Higher revenue failed to lift NCL Industries' operating profit
Operating profit fell 6.11% sequentially as costs grew faster than revenue, while other income supported a 14.84% rise in net profit.
Filed 12 Nov 2026, 15:51 IST · after market close · NCL Industries Ltd (NCLIND)
Key takeaways
- Revenue rose 12.29% sequentially, but expenses grew 14.69%, driving a 1.89 percentage-point decline in operating margin.
- Net profit increased 14.84% sequentially, helped by a 133.41% rise in other income, which contributed 36.2% of pre-tax profit.
- The 9.64% operating margin was 2.76 percentage points below the 12.4% median of 149 reported commodities-sector peers.
Price around the results
Revenue growth did not translate into operating profit
In consolidated results, revenue grew 12.29% sequentially to Rs 385.92 cr, but expenses rose faster at 14.69%. That cost mismatch reduced operating profit by 6.11% to Rs 37.19 cr and cut operating margin by 1.89 percentage points to 9.64%.
Other income drove much of the profit increase
Profit before tax increased 13.22% sequentially despite the weaker operating result, as other income rose 133.41% to Rs 9.64 cr. Other income accounted for 36.2% of pre-tax profit, making the earnings increase less dependent on core operations. Interest expense fell 5.08%, while the tax rate declined by 1.03 percentage points to 25.05%.
Operating margin lagged the commodities-sector median
NCL Industries' 9.64% operating margin was below the 12.4% median among 149 commodities-sector peers that had reported the quarter. The company stood 2.76 percentage points below that median, highlighting the margin gap despite sequential revenue growth.
No market reaction was available yet
The consolidated results were filed after market close on 12 Nov 2026. The stock's immediate response therefore cannot yet be assessed against its past post-results trading pattern.
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 |
|---|---|---|---|
| Revenue | ₹386 cr | ₹344 cr | +12.29% |
| Other income | ₹10 cr | ₹4 cr | +133.41% |
| Expenses | ₹349 cr | ₹304 cr | +14.69% |
| Operating profit | ₹37 cr | ₹40 cr | -6.11% |
| Operating margin (%) | 9.64% | 11.53% | — |
| Interest | ₹5 cr | ₹6 cr | -5.08% |
| Depreciation | ₹15 cr | ₹15 cr | +1.77% |
| Profit before tax | ₹27 cr | ₹24 cr | +13.22% |
| Tax | ₹7 cr | ₹6 cr | +8.81% |
| Net profit | ₹20 cr | ₹17 cr | +14.84% |
| EPS (₹) | ₹4.41 | ₹3.84 | +14.84% |
Operating margin of 9.64% compares with a Commodities sector median of 12.40% across 149 peers that have reported Q2FY27.
What to watch
- Whether operating margin recovers from 9.64% after the 1.89 percentage-point sequential decline.
- Whether expenses grow more slowly than revenue after rising 14.69% against revenue growth of 12.29%.
- Whether other income remains a smaller contributor than its 36.2% share of pre-tax profit.