Chemfab Alkalis swings to loss as costs outpace revenue
Revenue rose 3.35% sequentially, but expenses grew 8.81%, while depreciation and interest pushed the company to a pre-tax loss.
Filed 28 Oct 2026, 19:52 IST · after market close · Chemfab Alkalis Ltd (CHEMFAB)
Key takeaways
- Chemfab Alkalis swung to a consolidated net loss of Rs 2.11 crore in Q2FY27 from a Rs 5.73 crore profit in Q1FY27.
- Operating margin fell 4.53 percentage points sequentially to 9.31% as expenses grew 8.81% against 3.35% revenue growth.
- Chemfab's operating margin was 5.32 percentage points below the 14.63% median for 35 reported commodities peers.
Price around the results
Q2FY27 moved from profit to loss
Chemfab Alkalis reported a consolidated net loss of Rs 2.11 crore in Q2FY27, compared with a Rs 5.73 crore profit in Q1FY27. Operating profit remained positive at Rs 7.04 crore, but depreciation of Rs 7.9 crore and interest of Rs 2.46 crore pushed profit before tax to a loss of Rs 2.95 crore. Other income fell to Rs 0.37 crore from Rs 2.08 crore sequentially, so it did not offset the operating and finance charges.
Expense growth cut operating margin
Revenue increased 3.35% sequentially, while expenses rose 8.81%, causing operating margin to narrow by 4.53 percentage points to 9.31%. Interest expense also increased 11.31%, adding to the pressure below the operating line. The Q1 profit had also included a tax benefit, whereas Q2FY27 reported a tax rate of 28.42%, a sequential change of 186.12 percentage points.
Margin trails the commodities peer median
Chemfab's 9.31% operating margin was 5.32 percentage points below the 14.63% median among 35 commodities peers that had reported the same quarter. The sequential margin decline from 13.84% marks a weaker quarter on operating conversion, though the available trend covers Q1FY27 and Q2FY27 rather than a longer run of quarters.
Results were filed after market close
The consolidated results were filed after market close on 28 October 2026. No post-results stock reaction is covered here because the results were too fresh for a market response.
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 | ₹76 cr | ₹73 cr | +3.35% |
| Other income | ₹0 cr | ₹2 cr | -82.21% |
| Expenses | ₹69 cr | ₹63 cr | +8.81% |
| Operating profit | ₹7 cr | ₹10 cr | -30.50% |
| Operating margin (%) | 9.31% | 13.84% | — |
| Interest | ₹2 cr | ₹2 cr | +11.31% |
| Depreciation | ₹8 cr | ₹8 cr | +1.54% |
| Profit before tax | ₹-3 cr | ₹2 cr | — |
| Tax | ₹-1 cr | ₹-4 cr | +76.07% |
| Net profit | ₹-2 cr | ₹6 cr | — |
| EPS (₹) | ₹-1.47 | ₹3.99 | — |
Operating margin of 9.31% compares with a Commodities sector median of 14.63% across 35 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -3.95% | -5.00% |
Volume on the results session was 1.50× its 20-day average.
What to watch
- Whether expense growth comes back in line with revenue growth after 8.81% versus 3.35% in Q2FY27.
- Whether operating margin recovers from 9.31% toward the Q1FY27 level of 13.84%.
- Whether interest expense stays near Rs 2.46 crore and depreciation near Rs 7.9 crore.