Revenue jumps 43.13%, but faster costs cut operating margin
Consolidated net profit rose 16.22% sequentially, helped by a negative tax rate, while operating margin trailed the sector median.
Filed 16 Oct 2026, 14:55 IST · Indo Rama Synthetics (India) Ltd (INDORAMA)
Key takeaways
- Consolidated revenue grew 43.13% sequentially, but operating profit rose only 10.02% as expenses increased faster.
- Operating margin fell 2.5 percentage points to 8.34%, below the 9.6% median for 17 reported Consumer Discretionary peers.
- Net profit rose 16.22% sequentially, with a -0.3% tax rate and other income contributing 4.6% of pre-tax profit.
Price around the results
Revenue growth did not translate proportionately into operating profit
Indo Rama Synthetics reported consolidated revenue growth of 43.13% from Q1FY27, while operating profit increased 10.02% and profit before tax rose 15.88%. Net profit grew 16.22% sequentially to Rs 74.08 cr, with EPS rising 16.39% to Rs 2.84.
Costs drove the 2.5-point margin decline
Expenses grew 47.16%, outpacing the 43.13% revenue increase and lowering operating margin by 2.5 percentage points to 8.34%. Interest fell 1.33%, but depreciation increased 2.41%, limiting the benefit from lower finance costs. The -0.3% tax rate also supported net profit, while other income contributed 4.6% of pre-tax profit.
Operating margin was below the peer midpoint
The company's 8.34% operating margin was 1.26 percentage points below the 9.6% median among 17 Consumer Discretionary peers that had reported the quarter. Indo Rama ranked seventh from the bottom on this measure, adding context to the sequential margin decline from 10.84% in Q1FY27.
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 | ₹1,341 cr | ₹937 cr | +43.13% |
| Other income | ₹3 cr | ₹4 cr | -4.49% |
| Expenses | ₹1,229 cr | ₹835 cr | +47.16% |
| Operating profit | ₹112 cr | ₹102 cr | +10.02% |
| Operating margin (%) | 8.34% | 10.84% | — |
| Interest | ₹29 cr | ₹29 cr | -1.33% |
| Depreciation | ₹12 cr | ₹12 cr | +2.41% |
| Profit before tax | ₹74 cr | ₹64 cr | +15.88% |
| Tax | ₹-0 cr | ₹0 cr | — |
| Net profit | ₹74 cr | ₹64 cr | +16.22% |
| EPS (₹) | ₹2.84 | ₹2.44 | +16.39% |
Operating margin of 8.34% compares with a Consumer Discretionary sector median of 9.60% across 17 peers that have reported Q2FY27.
What to watch
- Whether operating margin moves back above 8.34% after the 2.5-percentage-point sequential decline.
- Whether expense growth moderates from 47.16% relative to revenue growth of 43.13%.
- Whether the tax rate moves up from -0.3% and reduces the support it gave to net profit.