Primo Chemicals swings to loss as operating margin drops 10.16 points
Consolidated expenses rose 7.59% QoQ despite a 3.88% revenue decline, while a tax credit reduced the reported loss.
Filed 02 Nov 2026, 16:09 IST · after market close · Primo Chemicals Ltd (PRIMO)
Key takeaways
- Primo Chemicals reported a consolidated net loss of Rs 0.41 cr in Q2FY27, against a Rs 4.68 cr profit in Q1FY27.
- Operating margin fell 10.16 percentage points QoQ as revenue declined 3.88% while expenses rose 7.59%.
- The company’s 4.67% operating margin was 9.96 percentage points below the 14.63% median for 75 reported commodities peers.
Price around the results
Q2 loss follows a sharp operating profit squeeze
Primo Chemicals’ consolidated revenue declined 3.88% QoQ to Rs 134.84 cr, while operating profit fell 69.76% to Rs 6.29 cr. The weaker operating result, combined with Rs 3.96 cr of interest and Rs 13.47 cr of depreciation, pushed profit before tax to a loss of Rs 6.15 cr. Net loss was Rs 0.41 cr, compared with a Rs 4.68 cr profit in Q1FY27.
Higher costs and a tax credit shaped the reported loss
Expenses rose 7.59% QoQ even as revenue fell, cutting operating margin to 4.67% from 14.83%. Interest expense increased 7.32%, while depreciation was broadly unchanged, declining 0.15%. Other income fell 20.70% to Rs 4.98 cr and represented -80.98% of pre-tax profit; the tax line was a Rs 5.74 cr credit, with the tax rate moving up 40.55 percentage points to 93.26%.
Margin trails the commodities peer median
The quarter marks a clear sequential deterioration, with operating margin down 10.16 percentage points from Q1FY27. Primo Chemicals’ 4.67% margin was 9.96 percentage points below the 14.63% median among 75 commodities companies that had reported the same quarter. It ranked 10th from the bottom on this measure.
Results were filed after market close
The consolidated results were filed after market close on 02 Nov 2026. There is therefore no post-results stock reaction to assess yet.
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 | ₹135 cr | ₹140 cr | -3.88% |
| Other income | ₹5 cr | ₹6 cr | -20.70% |
| Expenses | ₹129 cr | ₹119 cr | +7.59% |
| Operating profit | ₹6 cr | ₹21 cr | -69.76% |
| Operating margin (%) | 4.67% | 14.83% | — |
| Interest | ₹4 cr | ₹4 cr | +7.32% |
| Depreciation | ₹13 cr | ₹13 cr | -0.15% |
| Profit before tax | ₹-6 cr | ₹10 cr | — |
| Tax | ₹-6 cr | ₹5 cr | — |
| Net profit | ₹-0 cr | ₹5 cr | — |
| EPS (₹) | ₹0.01 | ₹0.19 | -94.74% |
Operating margin of 4.67% compares with a Commodities sector median of 14.63% across 75 peers that have reported Q2FY27.
What to watch
- Whether operating margin moves above the Q2FY27 level of 4.67%.
- Whether expenses moderate after rising 7.59% QoQ.
- Whether the Rs 5.74 cr tax credit is repeated or reverses.