Diamines & Chemicals swings to Q2 operating loss as costs outrun revenue
Revenue rose +68.48% QoQ, but expenses grew +82.67%, cutting operating margin to -4.95% from 3.16%.
Filed 28 Oct 2026, 13:24 IST · Diamines & Chemicals Ltd (DIAMINESQ)
Key takeaways
- Standalone operating profit fell to a loss of Rs 1.20 cr as operating margin declined 8.11 percentage points QoQ to -4.95%.
- Revenue grew +68.48% QoQ, but expenses rose faster at +82.67%, resulting in a Rs 1.42 cr loss before tax.
- Operating margin was 19.53 percentage points below the 14.58% median for 32 reported Commodities peers, ranking third from bottom.
Price around the results
Revenue growth did not prevent a standalone loss
Revenue increased to Rs 24.21 cr from Rs 14.37 cr in Q1FY27, but the company moved from a Rs 0.27 cr profit before tax to a Rs 1.42 cr loss. Other income of Rs 1.52 cr was not enough to offset the operating loss, depreciation and other charges. With the tax rate unchanged at 0%, the loss before tax flowed through to net profit.
Costs and depreciation drove the margin reversal
Expenses grew +82.67% QoQ, faster than the +68.48% increase in revenue, which reduced operating margin by 8.11 percentage points to -4.95%. Depreciation more than doubled, rising +104.76%, while interest increased +50.00% from a low base. Other income represented -107.04% of profit before tax because profit before tax was negative, so it was a non-operating offset rather than evidence of operating profitability.
Margin ranked near the bottom of reported peers
The quarter reversed the Q1FY27 operating margin of 3.16%; the available trend shows a sequential deterioration rather than a sustained improvement. Diamines & Chemicals' -4.95% margin was 19.53 percentage points below the 14.58% median for 32 Commodities peers that had reported the same quarter. It ranked third from the bottom on this measure.
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 | ₹24 cr | ₹14 cr | +68.48% |
| Other income | ₹2 cr | ₹1 cr | +123.53% |
| Expenses | ₹25 cr | ₹14 cr | +82.67% |
| Operating profit | ₹-1 cr | ₹0 cr | — |
| Operating margin (%) | -4.95% | 3.16% | — |
| Interest | ₹0 cr | ₹0 cr | +50.00% |
| Depreciation | ₹2 cr | ₹1 cr | +104.76% |
| Profit before tax | ₹-1 cr | ₹0 cr | — |
| Tax | ₹0 cr | ₹0 cr | — |
| Net profit | ₹-1 cr | ₹0 cr | — |
| EPS (₹) | ₹1.42 | ₹0.27 | +425.93% |
Operating margin of -4.95% compares with a Commodities sector median of 14.58% across 32 peers that have reported Q2FY27.
What to watch
- Whether operating margin recovers from -4.95% toward the Q1FY27 level of 3.16%.
- Whether expense growth moderates from +82.67% QoQ relative to revenue growth of +68.48%.
- Whether the margin gap to the 14.58% Commodities peer median narrows.