Nuvoco's operating margin drops 3.53 percentage points sequentially
Revenue fell 10.83% sequentially while expenses declined only 6.98%, reversing the margin improvement seen in the previous two quarters.
Filed 22 Oct 2026, 18:49 IST · after market close · Nuvoco Vistas Corporation Ltd (NUVOCO)
Key takeaways
- Consolidated net profit rose +77.85% YoY to Rs 64.79 cr, helped by a -29.22% decline in interest costs despite a higher tax rate.
- Sequential momentum weakened sharply as revenue fell -10.83% while expenses declined only -6.98%, cutting operating margin by 3.53 percentage points.
- Operating margin at 14.63% was 1.34 percentage points below the 15.97% median of 15 reported Commodities peers.
Price around the results
Sequential slowdown reverses the Q1FY27 margin gain
Nuvoco’s consolidated revenue fell -10.83% QoQ to Rs 2,789.97 cr, while operating profit declined -28.15% to Rs 408.30 cr. Expenses fell only -6.98%, so operating margin narrowed from 18.16% to 14.63%, a 3.53 percentage-point decline. This reverses the improvement seen from 14.20% in Q3FY26 to 18.16% in Q1FY27.
YoY profit growth came despite a higher tax rate
Revenue increased +13.53% YoY, but expenses grew faster at +13.92%, leaving operating margin 0.30 percentage points lower than a year earlier. Interest costs fell -29.22% YoY, supporting the rise in profit before tax, while the tax rate increased by 11.19 percentage points to 40.01%. Other income contributed only 2.62% of pre-tax profit, so it was not a material source of earnings.
Margin remains below the reported peer median
The 14.63% operating margin was 1.34 percentage points below the 15.97% median for 15 reported Commodities peers, placing Nuvoco sixth from the bottom on this measure. Across the recent quarters, margin has been volatile: it moved from 18.05% in Q1FY26 to 14.20% in Q3FY26, recovered to 18.16% in Q1FY27, and then fell back to 14.63%.
Initial market reaction was within the stock’s usual range
The stock fell -1.98% in the first reaction session, against a median absolute move of 3.07% across its last eight result reactions. The move was therefore smaller than its typical result-day swing, although trading volume was 2.2 times the reference level. The results were filed after market close on 22 October 2026.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹2,790 cr | ₹3,129 cr | -10.83% | +13.53% |
| Other income | ₹3 cr | ₹4 cr | -21.61% | -27.06% |
| Expenses | ₹2,382 cr | ₹2,560 cr | -6.98% | +13.92% |
| Operating profit | ₹408 cr | ₹568 cr | -28.15% | +11.26% |
| Operating margin (%) | 14.63% | 18.16% | — | — |
| Interest | ₹72 cr | ₹70 cr | +2.28% | -29.22% |
| Depreciation | ₹231 cr | ₹226 cr | +2.53% | +6.01% |
| Profit before tax | ₹108 cr | ₹276 cr | -60.87% | +111.02% |
| Tax | ₹43 cr | ₹116 cr | -62.87% | +192.95% |
| Net profit | ₹65 cr | ₹160 cr | -59.41% | +77.85% |
| EPS (₹) | ₹1.81 | ₹4.47 | -59.51% | +77.45% |
Operating margin of 14.63% compares with a Commodities sector median of 15.97% across 15 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -1.98% | -1.60% |
Volume on the results session was 2.20× its 20-day average.
What to watch
- Whether operating margin holds above 14.63% after the 3.53 percentage-point sequential decline.
- Whether revenue momentum recovers from the -10.83% QoQ contraction.
- Whether interest costs remain below the Rs 71.88 cr reported this quarter.