Chemplast swings to operating profit as expenses fall qoq
Revenue growth and lower expenses drove an 18.60-point margin recovery, but higher interest costs kept the company in a net loss.
Filed 04 Nov 2026, 16:08 IST · after market close · Chemplast Sanmar Ltd (CHEMPLASTS)
Key takeaways
- Revenue rose +17.65% qoq while expenses fell -2.20%, lifting operating margin by 18.60 percentage points to 8.41%.
- The consolidated net loss narrowed to Rs 5.45 cr from Rs 175.58 cr in Q1FY27, although interest expense rose +15.28% qoq.
- Chemplast's 8.41% operating margin was 4.86 percentage points below the 13.27% median for 111 reported Commodities peers.
Price around the results
A sharp sequential operating swing
The consolidated business moved from an operating loss of Rs 114.55 cr in Q1FY27 to an operating profit of Rs 111.25 cr. Revenue increased +17.65% qoq to Rs 1323.21 cr while expenses declined -2.20% to Rs 1211.96 cr, creating the 18.60-percentage-point margin recovery. The improvement also narrowed the net loss by 96.90% qoq.
Interest remained a drag on the recovery
Interest expense rose +15.28% qoq to Rs 68.27 cr, partly offsetting the operating improvement, while depreciation fell -9.65%. The reported tax rate increased by 11.56 percentage points to 35.96%, so a lower tax rate did not flatter the quarter's profit change. Other income contributed only Rs 3.64 cr and represented -42.77% of profit before tax because pre-tax profit remained negative.
Margin still trails the reported peer median
Among 111 Commodities peers that had reported, Chemplast's 8.41% operating margin was 4.86 percentage points below the sector median of 13.27% and ranked 30th from the bottom. The consolidated results were filed after market close on 04 Nov 2026 at 16:08 IST.
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 | ₹1,323 cr | ₹1,125 cr | +17.65% |
| Other income | ₹4 cr | ₹3 cr | +43.87% |
| Expenses | ₹1,212 cr | ₹1,239 cr | -2.20% |
| Operating profit | ₹111 cr | ₹-115 cr | — |
| Operating margin (%) | 8.41% | -10.19% | — |
| Interest | ₹68 cr | ₹59 cr | +15.28% |
| Depreciation | ₹55 cr | ₹61 cr | -9.65% |
| Profit before tax | ₹-9 cr | ₹-232 cr | +96.34% |
| Tax | ₹-3 cr | ₹-57 cr | +94.60% |
| Net profit | ₹-5 cr | ₹-176 cr | +96.90% |
| EPS (₹) | ₹-0.34 | ₹-11.10 | +96.94% |
Operating margin of 8.41% compares with a Commodities sector median of 13.27% across 111 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 8.41% after the 18.60-percentage-point sequential recovery.
- Whether interest expense moderates from its +15.28% qoq increase.
- Whether revenue growth of +17.65% is sustained without expenses reversing their -2.20% qoq decline.