Punjab Chemicals' margin drops 2.71 points as profit falls 39.01%
Sequential revenue fell 5.92%, while expenses declined 3.03%; higher interest also weighed on pre-tax profit.
Filed 03 Nov 2026, 13:37 IST · Punjab Chemicals & Crop Protection Ltd (PUNJABCHEM)
Key takeaways
- Consolidated operating profit fell 27.59% QoQ as revenue declined 5.92% and expenses fell only 3.03%.
- Operating margin narrowed 2.71 percentage points to 9.04%, 5.14 percentage points below the 14.18% median for 92 Commodities peers.
- Net profit fell 39.01% QoQ to Rs 13.46 cr, with interest up 37.96% and other income contributing 13.07% of pre-tax profit.
Price around the results
Revenue slipped, but profit fell faster
Punjab Chemicals reported consolidated Q2FY27 revenue of Rs 326.7 cr, down 5.92% QoQ, while operating profit declined 27.59% to Rs 29.55 cr. The sharper operating-profit decline reflects weaker operating leverage as costs did not fall as quickly as revenue.
Costs and interest drove the margin squeeze
Expenses decreased 3.03%, less than the 5.92% revenue decline, narrowing operating margin by 2.71 percentage points to 9.04%. Interest expense rose 37.96% QoQ, helping push pre-tax profit down 39.16%; other income accounted for 13.07% of pre-tax profit, while the tax rate eased only 0.17 percentage points.
Margin trails the Commodities peer median
The quarter marked a clear sequential deterioration from Q1FY27, when operating margin was 11.75% and net profit was Rs 22.07 cr. Punjab Chemicals' 9.04% margin was 5.14 percentage points below the 14.18% median among 92 Commodities peers that had reported.
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 | ₹327 cr | ₹347 cr | -5.92% |
| Other income | ₹2 cr | ₹1 cr | +251.47% |
| Expenses | ₹297 cr | ₹306 cr | -3.03% |
| Operating profit | ₹30 cr | ₹41 cr | -27.59% |
| Operating margin (%) | 9.04% | 11.75% | — |
| Interest | ₹6 cr | ₹4 cr | +37.96% |
| Depreciation | ₹8 cr | ₹7 cr | +9.02% |
| Profit before tax | ₹18 cr | ₹30 cr | -39.16% |
| Tax | ₹5 cr | ₹8 cr | -39.55% |
| Net profit | ₹13 cr | ₹22 cr | -39.01% |
| EPS (₹) | ₹10.98 | ₹18.00 | -39.00% |
Operating margin of 9.04% compares with a Commodities sector median of 14.18% across 92 peers that have reported Q2FY27.
What to watch
- Whether operating margin recovers from 9.04% after the 2.71-percentage-point QoQ decline.
- Whether interest expense reverses its 37.96% QoQ increase from Rs 4.11 cr.
- Whether other income remains a material contributor after accounting for 13.07% of Q2FY27 pre-tax profit.