79 from Rs -8.40.
- Astec's operating margin was 43.45 percentage points below the 15.97% median for 19 reported Commodities-sector peers, ranking it second from the bottom.
Price around the results
Revenue fell while the loss widened sharply
Astec reported consolidated revenue of Rs 72.02 cr in Q2FY27, down 13.81% sequentially, while expenses rose 9.00% to Rs 91.81 cr. That mismatch pushed operating profit to a loss of Rs 19.79 cr from a loss of Rs 0.67 cr in Q1FY27. The net loss consequently widened to Rs 37.40 cr from Rs 18.71 cr.
Costs drove a 26.68-point margin deterioration
Expenses grew as revenue contracted, reducing operating margin by 26.68 percentage points to -27.48%. Interest expense fell 8.54%, but depreciation rose 0.99%, so the below-operating-line costs still left profit before tax at a loss of Rs 37.43 cr. Other income was only 1.66% of pre-tax loss, and the 0.08% tax rate did not materially alter the reported loss.
Astec ranked near the bottom of its sector
Among 19 Commodities-sector peers that had reported the same quarter, Astec's operating margin was 43.45 percentage points below the 15.97% median. Its margin also deteriorated sharply from -0.80% in Q1FY27, making this a second consecutive quarter of negative operating margin. The results were filed after market close, so there is no market reaction to assess yet.
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 | ₹72 cr | ₹84 cr | -13.81% |
| Other income | ₹1 cr | ₹1 cr | -15.07% |
| Expenses | ₹92 cr | ₹84 cr | +9.00% |
| Operating profit | ₹-20 cr | ₹-1 cr | -2853.73% |
| Operating margin (%) | -27.48% | -0.80% | — |
| Interest | ₹7 cr | ₹8 cr | -8.54% |
| Depreciation | ₹11 cr | ₹11 cr | +0.99% |
| Profit before tax | ₹-37 cr | ₹-19 cr | -99.73% |
| Tax | ₹-0 cr | ₹-0 cr | +0.00% |
| Net profit | ₹-37 cr | ₹-19 cr | -99.89% |
| EPS (₹) | ₹-16.79 | ₹-8.40 | -99.88% |
Operating margin of -27.48% compares with a Commodities sector median of 15.97% across 19 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -1.22% | -1.20% |
Volume on the results session was 1.00× its 20-day average.
What to watch
- Whether revenue recovers from Rs 72.02 cr after the 13.81% sequential decline.
- Whether operating margin moves back above -27.48%.
- Whether the net loss narrows from Rs 37.40 cr and EPS improves from Rs -16.79.