Commodities · Q2FY27 · Consolidated

IMFA profit drops 23.28% QoQ as costs outpace revenue

Consolidated operating margin fell 5.03 percentage points to 24.26%, though it remained 10.99 points above the sector median.

By Ashutosh

Filed 04 Nov 2026, 14:13 IST · Indian Metals & Ferro Alloys Ltd (IMFA)

Key takeaways

  • Consolidated net profit declined by 23.28% QoQ to Rs 147.76 cr as expenses rose +7.97% while revenue grew only +0.80%.
  • Operating margin narrowed by 5.03 percentage points QoQ to 24.26% because costs grew faster than revenue.
  • IMFA's 24.26% operating margin was 10.99 percentage points above the 13.27% median for 111 reported commodity peers.

Price around the results

Near-flat revenue could not absorb the cost increase

In Q2FY27, consolidated revenue grew only +0.80% QoQ, while expenses increased +7.97%. That gap reduced operating profit by 16.50% and pulled net profit down by 23.28% to Rs 147.76 cr.

Higher costs and financing charges squeezed operating profit

The faster expense growth narrowed operating margin by 5.03 percentage points to 24.26%. Interest expense rose +15.25% QoQ, while the tax rate increased by 0.29 percentage points to 25.73%, adding to the pressure below operating profit. Other income fell by 57.94% and contributed only 2.73% of pre-tax profit, so the earnings decline was primarily operational rather than caused by a large change in non-operating income.

Margin remained above the commodity-sector median

IMFA's 24.26% operating margin was 10.99 percentage points above the 13.27% median among 111 commodity peers that had reported. Compared with Q1FY27, however, the margin moved down from 29.29%, marking a sharp sequential step-down even as revenue was broadly stable.

Q2FY27 at a glance

Consolidated figures as filed with NSE — cross-checked against an independent source.

Line itemQ2FY27Q1FY27QoQ
Revenue₹968 cr₹960 cr+0.80%
Other income₹5 cr₹13 cr-57.94%
Expenses₹733 cr₹679 cr+7.97%
Operating profit₹235 cr₹281 cr-16.50%
Operating margin (%)24.26%29.29%—
Interest₹14 cr₹12 cr+15.25%
Depreciation₹27 cr₹23 cr+15.25%
Profit before tax₹199 cr₹258 cr-22.98%
Tax₹51 cr₹66 cr-22.09%
Net profit₹148 cr₹193 cr-23.28%
EPS (₹)₹27.37₹35.65-23.23%

Operating margin of 24.26% compares with a Commodities sector median of 13.27% across 111 peers that have reported Q2FY27.

What to watch

  • Whether expense growth moderates from +7.97% QoQ against revenue growth of +0.80%.
  • Whether operating margin recovers from 24.26% after the 5.03 percentage-point sequential decline.
  • Whether interest expense remains close to Rs 14.36 cr after its +15.25% QoQ increase.