Jai Balaji margin slips as costs fall slower than revenue
Standalone net profit fell 9.40% sequentially, with higher interest and other income providing important context to the decline.
Filed 05 Nov 2026, 15:19 IST · Jai Balaji Industries Ltd (JAIBALAJI)
Key takeaways
- Standalone operating margin fell 0.99 percentage points sequentially to 8.01% as revenue declined faster than expenses.
- Standalone net profit declined 9.40% sequentially to Rs 77.22 cr, while other income contributed 14.04% of pre-tax profit.
- Jai Balaji's 8.01% operating margin was 4.84 percentage points below the 12.85% median for 126 reported Commodities peers.
Price around the results
Revenue softness reduced operating profit
Standalone revenue declined 1.81% sequentially to Rs 1,652.12 cr, while operating profit fell 12.60% to Rs 132.29 cr. The sharper operating-profit decline points to weaker operating leverage in the quarter. Net profit fell 9.40% to Rs 77.22 cr.
Expenses and interest squeezed margins
Expenses declined 0.74%, less than the 1.81% fall in revenue, so operating margin narrowed by 0.99 percentage points to 8.01%. Interest expense increased 6.13%, adding pressure below operating profit, while the tax rate rose 0.41 percentage points to 22.42%. Other income rose 314.84% sequentially and accounted for 14.04% of pre-tax profit, making it a material contributor to reported earnings.
Margin trails the Commodities peer median
Jai Balaji's 8.01% operating margin was 4.84 percentage points below the 12.85% median among 126 Commodities companies that had reported. The company ranked 36th from the bottom on this measure. Sequentially, this was a decline from the 9.00% margin in Q1FY27; the available trend shows one prior quarter rather than a longer multi-quarter direction.
No post-results market reaction yet
The results were filed on 5 November 2026 at 15:19 IST, and no post-results stock reaction is available yet. That leaves the sequential margin decline, the 14.04% contribution of other income to pre-tax profit and the peer-margin gap as the main reported signals from this standalone quarter.
Q2FY27 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹1,652 cr | ₹1,683 cr | -1.81% |
| Other income | ₹14 cr | ₹3 cr | +314.84% |
| Expenses | ₹1,520 cr | ₹1,531 cr | -0.74% |
| Operating profit | ₹132 cr | ₹151 cr | -12.60% |
| Operating margin (%) | 8.01% | 9.00% | — |
| Interest | ₹15 cr | ₹14 cr | +6.13% |
| Depreciation | ₹32 cr | ₹32 cr | +1.36% |
| Profit before tax | ₹100 cr | ₹109 cr | -8.91% |
| Tax | ₹22 cr | ₹24 cr | -7.19% |
| Net profit | ₹77 cr | ₹85 cr | -9.40% |
| EPS (₹) | ₹0.85 | ₹0.93 | -8.60% |
Operating margin of 8.01% compares with a Commodities sector median of 12.85% across 126 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +0.81% | -1.20% |
Volume on the results session was 1.29× its 20-day average.
What to watch
- Whether operating margin moves back above or remains near 8.01%.
- Whether interest expense growth moderates from +6.13% sequentially.
- Whether other income remains a material share of pre-tax profit versus 14.04%.