Costs outpaced revenue, cutting Balaji Amines' operating margin
Sequential revenue growth was 2.56%, but faster expense growth drove a 13.63% decline in net profit.
Filed 02 Nov 2026, 18:39 IST · after market close · Balaji Amines Ltd (BALAMINES)
Key takeaways
- Consolidated revenue rose 2.56% sequentially, but expenses grew 7.64%, reducing operating margin by 3.69 percentage points to 21.72%.
- Consolidated net profit fell 13.63% sequentially to Rs 67.47 cr, despite the tax rate declining by 2.01 percentage points to 24.44%.
- Balaji Amines' 21.72% operating margin was 7.09 percentage points above the 14.63% median for 75 reported Commodities peers.
Price around the results
Expense growth erased sequential operating momentum
Consolidated revenue increased 2.56% sequentially, while expenses rose 7.64%. With costs growing faster than revenue, operating profit declined 12.33% and operating margin narrowed from 25.41% in Q1FY27 to 21.72%.
Lower tax rate softened the profit decline
Profit before tax fell 15.91% sequentially, while net profit declined 13.63%. The lower 24.44% tax rate partly cushioned the fall from operating performance; interest expense decreased 4.96%, but depreciation increased 11.18%. Other income accounted for 4.9% of pre-tax profit, so it was not the main source of reported profit.
Margin remained above the Commodities peer median
Balaji Amines' 21.72% consolidated operating margin was 7.09 percentage points above the 14.63% median among 75 Commodities companies that had reported the same quarter. The sequential margin decline still marks a clear deterioration from the 25.41% recorded in Q1FY27.
Results were filed after market close
The consolidated results were filed at 18:39 IST on 02 Nov 2026, after the market closed. The sequential comparison is therefore the clearest read on momentum in this release, with revenue up 2.56% but operating profit down 12.33%.
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 | ₹468 cr | ₹456 cr | +2.56% |
| Other income | ₹4 cr | ₹6 cr | -20.65% |
| Expenses | ₹366 cr | ₹340 cr | +7.64% |
| Operating profit | ₹102 cr | ₹116 cr | -12.33% |
| Operating margin (%) | 21.72% | 25.41% | — |
| Interest | ₹1 cr | ₹1 cr | -4.96% |
| Depreciation | ₹15 cr | ₹14 cr | +11.18% |
| Profit before tax | ₹89 cr | ₹106 cr | -15.91% |
| Tax | ₹22 cr | ₹28 cr | -22.29% |
| Net profit | ₹67 cr | ₹78 cr | -13.63% |
| EPS (₹) | ₹20.76 | ₹23.13 | -10.25% |
Operating margin of 21.72% compares with a Commodities sector median of 14.63% across 75 peers that have reported Q2FY27.
What to watch
- Whether expense growth moderates from 7.64% while revenue growth remains above 2.56%.
- Whether operating margin recovers from 21.72% after 25.41% in Q1FY27.
- Whether the tax rate stays near 24.44% without materially changing the gap between pre-tax and net-profit growth.