Q2 margin squeeze cuts HeidelbergCement India profit 45.11% QoQ
Revenue fell 9.61% QoQ while expenses fell 7.43%, leaving operating margin 2.16 percentage points lower at 8.48%.
Filed 29 Oct 2026, 14:35 IST · HeidelbergCement India Ltd (HEIDELBERG)
Key takeaways
- Standalone operating profit fell 27.90% QoQ as revenue declined 9.61% and expenses declined 7.43%, narrowing operating margin by 2.16 percentage points to 8.48%.
- Standalone net profit dropped 45.11% QoQ to Rs 16.77 cr, with other income contributing 29.50% of profit before tax.
- The stock fell 0.54% on the result day and underperformed the market by 1.58%.
Price around the results
Lower revenue drove a sharp profit decline
HeidelbergCement India reported standalone results, with revenue falling 9.61% QoQ and operating profit declining 27.90%. Since expenses fell less than revenue, operating margin narrowed to 8.48% from 10.64%. Profit before tax dropped 44.81%, while net profit fell 45.11% to Rs 16.77 cr.
Costs outpaced the sales decline
Expenses declined 7.43%, slower than the 9.61% fall in revenue, resulting in a 2.16 percentage-point margin contraction. Interest was broadly unchanged, down 0.32%, while depreciation rose 0.38%, so the main pressure came from operating costs relative to revenue. The tax rate increased by 0.40 percentage points to 25.83%, adding to the decline in net profit.
Other income made up a sizeable share of pre-tax profit
Other income rose 6.04% QoQ even as operating profit fell, and accounted for 29.50% of profit before tax. This means the quarter's pre-tax profit had a meaningful non-operating contribution. Operating margin also declined from 10.64% in Q1FY27 to 8.48% in Q2FY27, marking a sequential deterioration.
Margin lagged most reported Commodities peers
At 8.48%, HeidelbergCement India's operating margin was 6.15 percentage points below the 14.63% median for 41 reported Commodities peers. The company ranked 10th from the bottom on this measure. The stock fell 0.54% on the result day, with trading volume at 3.1 times the reference level, and underperformed the market by 1.58%.
Q2FY27 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹568 cr | ₹628 cr | -9.61% |
| Other income | ₹7 cr | ₹6 cr | +6.04% |
| Expenses | ₹520 cr | ₹561 cr | -7.43% |
| Operating profit | ₹48 cr | ₹67 cr | -27.90% |
| Operating margin (%) | 8.48% | 10.64% | — |
| Interest | ₹3 cr | ₹3 cr | -0.32% |
| Depreciation | ₹29 cr | ₹29 cr | +0.38% |
| Profit before tax | ₹23 cr | ₹41 cr | -44.81% |
| Tax | ₹6 cr | ₹10 cr | -43.95% |
| Net profit | ₹17 cr | ₹31 cr | -45.11% |
| EPS (₹) | ₹0.74 | ₹1.35 | -45.19% |
Operating margin of 8.48% compares with a Commodities sector median of 14.63% across 41 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -0.54% | -1.58% |
Volume on the results session was 3.10× its 20-day average.
What to watch
- Whether operating margin recovers from 8.48% after the 2.16 percentage-point QoQ decline.
- Whether expenses continue to decline faster than revenue, after falling 7.43% versus revenue's 9.61% decline.
- Whether other income's 29.50% share of profit before tax reduces in the next quarter.