Augmont's margin improved, but remains 12.23 points below peer median
Expenses fell faster than revenue QoQ, lifting operating margin to 1.04%; other income supplied 10.25% of pre-tax profit.
Filed 04 Nov 2026, 21:05 IST · after market close · Augmont Enterprises Ltd (AUGMONT)
Key takeaways
- Consolidated operating profit rose +209.59% QoQ even as revenue fell -16.42%, because expenses declined faster at -17.05%.
- Operating margin improved by 0.76 percentage points to 1.04%, but remained 12.23 percentage points below the median of 111 commodity peers.
- Other income contributed 10.25% of profit before tax, while interest expense increased +4312.20% QoQ to Rs 18.09 cr.
Price around the results
Revenue fell as exports faced external disruption
Consolidated revenue declined -16.42% QoQ to Rs 15,835.51 cr, while expenses fell -17.05% to Rs 15,671.18 cr. Management said geopolitical disruptions in the Middle East reduced export volumes year on year and that elevated crude prices added to the difficult external environment. The company also said it expanded domestic scrap-gold sourcing by adding recycling partners, a move that carried near-term acquisition costs.
Lower costs lifted margin, but financing costs surged
Because expenses contracted faster than revenue, operating margin increased by 0.76 percentage points from Q1FY27, to 1.04%. Interest expense rose +4312.20% QoQ to Rs 18.09 cr, limiting the benefit of the higher operating profit. The tax rate eased by 0.46 percentage points, while other income accounted for 10.25% of profit before tax, making earnings quality an important consideration.
Sequential improvement still leaves Augmont near the sector's lower end
Operating profit increased +209.59% QoQ and net profit rose +97.70%, despite the fall in revenue. Operating margin moved up from 0.28% in Q1FY27 to 1.04% in Q2FY27, marking an improvement across the two reported quarters rather than a sustained multi-quarter trend. The margin was 12.23 percentage points below the 13.27% median for 111 reported commodity peers, placing Augmont 10th from the bottom.
Management is linking margin recovery to recycling and platform expansion
Management said new recycling relationships are expected to mature and contribute to improved margins over the coming quarters. It also said SPOT 2.0 is intended to increase jeweller onboarding, while the Electronic Gold Receipt product being developed with NSE is expected to launch during the current financial year. The company said export sales recovered sequentially from Q4FY26 despite continued uncertainty.
Results were filed after market close
The consolidated results were filed after market close. There is no post-results stock reaction to assess in this update.
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 | ₹15,836 cr | ₹18,946 cr | -16.42% |
| Other income | ₹16 cr | ₹31 cr | -46.94% |
| Expenses | ₹15,671 cr | ₹18,893 cr | -17.05% |
| Operating profit | ₹164 cr | ₹53 cr | +209.59% |
| Operating margin (%) | 1.04% | 0.28% | — |
| Interest | ₹18 cr | ₹0 cr | +4312.20% |
| Depreciation | ₹2 cr | ₹2 cr | +5.21% |
| Profit before tax | ₹161 cr | ₹82 cr | +96.48% |
| Tax | ₹40 cr | ₹21 cr | +92.98% |
| Net profit | ₹120 cr | ₹61 cr | +97.70% |
| EPS (₹) | ₹13.70 | ₹6.91 | +98.26% |
Operating margin of 1.04% compares with a Commodities sector median of 13.27% across 111 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Export sales recovered sequentially from Q4 FY26 despite continued uncertainty.
- Augmont expanded domestic scrap-gold sourcing during the quarter by adding recycling partners and strengthening ecosystem relationships.
Guidance & outlook
- Augmont expects new recycling relationships to mature and contribute to improved margins over the coming quarters.
- Augmont expects the Electronic Gold Receipt product with NSE to launch during the current financial year.
- Augmont remains confident in the platform's structural growth trajectory.
Expansion
- The SPOT 2.0 strategy includes increasing the onboarding of jewellers.
New products
- Augmont and NSE are developing an Electronic Gold Receipt product expected to launch this financial year.
New initiatives
- Augmont accelerated domestic scrap-gold sourcing by onboarding new recycling partners and deepening ecosystem relationships.
- Augmont signed an MOU with NSE for an Electronic Gold Receipts ecosystem.
- SPOT 2.0 aims to bring everything a jeweller needs into one platform.
Competition
- Augmont describes SPOT as India's largest nationwide bullion trading platform.
Problems & risks
- Augmont identified geopolitical disruptions in the Middle East and elevated crude oil prices as challenging external conditions.
- Geopolitical disruptions in the Middle East reduced export volumes year on year during the quarter.
- Accelerating domestic scrap-gold sourcing caused near-term acquisition costs and compressed margins.
- International sales were unusually concentrated in the prior-year first quarter, contributing to the year-on-year PAT decline.
What to watch
- Whether consolidated operating margin moves up from 1.04% as recycling relationships mature.
- Whether other income's 10.25% share of profit before tax reduces in the next quarter.
- Whether revenue recovers from Rs 15,835.51 cr while export conditions remain uncertain.