Revenue nearly doubled, but operating margin fell again
Expenses grew faster than revenue, while other income made up 11.7% of pre-tax profit.
Filed 05 Nov 2026, 14:10 IST · KRONOX (KRONOX)
Key takeaways
- Standalone revenue rose 94.51% QoQ to Rs 55.22 cr, but expenses grew slightly faster at 94.84%.
- Operating margin slipped 0.12 percentage points to 31.58%, extending the decline from 36.44% in Q4FY26.
- Other income contributed 11.7% of pre-tax profit, while the tax rate rose 0.33 percentage points to 25.89%.
Scale-up lifted profit, but not at the same pace
KRONOX reported standalone Q2FY27 revenue growth of 94.51% QoQ, taking sales to Rs 55.22 cr. Operating profit rose 93.78%, slightly slower than revenue, so the expansion did not translate into margin improvement. Net profit grew 88.22%, also trailing operating profit growth.
Costs edged ahead of revenue growth
Expenses grew 94.84% QoQ against 94.51% revenue growth, narrowing operating margin by 0.12 percentage points. Interest increased 266.67% to Rs 0.11 cr, although it remained a small charge. Other income accounted for 11.7% of pre-tax profit, making it a meaningful part of reported earnings, while the 0.33-percentage-point rise in the tax rate did not flatter net profit.
Operating margin has declined for two straight quarters
Operating margin fell from 36.44% in Q4FY26 to 31.70% in Q1FY27 and 31.58% in Q2FY27. This is a second consecutive quarterly decline, even as revenue increased 94.51% sequentially in the latest quarter. The key comparison for the next result is whether the higher scale can stop the margin slide.
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 | ₹55 cr | ₹28 cr | +94.51% |
| Other income | ₹2 cr | ₹1 cr | +66.92% |
| Expenses | ₹38 cr | ₹19 cr | +94.84% |
| Operating profit | ₹17 cr | ₹9 cr | +93.78% |
| Operating margin (%) | 31.58% | 31.70% | — |
| Interest | ₹0 cr | ₹0 cr | +266.67% |
| Depreciation | ₹1 cr | ₹0 cr | +111.11% |
| Profit before tax | ₹19 cr | ₹10 cr | +88.99% |
| Tax | ₹5 cr | ₹3 cr | +91.24% |
| Net profit | ₹14 cr | ₹7 cr | +88.22% |
| EPS (₹) | ₹3.70 | ₹2.00 | +85.00% |
What to watch
- Whether operating margin recovers from 31.58% after two consecutive quarterly declines.
- Whether expenses continue to grow faster than revenue after rising 94.84% versus revenue growth of 94.51%.
- Whether other income remains near 11.7% of pre-tax profit.