Manali Petrochemicals’ revenue surged, but costs cut operating margin
Expenses grew faster than revenue, while higher other income kept pre-tax profit broadly flat despite a 10.16-point margin decline.
Filed 06 Nov 2026, 14:07 IST · Manali Petrochemicals Ltd (MANALIPETC)
Key takeaways
- Consolidated revenue grew 43.99% QoQ, but expenses rose 64.93%, cutting operating margin by 10.16 percentage points.
- Operating profit fell 4.53% QoQ even as profit before tax rose 0.91%, with other income contributing 22.04% of pre-tax profit.
- Net profit declined 1.34% QoQ as the tax rate rose 1.7 percentage points to 25.56%.
Price around the results
Revenue growth did not translate into operating profit
In consolidated Q2FY27 results, revenue rose 43.99% QoQ to Rs 395.57 cr, but operating profit fell 4.53% to Rs 79.04 cr. The mismatch pushed operating margin down to 19.98% from 30.14% in Q1FY27, a decline of 10.16 percentage points.
Costs rose 64.93%, well ahead of revenue
Expenses increased 64.93% QoQ to Rs 316.53 cr, outpacing the 43.99% revenue growth and erasing operating leverage. Interest also rose 5.23%, while depreciation increased 3.79%, adding to the pressure below operating profit.
Other income supported pre-tax profit as tax rose
Profit before tax increased 0.91% QoQ even as operating profit declined, helped by other income rising 36.53% to Rs 18.8 cr. Other income accounted for 22.04% of pre-tax profit, making the quarter’s pre-tax performance less dependent on operations. The tax rate rose 1.7 percentage points to 25.56%, contributing to the 1.34% decline in net profit.
Margin remains above the reported commodities peer median
Manali Petrochemicals’ 19.98% operating margin was 7.13 percentage points above the 12.85% median for the 136 commodities peers that had reported the same quarter. Sequentially, however, margin moved down from 30.14%, marking a sharp deterioration from the preceding quarter.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹396 cr | ₹275 cr | +43.99% |
| Other income | ₹19 cr | ₹14 cr | +36.53% |
| Expenses | ₹317 cr | ₹192 cr | +64.93% |
| Operating profit | ₹79 cr | ₹83 cr | -4.53% |
| Operating margin (%) | 19.98% | 30.14% | — |
| Interest | ₹3 cr | ₹3 cr | +5.23% |
| Depreciation | ₹9 cr | ₹9 cr | +3.79% |
| Profit before tax | ₹85 cr | ₹85 cr | +0.91% |
| Tax | ₹22 cr | ₹20 cr | +8.08% |
| Net profit | ₹64 cr | ₹64 cr | -1.34% |
| EPS (₹) | ₹3.69 | ₹3.74 | -1.34% |
Operating margin of 19.98% compares with a Commodities sector median of 12.85% across 136 peers that have reported Q2FY27.
What to watch
- Whether operating margin recovers from 19.98% after the 10.16-percentage-point QoQ decline.
- Whether expense growth moderates from 64.93% and moves closer to revenue growth of 43.99%.
- Whether other income remains a material contributor after accounting for 22.04% of pre-tax profit.