Chambal's margin rebounds, but higher interest keeps profit below last year
Operating margin rose 3.56 percentage points YoY as expenses fell faster than revenue, while interest rose 590.12%.
Filed 30 Jul 2026, 15:57 IST · after market close · Chambal Fertilisers & Chemicals Ltd (CHAMBLFERT)
Key takeaways
- Consolidated operating margin rose 3.56 percentage points year on year to 16.92% as expenses fell faster than revenue.
- Net profit fell 4.61% year on year despite an 11.79% rise in operating profit, as interest increased 590.12% and the tax rate rose 2.72 percentage points.
- Revenue increased 80.50% sequentially and operating margin recovered 7.76 percentage points from Q4FY26.
Price around the results
Operating profit improved despite lower year-on-year revenue
Chambal Fertilisers reported consolidated revenue of Rs 5,027.02 cr, down 11.77% year on year but up 80.50% sequentially. The sharper 15.40% year-on-year decline in expenses helped operating profit rise 11.79% to Rs 850.71 cr. Sequentially, expenses rose 65.07%, slower than revenue, supporting a 233.55% increase in operating profit.
Interest and tax absorbed the operating gain
Net profit declined 4.61% year on year even as operating profit increased, largely because interest expense rose 590.12% to Rs 16.77 cr. The tax rate also increased 2.72 percentage points year on year to 29.88%, and rose 8.58 percentage points sequentially. Other income contributed only 0.25% of pre-tax profit, so the quarter's earnings were not materially supported by non-operating income.
Margin recovered from Q4 but remains below the peer median
Operating margin rose from 9.16% in Q4FY26 to 16.92%, reversing the previous quarter's decline. The quarterly trend was 13.36% in Q1FY26, 13.13% in Q2FY26, 13.91% in Q3FY26, 9.16% in Q4FY26 and 16.92% in Q1FY27, indicating a sharp rebound rather than a continuous direction. The margin was 0.82 percentage points below the 17.74% median for 36 reported commodities peers, placing the company 16th from the bottom.
Results were filed after market close
The results were filed after market close, so there is no post-result stock reaction to assess yet. Across eight recent result reactions, the stock rose seven times and fell once, with a median absolute move of 5.12%, providing the historical context for the eventual response.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹5,027 cr | ₹2,785 cr | +80.50% | -11.77% |
| Other income | ₹2 cr | ₹53 cr | -96.51% | -97.68% |
| Expenses | ₹4,176 cr | ₹2,530 cr | +65.07% | -15.40% |
| Operating profit | ₹851 cr | ₹255 cr | +233.55% | +11.79% |
| Operating margin (%) | 16.92% | 9.16% | — | — |
| Interest | ₹17 cr | ₹3 cr | +552.53% | +590.12% |
| Depreciation | ₹89 cr | ₹90 cr | -1.14% | +5.45% |
| Profit before tax | ₹747 cr | ₹215 cr | +247.25% | -0.90% |
| Tax | ₹223 cr | ₹46 cr | +387.16% | +9.04% |
| Net profit | ₹524 cr | ₹169 cr | +209.38% | -4.61% |
| EPS (₹) | ₹13.07 | ₹4.23 | +208.98% | -4.60% |
Operating margin of 16.92% compares with a Commodities sector median of 17.74% across 36 peers that have reported Q1FY27.
What to watch
- Whether operating margin holds above 16.92% after the Q1FY27 rebound.
- Whether interest expense moves back from Rs 16.77 cr after its 590.12% year-on-year increase.
- Whether the 0.82-percentage-point gap to the 17.74% sector-peer median narrows.