Coromandel's margin rebounds QoQ but remains below year-ago level
Revenue rose 15.94% year on year, but expenses grew 28.37%, pushing operating profit down 9.16% and net profit down 23.93%.
Filed 23 Jul 2026, 14:23 IST · Coromandel International Ltd (COROMANDEL)
Key takeaways
- Consolidated net profit fell 23.93% year on year to Rs 381.56 cr as expenses grew 18.35%, faster than revenue at 15.94%.
- Operating margin improved 1.14 percentage points sequentially to 9.26% after two quarters of decline, but remained 1.85 percentage points below Q1FY26.
- The stock fell 2.87% in the next session, broadly in line with its history of five declines in eight result reactions and a 2.56% median move.
Price around the results
Year-on-year profit pressure despite higher revenue
Coromandel's consolidated revenue grew 15.94% year on year, but expenses rose faster at 18.35%, leaving operating profit down 3.38%. Net profit declined 23.93% to Rs 381.56 cr, while EPS fell 24.61% to Rs 12.93. Interest expense rose 30.99% and depreciation increased 68.15%, adding pressure below the operating line.
Margin recovery masks a two-quarter decline
Operating margin widened 1.14 percentage points sequentially because revenue grew 36.00%, faster than expenses at 34.32%. That recovery followed declines from 11.88% in Q2FY26 to 9.11% in Q3FY26 and 8.12% in Q4FY26, but the margin was still 1.85 percentage points lower than a year earlier. Other income accounted for 9.70% of pre-tax profit, while the sequential tax-rate decline of 23.92 percentage points also supported the sharp rise in net profit.
Margin sits well below the commodities peer median
Coromandel's 9.26% operating margin was 10.01 percentage points below the 19.27% median for 67 commodities peers that had reported the quarter. It ranked sixth from the bottom on this measure, making the margin gap more significant than the sequential improvement alone suggests.
Initial market reaction was within the stock's usual range
The stock fell 0.80% on the results date and 2.87% in the next session, before showing a 0.73% gain five sessions later. Across the last eight result reactions, it declined five times and rose three times, with a 2.56% median absolute move, so the early decline was not unusual for the stock.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹8,165 cr | ₹6,004 cr | +36.00% | +15.94% |
| Other income | ₹50 cr | ₹-6 cr | — | -40.49% |
| Expenses | ₹7,409 cr | ₹5,516 cr | +34.32% | +18.35% |
| Operating profit | ₹756 cr | ₹488 cr | +54.92% | -3.38% |
| Operating margin (%) | 9.26% | 8.12% | — | — |
| Interest | ₹89 cr | ₹89 cr | -0.34% | +30.99% |
| Depreciation | ₹203 cr | ₹165 cr | +23.09% | +68.15% |
| Profit before tax | ₹514 cr | ₹228 cr | +125.64% | -24.16% |
| Tax | ₹132 cr | ₹113 cr | +16.91% | -24.80% |
| Net profit | ₹382 cr | ₹115 cr | +232.83% | -23.93% |
| EPS (₹) | ₹12.93 | ₹4.75 | +172.21% | -24.61% |
Operating margin of 9.26% compares with a Commodities sector median of 19.27% across 67 peers that have reported Q1FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -0.80% | -0.28% |
| Next session | -2.87% | — |
| 5 sessions | +0.73% | -0.61% |
Volume on the results session was 1.23× its 20-day average.
What to watch
- Whether operating margin holds above the current 9.26% after its 1.14-point sequential recovery.
- Whether expense growth moderates from 18.35% year on year against revenue growth of 15.94%.
- Whether depreciation remains elevated after reaching Rs 202.76 cr versus Rs 120.58 cr a year earlier.