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.
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 item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| 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.