Operating improvement fails to prevent 11.68% QoQ profit decline
Revenue growth outpaced expense growth, but an 83.85% drop in other income pulled down pre-tax profit and net earnings.
Filed 06 Nov 2026, 19:23 IST · after market close · NGL Fine Chem Ltd (NGLFINE)
Key takeaways
- Consolidated revenue grew +14.05% QoQ to Rs 158.71 cr, while operating margin widened 0.95 percentage points to 17.68%.
- Net profit fell -11.68% QoQ to Rs 16.25 cr as other income dropped -83.85% and depreciation rose +24.76%.
- Operating margin improved for a third straight quarter but remained 3.98 percentage points below the 21.66% Healthcare peer median.
Price around the results
Revenue growth did not reach net profit
In consolidated Q2FY27 results, revenue rose +14.05% QoQ and operating profit increased +20.48%. Profit before tax nevertheless fell -11.76% because other income dropped -83.85%, while interest and depreciation increased +13.13% and +24.76%, respectively. Other income accounted for 5.56% of pre-tax profit, so the earnings decline was partly driven by a lower non-operating contribution.
Slower cost growth lifted the operating margin
Expenses grew +12.74% QoQ, below the +14.05% revenue increase, widening operating margin by 0.95 percentage points. The tax rate eased by 0.07 percentage points, which provided only a limited offset to the higher depreciation and interest burden. At 17.68%, the margin was 3.98 percentage points below the 21.66% median for 87 Healthcare peers that had reported the quarter.
Margin has risen for three consecutive quarters
Operating margin increased from 14.35% in Q4FY26 to 16.73% in Q1FY27 and 17.68% in Q2FY27. This marks a third straight quarterly improvement in operating performance, even as net profit declined from Rs 18.40 cr to Rs 16.25 cr in the latest quarter. The results were filed after market close, so there is no market reaction to assess yet.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹159 cr | ₹139 cr | +14.05% |
| Other income | ₹1 cr | ₹7 cr | -83.85% |
| Expenses | ₹131 cr | ₹116 cr | +12.74% |
| Operating profit | ₹28 cr | ₹23 cr | +20.48% |
| Operating margin (%) | 17.68% | 16.73% | — |
| Interest | ₹1 cr | ₹1 cr | +13.13% |
| Depreciation | ₹7 cr | ₹5 cr | +24.76% |
| Profit before tax | ₹22 cr | ₹24 cr | -11.76% |
| Tax | ₹5 cr | ₹6 cr | -12.01% |
| Net profit | ₹16 cr | ₹18 cr | -11.68% |
| EPS (₹) | ₹26.30 | ₹29.78 | -11.69% |
Operating margin of 17.68% compares with a Healthcare sector median of 21.66% across 87 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 17.68%.
- Whether other income recovers from Rs 1.20 cr without masking operating performance.
- Whether depreciation growth moderates from +24.76% QoQ.