DIC India margin slumps as costs rise despite weaker revenue
Standalone operating margin fell 5.54 percentage points sequentially, while other income supplied 51.58% of pre-tax profit.
Filed 03 Nov 2026, 18:47 IST · after market close · DIC India Ltd (DICIND)
Key takeaways
- Standalone operating profit fell 71.17% sequentially as expenses rose 2.31% while revenue declined 3.50%.
- Operating margin narrowed 5.54 percentage points to 2.36%, leaving DIC India 11.82 percentage points below the 14.18% median for 92 reporting commodity peers.
- Other income contributed 51.58% of pre-tax profit, while a 4.72-percentage-point rise in the tax rate added to the sequential earnings decline.
Price around the results
Costs turned a modest revenue decline into a sharp profit drop
DIC India’s standalone revenue declined 3.50% sequentially, but expenses increased 2.31%, so operating profit fell 71.17%. The mismatch pushed operating margin down 5.54 percentage points to 2.36%. Pre-tax profit and net profit consequently fell 85.13% and 86.05%, respectively.
Other income cushioned a weak operating quarter
Other income accounted for 51.58% of pre-tax profit, making reported earnings less representative of operating performance. Interest expense rose 29.73% sequentially, while the tax rate increased 4.72 percentage points to 30.30%. These factors compounded the pressure from the operating decline.
Margin was well below the commodity-sector comparison
Among 92 commodity-sector peers that had reported, DIC India’s 2.36% operating margin was 11.82 percentage points below the 14.18% median. The company ranked eighth from the bottom on this measure, placing the quarter near the weaker end of the reported peer range.
Results were filed after market close
The standalone results were filed at 18:47 IST on 3 November 2026, after the market closed. No post-results market reaction is available in this report.
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 | ₹274 cr | ₹284 cr | -3.50% |
| Other income | ₹1 cr | ₹2 cr | -11.45% |
| Expenses | ₹268 cr | ₹262 cr | +2.31% |
| Operating profit | ₹6 cr | ₹22 cr | -71.17% |
| Operating margin (%) | 2.36% | 7.90% | — |
| Interest | ₹0 cr | ₹0 cr | +29.73% |
| Depreciation | ₹5 cr | ₹5 cr | +0.88% |
| Profit before tax | ₹3 cr | ₹19 cr | -85.13% |
| Tax | ₹1 cr | ₹5 cr | -82.45% |
| Net profit | ₹2 cr | ₹14 cr | -86.05% |
| EPS (₹) | ₹2.17 | ₹15.54 | -86.04% |
Operating margin of 2.36% compares with a Commodities sector median of 14.18% across 92 peers that have reported Q2FY27.
What to watch
- Whether standalone operating margin recovers from 2.36% next quarter.
- Whether expenses stop growing faster than revenue after a 2.31% expense increase against a 3.50% revenue decline.
- Whether other income remains a major contributor after accounting for 51.58% of pre-tax profit.