Tax-rate cut drove a 130.68% QoQ jump in net profit
Revenue growth slightly outpaced expense growth, while the lower tax rate amplified profit growth despite higher interest costs.
Filed 04 Nov 2026, 17:42 IST · after market close · Oriental Aromatics Ltd (OAL)
Key takeaways
- Consolidated revenue grew 22.47% QoQ while operating profit rose 27.63%, lifting operating margin by 0.32 percentage points.
- Net profit increased 130.68% QoQ as the tax rate fell 14.36 percentage points, despite a 10.63% rise in interest costs.
- Operating margin at 7.94% was 5.33 percentage points below the 13.27% median for 111 reported commodities peers.
Price around the results
Revenue growth brought a modest margin lift
Oriental Aromatics' consolidated revenue grew 22.47% QoQ, ahead of the 22.05% rise in expenses. That cost outcome supported a 0.32 percentage-point improvement in operating margin to 7.94%, while operating profit grew 27.63%. The sequential direction was positive from Q1FY27, when operating margin was 7.62%.
Lower tax rate amplified earnings growth
The 14.36 percentage-point decline in the tax rate helped net profit grow 130.68% QoQ, well ahead of the 77.04% increase in profit before tax. Interest costs rose 10.63%, partly limiting the benefit from operating profit growth. Other income contributed 5.36% of pre-tax profit, so it was not the main source of the earnings increase.
Margin remains below the commodities peer median
The 7.94% operating margin was 5.33 percentage points below the 13.27% median among 111 commodities companies that had reported the same quarter, placing Oriental Aromatics 28th from the bottom. The results were filed after market close, so there is no post-results share-price reaction to assess against the stock's past results.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹318 cr | ₹260 cr | +22.47% |
| Other income | ₹1 cr | ₹1 cr | -50.00% |
| Expenses | ₹293 cr | ₹240 cr | +22.05% |
| Operating profit | ₹25 cr | ₹20 cr | +27.63% |
| Operating margin (%) | 7.94% | 7.62% | — |
| Interest | ₹9 cr | ₹8 cr | +10.63% |
| Depreciation | ₹8 cr | ₹8 cr | +1.04% |
| Profit before tax | ₹9 cr | ₹5 cr | +77.04% |
| Tax | ₹4 cr | ₹3 cr | +28.26% |
| Net profit | ₹6 cr | ₹3 cr | +130.68% |
| EPS (₹) | ₹1.72 | ₹0.75 | +129.33% |
Operating margin of 7.94% compares with a Commodities sector median of 13.27% across 111 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 7.94% in the next quarter.
- Whether expense growth remains below the 22.47% revenue growth rate recorded this quarter.
- Whether the tax rate stays below 37.94% after falling 14.36 percentage points sequentially.