Coromandel Q4 profit plunges 76.53% as margin pressure deepens
Consolidated operating margin fell for a second straight quarter, while a 49.64% tax rate added to the sequential profit decline.
Filed 07 May 2026, 14:05 IST · Coromandel International Ltd (COROMANDEL)
Key takeaways
- Coromandel International’s consolidated net profit fell 76.53% sequentially to Rs 114.64 cr as operating profit declined 39.00%.
- Operating margin narrowed 0.99 percentage points to 8.12% because expenses fell 30.88%, less than the 31.62% drop in revenue.
- The stock fell 7.82% five sessions after the results, versus a 2.28% median absolute move after its previous eight results.
Price around the results
Q4 profit drop outpaced the revenue decline
Coromandel’s consolidated revenue fell 31.62% sequentially to Rs 6,003.66 cr, while operating profit dropped 39.00% to Rs 487.78 cr. Profit before tax declined 65.13% to Rs 227.65 cr, and net profit fell 76.53% to Rs 114.64 cr. The sharper profit contraction reflects weaker operating leverage below revenue.
Costs, depreciation and tax weighed on earnings
Expenses declined 30.88%, slower than revenue, narrowing operating margin by 0.99 percentage points to 8.12%. Interest rose 6.94% and depreciation increased 12.41%, adding pressure below operating profit. The tax rate rose 24.47 percentage points to 49.64%, while other income was negative and equal to -2.67% of pre-tax profit, so neither tax nor other income flattered reported net profit.
Margin has fallen from the Q2FY26 peak
Operating margin has declined from 11.88% in Q2FY26 to 9.11% in Q3FY26 and 8.12% in Q4FY26, marking a second consecutive quarterly contraction. Coromandel’s margin was 10.65 percentage points below the 18.77% median for the 51 Commodities peers that had reported the same quarter, placing it third from the bottom.
Market reaction was weaker than Coromandel’s usual post-result move
The stock fell 2.63% on the results day and 7.82% five sessions later, with trading volume at 2.2 times the normal level on day zero. The five-session decline was materially larger than the 2.28% median absolute move across the company’s previous eight results, after which the stock rose three times and fell five times.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹6,004 cr | ₹8,779 cr | -31.62% |
| Other income | ₹-6 cr | ₹83 cr | — |
| Expenses | ₹5,516 cr | ₹7,980 cr | -30.88% |
| Operating profit | ₹488 cr | ₹800 cr | -39.00% |
| Operating margin (%) | 8.12% | 9.11% | — |
| Interest | ₹89 cr | ₹84 cr | +6.94% |
| Depreciation | ₹165 cr | ₹147 cr | +12.41% |
| Profit before tax | ₹228 cr | ₹653 cr | -65.13% |
| Tax | ₹113 cr | ₹164 cr | -31.21% |
| Net profit | ₹115 cr | ₹488 cr | -76.53% |
| EPS (₹) | ₹4.75 | ₹17.17 | -72.34% |
Operating margin of 8.12% compares with a Commodities sector median of 18.77% across 51 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -2.63% | -2.61% |
| Next session | -4.48% | — |
| 5 sessions | -7.82% | -5.18% |
| 15 sessions | -13.11% | — |
| 30 sessions | -0.14% | — |
Volume on the results session was 2.20× its 20-day average.
What to watch
- Whether operating margin holds above 8.12% after the second consecutive quarterly decline.
- Whether the tax rate moves back from 49.64% toward the 25.17% recorded in Q3FY26.
- Whether expenses decline faster than revenue after falling 30.88% versus a 31.62% revenue decline in Q4FY26.