Galaxy Surfactants' margin drops 3.52 points as costs outpace revenue
Revenue rose 1.60% QoQ, but expenses grew 5.75%; the consolidated results were filed after market close.
Filed 04 Nov 2026, 21:03 IST · after market close · Galaxy Surfactants Ltd (GALAXYSURF)
Key takeaways
- Consolidated operating margin fell 3.52 percentage points QoQ to 10.47% as expenses grew 5.75% against 1.60% revenue growth.
- Consolidated net profit declined 27.83% QoQ to Rs 119.75 cr, while the tax rate rose 0.88 percentage points to 20.81%.
- Galaxy Surfactants' 10.47% operating margin was 2.80 percentage points below the 13.27% median for 111 reported Commodities peers.
Price around the results
Costs erased operating leverage in Q2FY27
Consolidated revenue increased 1.60% QoQ, but expenses rose 5.75%, reducing operating profit by 23.95% and narrowing the operating margin by 3.52 percentage points. Interest expense also increased 7.22%, adding to the pressure below operating profit. Other income rose 93.90% QoQ but contributed 4.21% of pre-tax profit, so earnings were not materially dependent on it.
Profit fell faster than revenue
The cost increase left consolidated net profit down 27.83% QoQ, while EPS declined 27.82% to Rs 33.78. The tax rate increased 0.88 percentage points to 20.81%, which provided no tax-rate benefit to offset the weaker operating result. The available sequential direction was therefore a clear margin and profit contraction from Q1FY27.
Margin trails the reported peer median
Galaxy Surfactants' 10.47% operating margin was 2.80 percentage points below the 13.27% median among 111 reported Commodities peers. This places the quarter below the sector comparison on operating profitability, alongside the sequential decline from 13.99% in Q1FY27.
Results came after the market closed
The company filed its consolidated Q2FY27 results at 21:03 IST on 4 November 2026, after market close. The report therefore does not yet include a post-results market reaction to assess against the stock's past response.
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 |
|---|---|---|---|
| Revenue | ₹1,810 cr | ₹1,782 cr | +1.60% |
| Other income | ₹6 cr | ₹3 cr | +93.90% |
| Expenses | ₹1,621 cr | ₹1,533 cr | +5.75% |
| Operating profit | ₹190 cr | ₹249 cr | -23.95% |
| Operating margin (%) | 10.47% | 13.99% | — |
| Interest | ₹10 cr | ₹9 cr | +7.22% |
| Depreciation | ₹35 cr | ₹36 cr | -3.48% |
| Profit before tax | ₹151 cr | ₹207 cr | -27.03% |
| Tax | ₹31 cr | ₹41 cr | -23.84% |
| Net profit | ₹120 cr | ₹166 cr | -27.83% |
| EPS (₹) | ₹33.78 | ₹46.80 | -27.82% |
Operating margin of 10.47% compares with a Commodities sector median of 13.27% across 111 peers that have reported Q2FY27.
What to watch
- Whether operating margin recovers from 10.47% after the 3.52-percentage-point QoQ decline.
- Whether expense growth moderates from 5.75% relative to revenue growth of 1.60%.
- Whether the tax rate remains close to 20.81% and interest growth moderates from 7.22%.