Interest and depreciation sharply limited Mangalam Cement's profit conversion
Other income was close to pre-tax profit, while the 9.36% operating margin remained 4.82 percentage points below the sector median.
Filed 03 Nov 2026, 15:25 IST · Mangalam Cement Ltd (MANGLMCEM)
Key takeaways
- Standalone operating profit of Rs 40.55 cr was largely absorbed by interest of Rs 17.61 cr and depreciation of Rs 22.33 cr, leaving profit before tax at Rs 10.10 cr.
- Other income of Rs 9.49 cr was close to standalone profit before tax of Rs 10.10 cr, pointing to low-quality reported earnings.
- Operating margin at 9.36% trailed the 14.18% median for 92 reported Commodities peers by 4.82 percentage points.
Price around the results
Operating profit was largely absorbed below the line
That left only Rs 10.10 cr of profit before tax and Rs 7.41 cr of net profit. The result shows limited conversion of operating profit into earnings after financing and asset-related charges.
Other income did much of the work in pre-tax profit
Other income of Rs 9.49 cr was close to the Rs 10.10 cr standalone profit before tax. This makes the quarter's reported profit heavily reliant on non-operating income rather than operating earnings. Tax of Rs 2.69 cr brought net profit to Rs 7.41 cr at a 26.65% tax rate.
Margin lagged the Commodities peer set
The company's 9.36% operating margin was 4.82 percentage points below the 14.18% median among 92 Commodities peers that had reported the quarter. Mangalam Cement ranked 26th from the bottom in that comparison. No sequential, year-on-year or multi-quarter trend is available for this quarter.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 |
|---|---|
| Revenue | ₹433 cr |
| Other income | ₹9 cr |
| Expenses | ₹393 cr |
| Operating profit | ₹41 cr |
| Operating margin (%) | 9.36% |
| Interest | ₹18 cr |
| Depreciation | ₹22 cr |
| Profit before tax | ₹10 cr |
| Tax | ₹3 cr |
| Net profit | ₹7 cr |
| EPS (₹) | ₹2.70 |
Operating margin of 9.36% compares with a Commodities sector median of 14.18% across 92 peers that have reported Q2FY27.
What to watch
- Whether operating margin moves above 9.36% in the next reported quarter.
- Whether interest remains below Rs 17.61 cr as operating profit changes.
- Whether other income remains close to the Rs 9.49 cr reported this quarter.