Revenue drop and slower cost decline push De Nora India into Q2 loss
Standalone operating margin fell 31.59 percentage points sequentially, while the results were filed after market close.
Filed 03 Nov 2026, 18:51 IST · after market close · DE Nora India Ltd (DENORA)
Key takeaways
- Standalone operating margin swung from 16.14% in Q1FY27 to -15.45% in Q2FY27 as revenue fell 39.44% while expenses declined only 16.63%.
- De Nora India reported a standalone net loss of Rs 2.60 cr, with the 0.54 percentage-point lower tax rate unable to offset the operating loss.
- At -15.45%, the company's operating margin was 26.48 percentage points below the Industrials median, ranking it second from the bottom among 108 reported peers.
Price around the results
Q2 loss followed a sharp sequential revenue drop
De Nora India's standalone revenue fell 39.44% sequentially to Rs 21.36 cr, while net profit moved from Rs 6.39 cr in Q1FY27 to a loss of Rs 2.60 cr. EPS consequently fell from Rs 12.04 to negative Rs 4.90. The change reflects a reversal in operating performance rather than a financing burden, as interest remained at Rs 0.00 cr.
Costs did not adjust fast enough to the revenue decline
Expenses declined 16.63%, much slower than revenue, so operating margin contracted by 31.59 percentage points to -15.45%. Other income fell 89.28% to Rs 0.37 cr and represented -10.66% of pre-tax profit; with pre-tax profit at a loss, it did not offset the operating shortfall. The tax rate was 0.54 percentage points lower at 25.15%, but that change did not prevent a net loss.
Margin was far below the Industrials peer median
The company's -15.45% operating margin was 26.48 percentage points below the 11.03% median for 108 Industrials peers that had reported the quarter. It ranked second from the bottom on this measure. The result also marks a sharp reversal from Q1FY27, when operating margin was 16.14%.
No post-results market reaction yet
The company filed its standalone results after market close on 3 November 2026. The stock's response and its comparison with the usual post-results move cannot yet be assessed.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹21 cr | ₹35 cr | -39.44% |
| Other income | ₹0 cr | ₹3 cr | -89.28% |
| Expenses | ₹25 cr | ₹30 cr | -16.63% |
| Operating profit | ₹-3 cr | ₹6 cr | — |
| Operating margin (%) | -15.45% | 16.14% | — |
| Interest | ₹0 cr | ₹0 cr | — |
| Depreciation | ₹1 cr | ₹1 cr | +0.00% |
| Profit before tax | ₹-3 cr | ₹9 cr | — |
| Tax | ₹-1 cr | ₹2 cr | — |
| Net profit | ₹-3 cr | ₹6 cr | — |
| EPS (₹) | ₹-4.90 | ₹12.04 | — |
Operating margin of -15.45% compares with a Industrials sector median of 11.03% across 108 peers that have reported Q2FY27.
What to watch
- Whether revenue moves back above the Q1FY27 level of Rs 35.27 cr.
- Whether operating margin recovers from -15.45% toward the Q1FY27 level of 16.14%.
- Whether expenses continue to decline more slowly than revenue after sequential changes of -16.63% and -39.44%, respectively.