Revenue drop turns Orient Paper's operating profit into a loss
Costs fell much slower than revenue, taking operating margin to -12.68% and widening the standalone net loss to Rs 28.75 cr.
Filed 05 Nov 2026, 17:03 IST · after market close · Orient Paper & Industries Ltd (ORIENTPPR)
Key takeaways
- Standalone revenue fell -19.54% QoQ while expenses declined only -6.03%, pushing operating margin down 16.20 percentage points.
- The company moved from an operating profit of Rs 8.01 cr in Q1FY27 to an operating loss of Rs 23.23 cr, with net loss widening to Rs 28.75 cr.
- Operating margin of -12.68% was 25.53 percentage points below the 12.85% median for 126 reported Commodities peers.
Price around the results
A sharp sequential drop in revenue
Orient Paper's standalone revenue fell -19.54% QoQ to Rs 183.14 cr, while expenses declined only -6.03% to Rs 206.36 cr. That mismatch reversed the operating result from a profit of Rs 8.01 cr in Q1FY27 to a loss of Rs 23.23 cr. Net loss widened from Rs 8.25 cr to Rs 28.75 cr, while EPS declined from Rs -0.39 to Rs -1.35.
Lower revenue absorption drove the margin collapse
The slower decline in expenses than revenue narrowed operating margin by 16.20 percentage points to -12.68%. Interest expense rose +5.61% and depreciation increased +1.36% QoQ, adding to the pressure below operating profit. Other income rose +172.92% to Rs 6.55 cr but did not offset the operating loss; it represented -17.01% of pre-tax profit, while the tax rate increased by 1.25 percentage points to 25.33%.
Among the weakest reported sector margins
Orient Paper's -12.68% operating margin was 25.53 percentage points below the 12.85% median among 126 Commodities peers that had reported the quarter. The company ranked third from the bottom on this measure. The standalone results were filed after market close on 5 Nov 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 | ₹183 cr | ₹228 cr | -19.54% |
| Other income | ₹7 cr | ₹2 cr | +172.92% |
| Expenses | ₹206 cr | ₹220 cr | -6.03% |
| Operating profit | ₹-23 cr | ₹8 cr | — |
| Operating margin (%) | -12.68% | 3.52% | — |
| Interest | ₹7 cr | ₹7 cr | +5.61% |
| Depreciation | ₹15 cr | ₹15 cr | +1.36% |
| Profit before tax | ₹-39 cr | ₹-11 cr | -254.28% |
| Tax | ₹-10 cr | ₹-3 cr | -272.14% |
| Net profit | ₹-29 cr | ₹-8 cr | -248.48% |
| EPS (₹) | ₹-1.35 | ₹-0.39 | -246.15% |
Operating margin of -12.68% compares with a Commodities sector median of 12.85% across 126 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -2.42% | -4.44% |
Volume on the results session was 0.48× its 20-day average.
What to watch
- Whether revenue recovers from Rs 183.14 cr after the -19.54% QoQ decline.
- Whether operating margin improves from -12.68% after the 16.20-percentage-point sequential drop.
- Whether interest expense declines from Rs 6.96 cr after rising +5.61% QoQ.