Margin improves despite a 28.76% sequential revenue drop
Costs fell slightly faster than revenue, but a higher tax rate drove a 41.49% sequential decline in net profit.
Filed 04 Nov 2026, 12:45 IST · Ramco Industries Ltd (RAMCOIND)
Key takeaways
- Consolidated revenue fell 28.76% sequentially, but expenses fell 29.15%, lifting operating margin by 0.45 percentage points to 17.58%.
- Net profit declined 41.49% sequentially as the tax rate rose 12.86 percentage points to 36.31%, despite a 39.85% fall in interest costs.
- Other income contributed 17.66% of pre-tax profit, while the stock rose 5.25% after the results.
Price around the results
Revenue contraction, slightly better operating leverage
Consolidated revenue declined 28.76% sequentially to Rs 437.28 cr, while expenses declined 29.15%. The sharper fall in costs limited the operating-profit decline to 26.89% and lifted operating margin by 0.45 percentage points to 17.58%.
Tax rate overshadowed lower interest costs
Pre-tax profit fell 29.69%, but net profit fell faster at 41.49% as the tax rate increased from 23.45% to 36.31%. Interest costs declined 39.85%, while other income fell 30.55% but still accounted for 17.66% of pre-tax profit, making reported earnings partly dependent on non-operating income.
Operating margin remains above the commodity peer median
Among 111 Commodities companies that had reported the same quarter, Ramco Industries' 17.58% operating margin was 4.31 percentage points above the sector median of 13.27%. With only the immediately preceding quarter in the comparison, the available direction is a 0.45-percentage-point sequential margin improvement rather than a multi-quarter trend.
Shares rose 5.25% after the filing
The stock gained 5.25% on the results date, opened 1.00% higher and delivered a 4.62% relative return. Trading volume was 4.36 times the reference level.
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 | ₹437 cr | ₹614 cr | -28.76% |
| Other income | ₹14 cr | ₹20 cr | -30.55% |
| Expenses | ₹360 cr | ₹509 cr | -29.15% |
| Operating profit | ₹77 cr | ₹105 cr | -26.89% |
| Operating margin (%) | 17.58% | 17.13% | — |
| Interest | ₹2 cr | ₹3 cr | -39.85% |
| Depreciation | ₹10 cr | ₹10 cr | +2.09% |
| Profit before tax | ₹80 cr | ₹113 cr | -29.69% |
| Tax | ₹29 cr | ₹27 cr | +8.86% |
| Net profit | ₹51 cr | ₹87 cr | -41.49% |
| EPS (₹) | ₹5.85 | ₹10.00 | -41.50% |
Operating margin of 17.58% compares with a Commodities sector median of 13.27% across 111 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +5.25% | +4.62% |
Volume on the results session was 4.36× its 20-day average.
What to watch
- Whether operating margin holds above 17.58%.
- Whether the tax rate moves down from 36.31%.
- Whether other income remains a meaningful part of pre-tax profit after contributing 17.66% this quarter.