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 despite revenue growth of 15.94%.
- Operating margin recovered 17.79 percentage points sequentially to 25.96%, but remained 7.17 percentage points below Q1FY26.
- The stock fell 2.76% in the next session, close to its 2.63% median absolute move after the last eight results.
Price around the results
Revenue growth did not translate into profit growth
Coromandel's consolidated revenue grew 15.94% year on year, but expenses rose 28.37%, so operating profit declined 9.16%. That operating pressure, along with 30.99% higher interest and 68.15% higher depreciation, reduced profit before tax by 24.16%. Other income contributed 9.7% of pre-tax profit, making it a meaningful but not dominant part of earnings.
Sequential margin recovery came from operating leverage
Revenue increased 36.00% sequentially while expenses grew 9.64%, allowing operating margin to expand 17.79 percentage points. The lower tax rate also supported the sequential profit rebound, falling 23.92 percentage points to 25.72%; by contrast, the year-on-year tax-rate change was only 0.22 percentage points. This makes the sequential improvement primarily operational, with an additional benefit from tax.
Margin is off its Q2 peak but above the sector median
Operating margin has recovered from 8.17% in Q4FY26, but remains below 29.68% in Q3FY26 and 33.13% in Q1FY26, so the year-on-year deterioration remains significant. Coromandel's 25.96% margin was 12.40 percentage points above the 13.56% median among 12 Commodities peers that had reported the quarter.
Market reaction was negative but within the stock's usual range
The stock fell 0.80% on the result date and was down 2.76% in the next session. That was close to the 2.63% median absolute move across the last eight results, during which the stock rose after three results and fell after five.
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 | ₹65 cr | -22.78% | -40.52% |
| Expenses | ₹6,045 cr | ₹5,513 cr | +9.64% | +28.37% |
| Operating profit | ₹2,120 cr | ₹490 cr | +332.43% | -9.16% |
| Operating margin (%) | 25.96% | 8.17% | — | — |
| 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 | +125.62% | -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 25.96% compares with a Commodities sector median of 13.56% across 12 peers that have reported Q1FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -0.80% | -0.28% |
| Next session | -2.76% | — |
Volume on the results session was 1.23× its 20-day average.
What to watch
- Whether operating margin holds above 25.96% after the sequential recovery.
- Whether expenses continue to grow more slowly than revenue, as they did at 9.64% versus 36.00% sequentially.
- Whether the tax rate remains near 25.72% rather than the 49.64% recorded in Q4FY26.