P I Industries margin plunges as costs rise despite flat sequential revenue
Operating margin fell 7.91 percentage points sequentially, while higher tax and interest costs further reduced consolidated profit.
Filed 04 Nov 2026, 19:40 IST · after market close · P I Industries Ltd (PIIND)
Key takeaways
- Consolidated operating margin fell 15.24 percentage points year on year to 13.67% as expenses rose 10.38% while revenue declined 9.11%.
- Net profit declined 70.14% year on year, with a 11.51-percentage-point rise in the tax rate and interest expense up 223.08% adding to the pressure.
- Other income contributed 35.11% of pre-tax profit, while operating margin remained 0.4 percentage points above the 13.27% median for 111 reporting sector peers.
Price around the results
Revenue was flat sequentially, but profitability deteriorated
Consolidated revenue was almost unchanged sequentially, declining 0.03%, but expenses rose 10.05%, which drove operating profit down 36.66%. Year on year, revenue fell 9.11% while expenses increased 10.38%, producing a 15.24-percentage-point contraction in operating margin. Net profit consequently fell 49.96% sequentially and 70.14% year on year.
Tax, interest and other income weakened profit quality
The tax rate rose 9.48 percentage points sequentially and 11.51 percentage points year on year, amplifying the decline in pre-tax profit. Interest expense increased 6.33% sequentially and 223.08% year on year. Other income accounted for 35.11% of pre-tax profit, so reported earnings were supported materially by non-operating income.
Margin remains near the sector median but is far below earlier quarters
P I Industries' 13.67% operating margin was 0.4 percentage points above the 13.27% median among 111 Commodities peers that have reported the quarter. The margin was 28.91% in Q2FY26, fell to 21.97% in Q3FY26 and was 21.58% in Q1FY27 before dropping to 13.67% this quarter. This marks a sharp deterioration from the levels recorded through the first half of FY26.
No immediate market reaction after the post-close filing
The consolidated results were filed after market close, so no post-results share-price reaction is available yet. In the stock's last eight results reactions, all eight were negative, with a median absolute move of 2.68%.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,702 cr | ₹1,702 cr | -0.03% | -9.11% |
| Other income | ₹65 cr | ₹66 cr | -2.12% | -23.64% |
| Expenses | ₹1,469 cr | ₹1,335 cr | +10.05% | +10.38% |
| Operating profit | ₹233 cr | ₹367 cr | -36.66% | -57.01% |
| Operating margin (%) | 13.67% | 21.58% | — | — |
| Interest | ₹8 cr | ₹8 cr | +6.33% | +223.08% |
| Depreciation | ₹105 cr | ₹104 cr | +1.16% | +7.04% |
| Profit before tax | ₹184 cr | ₹322 cr | -42.82% | -64.97% |
| Tax | ₹62 cr | ₹78 cr | -20.36% | -46.72% |
| Net profit | ₹122 cr | ₹244 cr | -49.96% | -70.14% |
| EPS (₹) | ₹8.05 | ₹16.10 | -50.00% | -70.16% |
Operating margin of 13.67% compares with a Commodities sector median of 13.27% across 111 peers that have reported Q2FY27.
What to watch
- Whether operating margin recovers from 13.67% after the 7.91-percentage-point sequential decline.
- Whether expenses stop growing faster than revenue after rising 10.05% sequentially against a 0.03% revenue decline.
- Whether other income's 35.11% contribution to pre-tax profit reduces in the next quarter.