Operating profit jumped, but net profit fell 32.58% YoY
Revenue rose 92.22% and operating margin improved, but an 88.38% collapse in other income pulled down pre-tax and net profit.
Filed 12 Nov 2026, 15:18 IST · Premier Explosives Ltd (PREMEXPLN)
Key takeaways
- Revenue grew +92.22% YoY and operating margin expanded 3.27 percentage points as expenses grew slower, but net profit fell -32.58%.
- QoQ revenue growth of +41.65% outpaced expense growth of +32.44%, lifting operating margin by 6.12 percentage points.
- Other income contributed 15.65% of pre-tax profit, while the 11.85% operating margin was 0.55 percentage points below the 12.4% median of 149 reported sector peers.
Price around the results
Revenue growth did not translate into higher YoY profit
On a consolidated basis, revenue grew +92.22% YoY while expenses rose +85.35%, allowing operating profit to increase +165.33% and operating margin to expand 3.27 percentage points. Pre-tax profit nevertheless declined -34.29% because other income fell -88.38% from the year-earlier quarter. The lower tax rate, down 1.89 percentage points, and a -21.92% fall in interest costs did not offset that loss of non-operating income.
QoQ margin recovery outpaced revenue growth
Revenue increased +41.65% QoQ, while expenses rose +32.44%, producing a 6.12-percentage-point expansion in operating margin. Pre-tax profit rose +290.14% and net profit increased +289.61%, helped by the operating improvement and broadly stable tax rate, which changed by just 0.01 percentage points. The 11.85% margin was 0.55 percentage points below the 12.4% median for 149 Commodities peers that had reported the quarter.
Margins have recovered for two quarters but remain below earlier peaks
Operating margin improved from -0.43% in Q4FY26 to 5.73% in Q1FY27 and 11.85% in Q2FY27. Despite that two-quarter recovery, the latest margin remains below 14.31% in Q3FY26 and 14.69% in Q1FY26. Other income was 15.65% of pre-tax profit this quarter, so reported earnings still included a material non-operating contribution.
No market reaction yet; past responses leaned negative
The stock response to this filing is not yet available. Across the previous eight results, the stock rose after three and fell after five, with a median absolute move of 2.68%. The historical pattern therefore leaned negative, although individual moves ranged from -9.99% to +19.99%.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹145 cr | ₹103 cr | +41.65% | +92.22% |
| Other income | ₹3 cr | ₹2 cr | +42.70% | -88.38% |
| Expenses | ₹128 cr | ₹97 cr | +32.44% | +85.35% |
| Operating profit | ₹17 cr | ₹6 cr | +192.86% | +165.33% |
| Operating margin (%) | 11.85% | 5.73% | — | — |
| Interest | ₹1 cr | ₹1 cr | -8.06% | -21.92% |
| Depreciation | ₹3 cr | ₹3 cr | +3.14% | +1.02% |
| Profit before tax | ₹16 cr | ₹4 cr | +290.14% | -34.29% |
| Tax | ₹4 cr | ₹1 cr | +291.67% | -38.70% |
| Net profit | ₹12 cr | ₹3 cr | +289.61% | -32.58% |
| EPS (₹) | ₹2.23 | ₹0.57 | +291.23% | -32.83% |
Operating margin of 11.85% compares with a Commodities sector median of 12.40% across 149 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 11.85% after its 6.12-percentage-point QoQ expansion.
- Whether other income remains a significant contributor after accounting for 15.65% of pre-tax profit.
- Whether expense growth stays below revenue growth after +32.44% versus +41.65% QoQ.