Bodal Chemicals' Q2 margin improves, but other income lifts profit
Standalone operating margin rose 2.73 percentage points QoQ as revenue growth outpaced expense growth, while the lower tax rate amplified profit growth.
Filed 03 Nov 2026, 14:15 IST · Bodal Chemicals Ltd (BODALCHEM)
Key takeaways
- Standalone operating profit rose 55.77% QoQ as revenue grew 22.11%, faster than expenses at 18.41%.
- Standalone net profit increased 179.60% QoQ, but other income contributed 21.85% of profit before tax and the tax rate fell 15.02 percentage points.
- Operating margin improved 2.73 percentage points to 12.64%, but remained 1.97 percentage points below the 14.61% median for 78 reported Commodities peers.
Price around the results
Benzene division adds to Q2 standalone revenue momentum
Revenue growth of 22.11% QoQ outpaced expense growth of 18.41%, helping operating profit grow 55.77%. Management said the Benzene downstream products division at Saykha began contributing to topline during H1FY27, while its Turkish, Chinese and BCTPL subsidiaries performed satisfactorily in Q2FY27. There is no year-on-year comparison in the reported results.
Margin expansion came with a lower tax rate and other-income support
Operating margin expanded 2.73 percentage points as costs grew more slowly than revenue. Interest expense rose 6.90% QoQ and depreciation increased 2.04%, but these did not prevent the operating improvement from reaching profit before tax. Other income accounted for 21.85% of profit before tax, while the tax rate fell 15.02 percentage points, so the 179.60% rise in net profit was not driven by operations alone.
Margin improved sequentially but stayed below the peer median
Operating margin rose from 9.91% in Q1FY27 to 12.64% in Q2FY27, marking a sequential improvement in the reported trend. It was still 1.97 percentage points below the 14.61% median among 78 Commodities peers that had reported the quarter. The result therefore shows better momentum without yet matching the sector comparison.
Management points to benzene contribution and efficiency measures
Management said structural changes in China and stabilisation of the Benzene downstream products plant should support better performance in coming quarters, and that the division is expected to make a meaningful quarter-on-quarter contribution. The company identified new greenfield expansion and ongoing internal efficiencies as part of its way forward. Management also flagged environmental compliance costs, rising industrial water and power rates, and water scarcity as operating challenges.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹853 cr | ₹698 cr | +22.11% |
| Other income | ₹20 cr | ₹5 cr | +272.92% |
| Expenses | ₹745 cr | ₹629 cr | +18.41% |
| Operating profit | ₹108 cr | ₹69 cr | +55.77% |
| Operating margin (%) | 12.64% | 9.91% | — |
| Interest | ₹20 cr | ₹19 cr | +6.90% |
| Depreciation | ₹18 cr | ₹17 cr | +2.04% |
| Profit before tax | ₹90 cr | ₹39 cr | +132.58% |
| Tax | ₹10 cr | ₹10 cr | -3.41% |
| Net profit | ₹80 cr | ₹29 cr | +179.60% |
| EPS (₹) | ₹6.39 | ₹2.29 | +179.04% |
Operating margin of 12.64% compares with a Commodities sector median of 14.61% across 78 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
- The Benzene downstream products division at Saykha started contributing to topline during H1FY27.
- The Turkish, Chinese and BCTPL subsidiaries performed satisfactorily during Q2FY27.
Guidance & outlook
- The company anticipates that improved performance will continue in coming quarters due to changes in China and stabilization of the Benzene downstream plant.
- The Benzene downstream products division is expected to make a meaningful quarter-on-quarter contribution.
Expansion
- The company lists new greenfield expansion as part of its way forward.
New initiatives
- The company identifies ongoing internal efficiencies as part of its way forward.
Problems & risks
- The company identifies high compliance costs for environmental regulations as a key challenge.
- The company says rising industrial water and power rates are a concern.
- Water scarcity could result in insufficient supply affecting production needs.
- The company says the chemical industry is energy- and CO2-intensive and contributes over 30% of global GHG emissions.
- The company reported raw-material pressure, which improved realization helped absorb in the Dyestuffs business.
What to watch
- Whether operating margin remains above 12.64% as the Benzene downstream products division contributes further.
- Whether revenue growth stays ahead of expense growth, versus 22.11% and 18.41% QoQ in Q2FY27.
- Whether other income's contribution to profit before tax remains near 21.85%.