N R Agarwal's margin slips sequentially after year-on-year recovery
Revenue growth remained positive, but faster expense growth and a 3.39-percentage-point rise in the tax rate reduced sequential profit.
Filed 03 Nov 2026, 17:17 IST · after market close · N R Agarwal Industries Ltd (NRAIL)
Key takeaways
- Standalone operating margin rose 2.55 percentage points year on year as revenue growth of +27.47% outpaced expense growth of +23.91%.
- Sequentially, margin narrowed 0.57 percentage points because expenses grew +4.04% against revenue growth of +3.38%, and net profit fell -11.55%.
- Net profit recovered to Rs 30.94 cr from a year-ago loss, with other income contributing 7.37% of pre-tax profit.
Price around the results
Year-on-year recovery meets a softer sequential quarter
This standalone quarter marked a clear year-on-year recovery: revenue grew +27.47% and operating profit rose +66.49%, turning last year's net loss into a net profit of Rs 30.94 cr. The comparison is less favourable sequentially, with operating profit down -1.75% and net profit down -11.55% despite revenue growth of +3.38%. Other income was 7.37% of pre-tax profit, so earnings were primarily driven by operations.
Costs caught up with revenue in Q2FY27
Operating margin expanded 2.55 percentage points year on year because expenses grew more slowly than revenue, but narrowed 0.57 percentage points sequentially as expenses rose +4.04% against revenue growth of +3.38%. Interest expense fell -5.41% sequentially and -8.26% year on year, partly offsetting the operating pressure, while depreciation rose +2.02% sequentially. The tax rate increased 3.39 percentage points sequentially to 26.96%, adding to the decline in net profit.
Margin remains below the Commodities peer median
The 10.91% operating margin was 3.27 percentage points below the 14.18% median for 92 Commodities companies that had reported the same quarter. The margin has improved materially from 3.65% in Q1FY26 and 8.36% in Q2FY26, but it has not moved in a straight line: it rose to 11.48% in Q1FY27 before easing in this quarter.
No immediate market reaction yet
The results were filed after market close, so there was no market reaction to report yet. After its last eight results, the stock rose twice and fell six times, with a median absolute move of 5.00%; the recent pattern therefore has been more often negative than positive, with moves that can be material.
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 | YoY |
|---|---|---|---|---|
| Revenue | ₹669 cr | ₹647 cr | +3.38% | +27.47% |
| Other income | ₹3 cr | ₹6 cr | -45.93% | — |
| Expenses | ₹596 cr | ₹573 cr | +4.04% | +23.91% |
| Operating profit | ₹73 cr | ₹74 cr | -1.75% | +66.49% |
| Operating margin (%) | 10.91% | 11.48% | — | — |
| Interest | ₹16 cr | ₹16 cr | -5.41% | -8.26% |
| Depreciation | ₹18 cr | ₹18 cr | +2.02% | +7.50% |
| Profit before tax | ₹42 cr | ₹46 cr | -7.43% | — |
| Tax | ₹11 cr | ₹11 cr | +5.84% | +893.04% |
| Net profit | ₹31 cr | ₹35 cr | -11.55% | — |
| EPS (₹) | ₹18.18 | ₹20.55 | -11.53% | — |
Operating margin of 10.91% compares with a Commodities sector median of 14.18% across 92 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 10.91% after the 0.57-percentage-point sequential decline.
- Whether expense growth stays below revenue growth after rising +4.04% versus +3.38% in Q2FY27.
- Whether the tax rate moves back from 26.96% after increasing 3.39 percentage points sequentially.