NOCIL margin falls as costs outpace revenue growth in Q2FY27
Standalone expenses grew +9.14% QoQ versus revenue growth of +5.92%; management said the Dahej expansion entered trial production.
Filed 29 Oct 2026, 16:34 IST · after market close · NOCIL Ltd (NOCIL)
Key takeaways
- Standalone operating margin narrowed by 2.70 percentage points QoQ to 8.32% as expenses grew +9.14% against revenue growth of +5.92%.
- Net profit declined -12.74% QoQ to Rs 23.84 cr, partly cushioned by a 10.25 percentage-point fall in the tax rate to 14.86%.
- Management said the Rs 250 crore Dahej brownfield expansion entered trial production, while quarterly volumes declined 7% QoQ.
Price around the results
Costs outpaced revenue as volumes declined
NOCIL's standalone revenue grew +5.92% QoQ, but expenses rose faster at +9.14%, cutting operating profit by -20.04% and narrowing operating margin by 2.70 percentage points to 8.32%. Management said quarterly volumes declined 7% QoQ and that average selling prices were increased to cover higher input costs. The pricing action therefore came alongside weaker volumes rather than volume-led growth.
Lower tax cushioned the operating decline
Profit before tax declined -23.25% QoQ, while net profit fell a smaller -12.74% as the tax rate dropped 10.25 percentage points to 14.86%. Other income accounted for 23.11% of pre-tax profit, making it a meaningful support to reported earnings. Interest was unchanged QoQ at Rs 0.30 cr.
Margin trails 37- peer commodities median
Operating margin fell from 11.02% in Q1FY27 to 8.32% in Q2FY27, marking a sequential deterioration in the available quarterly trend. NOCIL's margin was 6.91 percentage points below the 15.23% median for the 37 commodities peers that had reported, placing it eighth from the bottom.
Dahej project reaches trial production
Management said the Rs 250 crore Dahej brownfield expansion moved into trial production and that samples had been sent for approval. The company filed these standalone results after market close on 29 October 2026.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹427 cr | ₹403 cr | +5.92% |
| Other income | ₹6 cr | ₹6 cr | +12.13% |
| Expenses | ₹391 cr | ₹359 cr | +9.14% |
| Operating profit | ₹36 cr | ₹44 cr | -20.04% |
| Operating margin (%) | 8.32% | 11.02% | — |
| Interest | ₹0 cr | ₹0 cr | +0.00% |
| Depreciation | ₹14 cr | ₹13 cr | +2.09% |
| Profit before tax | ₹28 cr | ₹36 cr | -23.25% |
| Tax | ₹4 cr | ₹9 cr | -54.59% |
| Net profit | ₹24 cr | ₹27 cr | -12.74% |
| EPS (₹) | ₹1.42 | ₹1.64 | -13.41% |
Operating margin of 8.32% compares with a Commodities sector median of 15.23% across 37 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Quarterly volumes declined 3% year on year and 7% quarter on quarter.
Expansion
- NOCIL's Rs.250 crore Dahej brownfield expansion moved into trial production, with samples sent for approval.
Problems & risks
- NOCIL increased average selling prices to cover higher input costs.
What to watch
- Whether standalone operating margin recovers from 8.32%.
- Whether quarterly volumes improve from the reported 7% QoQ decline.
- Updates on the Rs 250 crore Dahej expansion after trial production and sample submission.