Costs outpaced revenue as Kothari Petrochemicals’ margin slipped QoQ
Net profit rose +14.75% QoQ, helped by a lower tax rate and other income equal to 12.98% of pre-tax profit.
Filed 03 Nov 2026, 16:34 IST · after market close · Kothari Petrochemicals Ltd (KOTHARIPET)
Key takeaways
- Standalone revenue rose +12.88% QoQ, but expenses grew +13.20%, trimming operating margin by 0.25 percentage points.
- Standalone net profit increased +14.75% QoQ as the tax rate fell 1.68 percentage points, while other income contributed 12.98% of pre-tax profit.
- Operating margin at 14.67% was 0.49 percentage points above the median for 92 reported Commodities peers.
Price around the results
Revenue growth did not fully reach operating profit
Standalone revenue rose +12.88% QoQ to Rs 165.37 cr, while operating profit increased a slower +10.98% to Rs 24.25 cr. Net profit grew +14.75% to Rs 19.53 cr, outpacing operating profit because the tax rate fell to 22.50% from 24.18%.
Expense growth narrowed the operating margin
Expenses grew +13.20% QoQ, faster than revenue, so operating margin declined from 14.92% to 14.67%, a fall of 0.25 percentage points. Interest expense increased +33.33%, while other income rose +14.34% and accounted for 12.98% of pre-tax profit, making it a meaningful contributor to reported earnings.
Margin stayed above the reported Commodities peer median
Kothari Petrochemicals’ 14.67% operating margin was 0.49 percentage points above the 14.18% median among 92 Commodities peers that had reported the quarter. Sequentially, however, margin moved lower from 14.92% in Q1FY27; there is no year-on-year comparison in this update.
Results were filed after market close
The standalone results were filed after market close on 03 Nov 2026. The immediate market reaction is therefore not part of this update.
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 | ₹165 cr | ₹147 cr | +12.88% |
| Other income | ₹3 cr | ₹3 cr | +14.34% |
| Expenses | ₹141 cr | ₹125 cr | +13.20% |
| Operating profit | ₹24 cr | ₹22 cr | +10.98% |
| Operating margin (%) | 14.67% | 14.92% | — |
| Interest | ₹0 cr | ₹0 cr | +33.33% |
| Depreciation | ₹2 cr | ₹2 cr | +1.41% |
| Profit before tax | ₹25 cr | ₹22 cr | +12.20% |
| Tax | ₹6 cr | ₹5 cr | +4.42% |
| Net profit | ₹20 cr | ₹17 cr | +14.75% |
| EPS (₹) | ₹3.32 | ₹2.89 | +14.88% |
Operating margin of 14.67% compares with a Commodities sector median of 14.18% across 92 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 14.67% next quarter.
- Whether expense growth falls below the +13.20% QoQ pace recorded this quarter.
- Whether other income remains near its 12.98% share of pre-tax profit.