Ishan Dyes margin jumps 43.44 points despite 50.89% revenue drop
Expenses fell faster than revenue, while a lower tax rate amplified the standalone profit increase.
Filed 26 Oct 2026, 20:05 IST · after market close · Ishan Dyes and chemicals Ltd (ISHANCH)
Key takeaways
- Standalone operating margin widened 43.44 percentage points sequentially to 51.54% even as revenue fell -50.89%.
- Standalone net profit rose to Rs 6.22 cr from Rs 0.15 cr sequentially, helped by a 10.37 percentage-point fall in the tax rate.
- The company’s 51.54% operating margin was 36.91 percentage points above the 14.63% median for 25 reported commodities peers.
Price around the results
Revenue fell, but operating profit rose sharply
Standalone revenue declined -50.89% sequentially to Rs 20.37 cr, while operating profit rose 212.50% to Rs 10.50 cr. The result was a 43.44 percentage-point expansion in operating margin to 51.54%, reversing the 8.10% margin recorded in Q1FY27.
Lower costs drove the margin reversal
Expenses fell -74.11%, faster than the -50.89% decline in revenue, which explains the sharp margin improvement. Interest declined -2.40% and depreciation increased 0.49%, so neither materially changed the operating improvement. Other income contributed 7.99% of pre-tax profit, while the tax rate fell 10.37 percentage points to 4.56%, giving net profit an additional lift.
Margin was well above the commodities peer median
Ishan Dyes and Chemicals’ standalone operating margin of 51.54% was 36.91 percentage points above the 14.63% median among 25 commodities peers that had reported. Sequential profit before tax rose from Rs 0.18 cr to Rs 6.51 cr, while EPS increased from Rs 0.06 to Rs 2.28. With only Q1FY27 in the supplied trend, the quarter shows a sharp sequential rebound rather than an established multi-quarter direction.
Initial market response was positive
The stock rose 3.27% in the initial response on 27 October, after the results were filed after market close on 26 October. The opening gap was 9.43%, and traded volume was 6.11 times the reference level.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹20 cr | ₹41 cr | -50.89% |
| Other income | ₹1 cr | ₹1 cr | -61.76% |
| Expenses | ₹10 cr | ₹38 cr | -74.11% |
| Operating profit | ₹11 cr | ₹3 cr | +212.50% |
| Operating margin (%) | 51.54% | 8.10% | — |
| Interest | ₹2 cr | ₹3 cr | -2.40% |
| Depreciation | ₹2 cr | ₹2 cr | +0.49% |
| Profit before tax | ₹7 cr | ₹0 cr | +3516.67% |
| Tax | ₹0 cr | ₹0 cr | +900.00% |
| Net profit | ₹6 cr | ₹0 cr | +4046.67% |
| EPS (₹) | ₹2.28 | ₹0.06 | +3700.00% |
Operating margin of 51.54% compares with a Commodities sector median of 14.63% across 25 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +3.27% | +3.29% |
Volume on the results session was 6.11× its 20-day average.
What to watch
- Whether standalone operating margin holds above 51.54% after the Q1FY27 level of 8.10%.
- Whether revenue recovers from Rs 20.37 cr without expenses again rising faster than revenue.
- Whether the tax rate remains near 4.56% and continues to support net profit conversion.