CHEMCON margin drops 6.34 points as costs rise despite softer revenue
Standalone net profit fell -31.39% QoQ, while other income contributed 35.18% of pre-tax profit; the results were filed after market close.
Filed 24 Oct 2026, 18:43 IST · after market close · CHEMCON (CHEMCON)
Key takeaways
- Revenue slipped 1.56% QoQ while expenses rose 6.56%, cutting operating margin by 6.34 percentage points to 16.87%.
- Net profit fell 31.39% QoQ as operating profit dropped 28.45%, while the tax rate rose 1.06 percentage points.
- Other income contributed 35.18% of pre-tax profit, making reported earnings materially less dependent on operations.
Costs drove a sharp Q2 margin reset
CHEMCON's standalone revenue declined 1.56% QoQ, but expenses increased 6.56%, so operating profit fell 28.45%. That mismatch reduced operating margin by 6.34 percentage points to 16.87%. Depreciation rose 1.33%, partly adding to the pressure, while interest expense fell 21.18%.
Profit decline was larger than the revenue movement
Net profit fell 31.39% QoQ, far exceeding the 1.56% revenue decline, because the operating profit drop flowed through to pre-tax earnings. The tax rate increased 1.06 percentage points to 25.72%, adding to the pressure on net profit. Other income was 35.18% of pre-tax profit, so the reported earnings mix included a sizeable non-operating contribution.
Margin reversed the Q1 improvement
Operating margin fell from 23.21% in Q1FY27 to 16.87% in Q2FY27, reversing the sequential operating performance. The company filed these standalone results after market close on 24 October 2026, so the filing does not include a same-session market reaction.
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 | ₹65 cr | ₹66 cr | -1.56% |
| Other income | ₹4 cr | ₹4 cr | -4.30% |
| Expenses | ₹54 cr | ₹51 cr | +6.56% |
| Operating profit | ₹11 cr | ₹15 cr | -28.45% |
| Operating margin (%) | 16.87% | 23.21% | — |
| Interest | ₹1 cr | ₹1 cr | -21.18% |
| Depreciation | ₹4 cr | ₹4 cr | +1.33% |
| Profit before tax | ₹10 cr | ₹15 cr | -30.45% |
| Tax | ₹3 cr | ₹4 cr | -27.58% |
| Net profit | ₹8 cr | ₹11 cr | -31.39% |
| EPS (₹) | ₹2.05 | ₹2.99 | -31.44% |
What to watch
- Whether operating margin holds above 16.87% next quarter.
- Whether expenses continue to grow faster than revenue after the 6.56% QoQ increase.
- Whether other income remains as much as 35.18% of pre-tax profit.