Revenue fell 12.87%, while net profit dropped 59.41% QoQ
Costs contracted less than sales and interest rose 18.82%, squeezing operating margin by 2.28 percentage points.
Filed 03 Nov 2026, 14:56 IST · Bhagiradha Chemicals & Industries Ltd (BHAGCHEM)
Key takeaways
- Consolidated revenue fell -12.87% QoQ, while net profit dropped -59.41% to Rs 5.41 cr.
- Operating margin narrowed 2.28 percentage points to 13.37% as expenses declined -10.51%, less than revenue.
- Interest expense rose 18.82% QoQ, while the tax rate fell 6.35 percentage points to 17.67%, partly cushioning the profit decline.
Price around the results
Sales momentum weakened sharply in Q2FY27
Bhagiradha Chemicals’ consolidated revenue fell -12.87% QoQ, but operating profit declined faster at -25.58%, showing that the lower sales base did not translate proportionately into profit. Net profit fell -59.41% to Rs 5.41 cr as interest and depreciation costs increased. Other income contributed 7.61% of profit before tax, so it was not the main support for earnings.
Lower revenue absorption squeezed the margin
Expenses declined -10.51% QoQ, less than the -12.87% fall in revenue, causing operating margin to narrow by 2.28 percentage points to 13.37%. Interest expense rose 18.82% to Rs 7.64 cr and depreciation increased 8.03%, adding pressure below the operating line. The tax rate fell by 6.35 percentage points to 17.67%, which softened the impact on net profit but did not prevent the decline.
Margin was below the reported sector median
The company’s 13.37% operating margin was 0.81 percentage points below the 14.18% median for 92 Commodities peers that had reported the quarter. Sequentially, this was a clear deterioration from Q1FY27’s 15.65% margin, although the available trend shows only one prior quarter rather than a longer direction.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹170 cr | ₹195 cr | -12.87% |
| Other income | ₹1 cr | ₹2 cr | -71.91% |
| Expenses | ₹147 cr | ₹164 cr | -10.51% |
| Operating profit | ₹23 cr | ₹31 cr | -25.58% |
| Operating margin (%) | 13.37% | 15.65% | — |
| Interest | ₹8 cr | ₹6 cr | +18.82% |
| Depreciation | ₹9 cr | ₹8 cr | +8.03% |
| Profit before tax | ₹7 cr | ₹18 cr | -62.54% |
| Tax | ₹1 cr | ₹4 cr | -72.45% |
| Net profit | ₹5 cr | ₹13 cr | -59.41% |
| EPS (₹) | ₹0.42 | ₹1.03 | -59.22% |
Operating margin of 13.37% compares with a Commodities sector median of 14.18% across 92 peers that have reported Q2FY27.
What to watch
- Whether operating margin moves back above 13.37% after the 2.28-point QoQ decline.
- Whether interest expense reverses from Rs 7.64 cr after its 18.82% QoQ rise.
- Whether the tax rate remains near 17.67% versus Q1FY27’s 24.02%.