Hindcon margin drops 7.35 points as expenses outpace revenue
Q2 consolidated net profit fell 47.44% QoQ, while other income made up 32.00% of pre-tax profit.
Filed 05 Nov 2026, 18:19 IST · after market close · Hindcon Chemicals Ltd (HINDCON)
Key takeaways
- Consolidated operating margin fell 7.35 percentage points sequentially to 7.01% as expenses grew 12.12% against revenue growth of 3.24%.
- Net profit declined 47.44% QoQ to Rs 1.23 cr, with other income contributing 32.00% of pre-tax profit.
- Operating margin was 5.84 percentage points below the 12.85% median for 126 reported commodities peers.
Price around the results
Expenses erased the Q1 margin gain
Hindcon Chemicals' consolidated revenue increased 3.24% QoQ to Rs 21.98 cr, but expenses rose 12.12% to Rs 20.44 cr. That mismatch cut operating profit 49.67% and narrowed operating margin by 7.35 percentage points to 7.01%. Net profit fell 47.44% to Rs 1.23 cr.
Other income made up a material share of profit
Other income accounted for 32.00% of pre-tax profit, making it a significant contributor to reported earnings. The tax rate rose 0.72 percentage points to 29.54%, while interest expense fell 72.73%; the lower interest cost did not offset the rise in operating expenses. At 7.01%, operating margin was 5.84 percentage points below the 12.85% median across 126 reported commodities peers.
Results were filed after market close
The consolidated results were filed after market close on 5 Nov 2026. The filing gives no same-day price response to assess.
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 | ₹22 cr | ₹21 cr | +3.24% |
| Other income | ₹1 cr | ₹1 cr | -9.68% |
| Expenses | ₹20 cr | ₹18 cr | +12.12% |
| Operating profit | ₹2 cr | ₹3 cr | -49.67% |
| Operating margin (%) | 7.01% | 14.36% | — |
| Interest | ₹0 cr | ₹0 cr | -72.73% |
| Depreciation | ₹0 cr | ₹0 cr | +14.29% |
| Profit before tax | ₹2 cr | ₹3 cr | -46.81% |
| Tax | ₹1 cr | ₹1 cr | -45.26% |
| Net profit | ₹1 cr | ₹2 cr | -47.44% |
| EPS (₹) | ₹0.37 | ₹0.63 | -41.27% |
Operating margin of 7.01% compares with a Commodities sector median of 12.85% across 126 peers that have reported Q2FY27.
What to watch
- Whether operating margin recovers from 7.01% after the 7.35-percentage-point QoQ decline.
- Whether expense growth moderates from 12.12% against the prior 3.24% revenue growth.
- Whether other income's share of pre-tax profit changes from 32.00%.