Indo Borax margin collapses as costs rise despite weaker revenue
Operating margin fell to 2.52% sequentially, while other income exceeded pre-tax profit and interest costs surged.
Filed 06 Nov 2026, 17:46 IST · after market close · Indo Borax & Chemicals Ltd (INDOBORAX)
Key takeaways
- Consolidated operating margin fell 25.62 percentage points QoQ to 2.52% as revenue declined 16.23% while expenses rose 13.63%.
- Other income of Rs 7.89 cr represented 101.28% of pre-tax profit, making reported earnings dependent on non-operating income.
- The 2.52% operating margin was 10.31 percentage points below the 137-peer Commodities median for the quarter.
Price around the results
Revenue fell as expenses moved in the opposite direction
Indo Borax & Chemicals reported consolidated Q2FY27 revenue of Rs 58.94 cr, down 16.23% QoQ, while expenses increased 13.63%. That mismatch drove operating profit down 92.47% and reduced operating margin by 25.62 percentage points to 2.52%.
Other income carried pre-tax profit
Other income rose 208.20% QoQ to Rs 7.89 cr and accounted for 101.28% of pre-tax profit, pointing to weak earnings quality in the quarter. Interest expense increased 2160.00%, while the tax rate rose 12.94 percentage points to 39.06%, adding to the pressure on net profit and EPS.
Margin ranked near the bottom of reported commodities peers
The company's 2.52% operating margin was 10.31 percentage points below the median for 137 Commodities peers that had reported the same quarter. Indo Borax & Chemicals ranked 14th from the bottom on this measure, showing that the margin deterioration was material relative to its sector group.
Results were filed after market close
The company filed its consolidated results after market close on 6 November 2026. The stock response is therefore not covered in this update.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹59 cr | ₹70 cr | -16.23% |
| Other income | ₹8 cr | ₹3 cr | +208.20% |
| Expenses | ₹57 cr | ₹51 cr | +13.63% |
| Operating profit | ₹1 cr | ₹20 cr | -92.47% |
| Operating margin (%) | 2.52% | 28.14% | — |
| Interest | ₹1 cr | ₹0 cr | +2160.00% |
| Depreciation | ₹0 cr | ₹0 cr | +48.39% |
| Profit before tax | ₹8 cr | ₹22 cr | -64.59% |
| Tax | ₹3 cr | ₹6 cr | -47.13% |
| Net profit | ₹5 cr | ₹16 cr | -70.77% |
| EPS (₹) | ₹1.47 | ₹5.07 | -71.01% |
Operating margin of 2.52% compares with a Commodities sector median of 12.83% across 137 peers that have reported Q2FY27.
What to watch
- Whether operating margin recovers from 2.52% after the 25.62-percentage-point QoQ decline.
- Whether expenses reverse the 13.63% QoQ increase despite the 16.23% revenue decline.
- Whether other income's contribution falls from 101.28% of pre-tax profit.