Panama Petrochem margin drops 5.18 points as costs rise
Revenue was almost flat sequentially, but expenses rose 5.89%; the stock fell 2.06% on 3.66-times normal volume.
Filed 04 Nov 2026, 12:45 IST · Panama Petrochem Ltd (PANAMAPET)
Key takeaways
- Consolidated operating margin fell 5.18 percentage points as expenses rose 5.89% while revenue declined 0.74% sequentially.
- Net profit declined 21.23% to Rs 243.34 cr even as the tax rate fell 1.89 percentage points.
- Operating margin at 17.17% remained 1.6 percentage points above the Energy-sector median across 21 reported peers.
Price around the results
Costs reversed the operating performance
Panama Petrochem’s consolidated operating profit fell 23.76% sequentially, despite revenue declining only 0.74%. Expenses rose 5.89%, so costs grew faster than revenue and operating margin narrowed by 5.18 percentage points to 17.17%. This was the main reason profit before tax fell 23.02%.
Lower tax softened the profit decline
Net profit fell 21.23% sequentially, a smaller decline than pre-tax profit because the tax rate dropped 1.89 percentage points to 17.37%. Other income rose 94.59%, but it accounted for only 2.56% of pre-tax profit and did not materially change the quarter’s profit quality. Interest expense declined 10.73%, partly offsetting the operating weakness.
Margin remains above the sector median
The company’s 17.17% operating margin was 1.6 percentage points above the Energy-sector median among 21 peers that had reported the quarter. The quarter nevertheless marked a sharp sequential reversal from the 22.35% margin in Q1FY27. The stock fell 2.06% on the reaction day, underperforming the market by 2.69 percentage points, with volume at 3.66 times normal.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹1,722 cr | ₹1,735 cr | -0.74% |
| Other income | ₹8 cr | ₹4 cr | +94.59% |
| Expenses | ₹1,427 cr | ₹1,347 cr | +5.89% |
| Operating profit | ₹296 cr | ₹388 cr | -23.76% |
| Operating margin (%) | 17.17% | 22.35% | — |
| Interest | ₹5 cr | ₹6 cr | -10.73% |
| Depreciation | ₹4 cr | ₹4 cr | +4.62% |
| Profit before tax | ₹295 cr | ₹383 cr | -23.02% |
| Tax | ₹51 cr | ₹74 cr | -30.56% |
| Net profit | ₹243 cr | ₹309 cr | -21.23% |
| EPS (₹) | ₹40.22 | ₹51.06 | -21.23% |
Operating margin of 17.17% compares with a Energy sector median of 15.57% across 21 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -2.06% | -2.69% |
Volume on the results session was 3.66× its 20-day average.
What to watch
- Whether operating margin recovers from 17.17% after the 5.18-percentage-point sequential decline.
- Whether expenses moderate from the 5.89% sequential increase while revenue remains near Rs 1,722.34 cr.
- Whether the tax rate stays near 17.37% rather than returning to 19.26%.