Revenue surged 181.50% YoY, but operating margin fell 7.16 points
Expenses grew faster than sales, while lower other income and higher interest pulled sequential profit before tax down 11.92%.
Filed 13 Nov 2026, 20:59 IST · after market close · Fineotex Chemical Ltd (FCL)
Key takeaways
- Consolidated revenue grew 181.50% year on year, but expenses rose faster at 207.52%, pulling operating margin down 7.16 percentage points.
- Sequentially, operating profit edged up 0.76% while profit before tax fell 11.92% as other income declined 62.74% and interest rose 1580.00%.
- The 15.37% operating margin remained 2.98 percentage points above the 12.39% median for 156 reported Commodities-sector peers.
Price around the results
Sales growth came with weaker operating conversion
Consolidated revenue rose 181.50% year on year to Rs 387.65 cr, but expenses increased 207.52%. The faster cost growth cut operating margin to 15.37%, down 7.16 percentage points from Q2FY26. Sequentially, revenue grew 2.93%, while operating profit rose only 0.76% as expenses grew 3.33%.
Lower other income and higher interest reduced sequential profit
Profit before tax fell 11.92% sequentially despite slightly higher operating profit, because other income dropped 62.74% and interest rose 1580.00% from a low base. Other income accounted for 6.59% of profit before tax, so it was not the main earnings source, but its decline still affected the quarter. The tax rate fell 3.66 percentage points sequentially and 4.45 percentage points year on year, which partly supported net profit.
Margin recovered from Q4 but has slipped from the prior quarter
The 15.37% operating margin was 2.98 percentage points above the 12.39% median among 156 Commodities-sector peers that had reported. Its quarter-by-quarter path shows a recovery from 13.93% in Q4FY26 to 15.70% in Q1FY27, followed by a 0.33-percentage-point decline in Q2FY27. This makes the current movement a sequential setback after the prior quarter's improvement, rather than a third straight decline.
Results were filed after market close
The consolidated results were filed after market close, so there is no reported market reaction yet. In the last eight result reactions, the stock rose four times and fell four times, with a median absolute move of 4.40%, indicating that post-result moves have typically been material but mixed.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹388 cr | ₹377 cr | +2.93% | +181.50% |
| Other income | ₹4 cr | ₹10 cr | -62.74% | -51.30% |
| Expenses | ₹328 cr | ₹317 cr | +3.33% | +207.52% |
| Operating profit | ₹60 cr | ₹59 cr | +0.76% | +92.04% |
| Operating margin (%) | 15.37% | 15.70% | — | — |
| Interest | ₹2 cr | ₹0 cr | +1580.00% | +394.12% |
| Depreciation | ₹5 cr | ₹4 cr | +5.92% | +54.49% |
| Profit before tax | ₹57 cr | ₹65 cr | -11.92% | +61.12% |
| Tax | ₹12 cr | ₹17 cr | -24.55% | +33.91% |
| Net profit | ₹45 cr | ₹48 cr | -7.59% | +70.82% |
| EPS (₹) | ₹0.38 | ₹0.41 | -7.32% | -83.26% |
Operating margin of 15.37% compares with a Commodities sector median of 12.39% across 156 peers that have reported Q2FY27.
What to watch
- Whether operating margin recovers from 15.37% after the 0.33-percentage-point sequential decline.
- Whether expenses grow slower than revenue after rising 207.52% year on year.
- Whether interest remains above the Rs 1.68 cr reported this quarter and continues to affect profit before tax.