Operating recovery meets a large tax benefit in Q2FY27
Revenue rose 13.45% YoY and operating margin improved 9.04 percentage points, but sequential margin slipped as costs grew faster.
Filed 05 Nov 2026, 16:30 IST · after market close · Maithan Alloys Ltd (MAITHANALL)
Key takeaways
- Consolidated revenue grew 13.45% YoY while expenses rose 2.47%, lifting operating margin by 9.04 percentage points.
- Sequentially, operating margin fell 1.26 percentage points as expenses grew 4.76% against revenue growth of 3.21%, while interest expense rose 173.85%.
- Net profit of Rs 83.74 cr was supported by a -190.26% tax rate, while negative other income represented -138.02% of pre-tax profit.
Price around the results
YoY recovery, weaker sequential momentum
The consolidated business moved from a net loss of Rs 119.02 cr in Q2FY26 to a net profit of Rs 83.74 cr, as revenue grew 13.45% and operating profit rose 170.17% YoY. The sequential picture was softer: revenue increased 3.21%, but expenses grew 4.76%, reducing operating profit by 4.46%. Operating margin has now declined for two straight quarters, from 19.01% in Q4FY26 to 16.84% in Q1FY27 and 15.58% in Q2FY27.
Margin remains above the Commodities peer median
The 15.58% operating margin was 2.73 percentage points above the 12.85% median for the 126 Commodities peers that had reported the same quarter. YoY margin expansion came from revenue growing faster than expenses, while the sequential decline reflected the reverse cost relationship. Interest expense also rose 173.85% QoQ to Rs 12.46 cr, adding pressure below operating profit.
Profit quality is shaped by tax and non-operating items
The current quarter included negative other income of Rs 39.82 cr, equivalent to -138.02% of pre-tax profit, so reported earnings were not lifted by non-operating income. Instead, the Rs 54.89 cr tax credit exceeded pre-tax profit of Rs 28.85 cr and produced a -190.26% tax rate. This makes the net-profit comparison less representative of operating performance than the 9.04-percentage-point YoY improvement in operating margin.
No immediate market reaction after the filing
The consolidated results were filed after market close, so there is no market reaction to report yet. Across the last eight results, the stock rose four times and fell four times, with a median absolute move of 3.06%, indicating a mixed historical response rather than a consistent direction.
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 | YoY |
|---|---|---|---|---|
| Revenue | ₹557 cr | ₹540 cr | +3.21% | +13.45% |
| Other income | ₹-40 cr | ₹417 cr | — | +74.05% |
| Expenses | ₹470 cr | ₹449 cr | +4.76% | +2.47% |
| Operating profit | ₹87 cr | ₹91 cr | -4.46% | +170.17% |
| Operating margin (%) | 15.58% | 16.84% | — | — |
| Interest | ₹12 cr | ₹5 cr | +173.85% | -10.81% |
| Depreciation | ₹6 cr | ₹6 cr | +0.36% | -4.56% |
| Profit before tax | ₹29 cr | ₹498 cr | -94.20% | — |
| Tax | ₹-55 cr | ₹102 cr | — | -147.14% |
| Net profit | ₹84 cr | ₹396 cr | -78.84% | — |
| EPS (₹) | ₹27.85 | ₹135.01 | -79.37% | — |
Operating margin of 15.58% 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 | -2.34% | -4.36% |
Volume on the results session was 0.61× its 20-day average.
What to watch
- Whether operating margin recovers from 15.58% after two consecutive quarterly declines.
- Whether interest expense retreats from Rs 12.46 cr after its 173.85% QoQ increase.
- Whether the tax benefit and negative other income continue to distort reported profit, given the -190.26% tax rate and -138.02% other-income share of pre-tax profit.