National Aluminium’s operating margin falls 6.58 points QoQ
Expenses grew much faster than revenue, pulling net profit down 8.39% sequentially despite 26.26% year-on-year revenue growth.
Filed 02 Nov 2026, 21:32 IST · after market close · National Aluminium Company Ltd (NATIONALUM)
Key takeaways
- Consolidated operating margin fell 6.58 percentage points QoQ to 44.48% as expenses grew +15.95% against revenue growth of +2.21%.
- Year-on-year revenue rose +26.26%, but expenses rose +27.15%, leaving operating margin 0.39 percentage points lower.
- Other income contributed 10.04% of pre-tax profit, while National Aluminium’s operating margin remained 29.85 percentage points above the 14.63% median for 75 reported commodity peers.
Price around the results
Sequential margin reset despite higher revenue
National Aluminium’s consolidated revenue grew +2.21% QoQ, but expenses rose +15.95%, reducing operating profit by 10.97%. That cost-revenue mismatch cut operating margin by 6.58 percentage points to 44.48% and net profit by 8.39%. The decline follows a rise in operating margin from 39.20% in Q1FY26 to 51.06% in Q1FY27.
Year-on-year growth came with cost pressure
The year-on-year picture is stronger on growth but less favourable on costs: revenue increased +26.26% while expenses increased +27.15%, leaving operating profit growth at +25.17% and margin 0.39 percentage points lower. The tax rate rose 1.33 percentage points and interest expense increased +14.35%, so the 28.33% rise in net profit was not helped by a lower tax burden. Other income accounted for 10.04% of pre-tax profit, making it a material contributor to reported earnings.
Margin remains well above the commodity peer median
National Aluminium’s 44.48% operating margin was 29.85 percentage points above the 14.63% median among 75 commodity peers that had reported the quarter. This keeps the company near the top of the sector comparison even after the sharp sequential contraction.
Market response awaits post-close filing
The consolidated results were filed after market close on 2 November 2026, so the market response is not yet covered here. Across the last eight result reactions, the stock rose five times and fell three times, with a median absolute move of 5.41%, indicating a mixed but usually sizeable response.
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 | ₹5,419 cr | ₹5,302 cr | +2.21% | +26.26% |
| Other income | ₹248 cr | ₹174 cr | +42.50% | +67.32% |
| Expenses | ₹3,009 cr | ₹2,595 cr | +15.95% | +27.15% |
| Operating profit | ₹2,411 cr | ₹2,708 cr | -10.97% | +25.17% |
| Operating margin (%) | 44.48% | 51.06% | — | — |
| Interest | ₹10 cr | ₹10 cr | +0.10% | +14.35% |
| Depreciation | ₹178 cr | ₹182 cr | -2.53% | +2.30% |
| Profit before tax | ₹2,471 cr | ₹2,690 cr | -8.12% | +30.62% |
| Tax | ₹636 cr | ₹687 cr | -7.32% | +37.70% |
| Net profit | ₹1,835 cr | ₹2,003 cr | -8.39% | +28.33% |
| EPS (₹) | ₹9.99 | ₹10.91 | -8.43% | +28.24% |
Operating margin of 44.48% compares with a Commodities sector median of 14.63% across 75 peers that have reported Q2FY27.
What to watch
- Whether consolidated operating margin holds above 44.48% after the 6.58-point QoQ decline.
- Whether expense growth moves below the +15.95% QoQ rate relative to revenue growth of +2.21%.
- Whether other income remains near its 10.04% share of pre-tax profit.