Polyplex profit rises despite operating margin squeeze
Lower interest costs and higher other income lifted net profit even as expenses outpaced revenue growth and operating profit declined QoQ.
Filed 13 Nov 2026, 19:11 IST · after market close · Polyplex Corporation Ltd (POLYPLEX)
Key takeaways
- Consolidated net profit rose 5.03% QoQ to Rs 179.67 cr even as operating profit fell 2.69%.
- Operating margin narrowed 0.74 percentage points QoQ because expenses grew 4.01%, faster than revenue growth of 3.13%.
- Other income rose 71.14% QoQ and contributed 19.74% of pre-tax profit, making it a material part of the quarter's earnings.
Price around the results
Net profit rose while operating profit weakened
Polyplex reported consolidated revenue of Rs 2,324.09 cr in Q2FY27, up 3.13% QoQ, but operating profit fell 2.69% to Rs 288.45 cr. Net profit still increased 5.03% to Rs 179.67 cr, helped by a 14.91% decline in interest costs and a 4.84% rise in pre-tax profit.
Faster expense growth narrowed the operating margin
Expenses increased 4.01% QoQ, faster than revenue, reducing operating margin by 0.74 percentage points to 12.41%. Other income rose 71.14% to Rs 43.59 cr and accounted for 19.74% of pre-tax profit, while the tax rate eased 0.14 percentage points to 18.65%; both supported reported net profit.
Margin remained above the Industrials peer median
Polyplex's 12.41% operating margin was 0.95 percentage points above the 11.46% median among 267 Industrials peers that had reported the same quarter. The available quarter-on-quarter trend shows margin moving down from 13.15% in Q1FY27, despite revenue growth.
Results were filed after market close
The consolidated results were filed at 19:11 IST on 13 November 2026, after market close. There is therefore no post-results market reaction to assess yet, and no recent reaction history is provided for comparison.
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 |
|---|---|---|---|
| Revenue | ₹2,324 cr | ₹2,254 cr | +3.13% |
| Other income | ₹44 cr | ₹25 cr | +71.14% |
| Expenses | ₹2,036 cr | ₹1,957 cr | +4.01% |
| Operating profit | ₹288 cr | ₹296 cr | -2.69% |
| Operating margin (%) | 12.41% | 13.15% | — |
| Interest | ₹14 cr | ₹17 cr | -14.91% |
| Depreciation | ₹97 cr | ₹94 cr | +2.61% |
| Profit before tax | ₹221 cr | ₹211 cr | +4.84% |
| Tax | ₹41 cr | ₹40 cr | +4.04% |
| Net profit | ₹180 cr | ₹171 cr | +5.03% |
| EPS (₹) | ₹31.93 | ₹29.00 | +10.10% |
Operating margin of 12.41% compares with a Industrials sector median of 11.46% across 267 peers that have reported Q2FY27.
What to watch
- Whether operating margin recovers from 12.41% next quarter.
- Whether expense growth slows from 4.01% relative to revenue growth of 3.13%.
- Whether other income remains a material contributor after accounting for 19.74% of pre-tax profit.