RCF profit rose 78.08% QoQ, but margin slipped as costs outpaced sales
Lower interest and tax costs lifted profit, while operating margin fell as expenses grew slightly faster than revenue.
Filed 12 Nov 2026, 15:58 IST · after market close · Rashtriya Chemicals & Fertilizers Ltd (RCF)
Key takeaways
- Consolidated net profit rose +78.08% QoQ to Rs 130.94 cr, helped by a 1.44 percentage-point fall in the tax rate.
- Revenue increased +41.20% QoQ, but expenses grew +41.46%, narrowing operating margin by 0.16 percentage points.
- RCF's 5.97% operating margin was 6.43 percentage points below the 12.4% median for 149 reported commodities peers.
Price around the results
Profit growth came below the operating line
RCF's consolidated profit before tax rose +74.61% QoQ, while net profit grew faster at +78.08%. The improvement came despite operating margin narrowing to 5.97%, as lower interest expense helped offset the operating squeeze. Other income contributed 12.45% of profit before tax, making it a material part of reported earnings.
Costs edged ahead of revenue growth
Revenue grew +41.20% QoQ, but expenses rose +41.46%, reducing operating margin by 0.16 percentage points. Interest expense fell -7.33% and depreciation fell -1.14%, supporting the increase in profit before tax. The tax rate also declined by 1.44 percentage points to 26.06%, which amplified the rise in net profit.
Margin remained below the commodities peer median
RCF's operating margin of 5.97% was 6.43 percentage points below the 12.4% median across 149 commodities peers that had reported. The company ranked 30th from the bottom on this measure. Sequentially, margin moved down from 6.13% in Q1FY27 to 5.97% in Q2FY27.
Results were filed after market close
The consolidated results were filed at 15:58 IST on 12 Nov 2026, after market close. The stock's post-results response is therefore not part of this read-through.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹5,063 cr | ₹3,586 cr | +41.20% |
| Other income | ₹22 cr | ₹35 cr | -36.45% |
| Expenses | ₹4,761 cr | ₹3,366 cr | +41.46% |
| Operating profit | ₹302 cr | ₹220 cr | +37.37% |
| Operating margin (%) | 5.97% | 6.13% | — |
| Interest | ₹65 cr | ₹71 cr | -7.33% |
| Depreciation | ₹82 cr | ₹83 cr | -1.14% |
| Profit before tax | ₹177 cr | ₹101 cr | +74.61% |
| Tax | ₹46 cr | ₹28 cr | +65.47% |
| Net profit | ₹131 cr | ₹74 cr | +78.08% |
| EPS (₹) | ₹2.37 | ₹1.33 | +78.20% |
Operating margin of 5.97% compares with a Commodities sector median of 12.40% across 149 peers that have reported Q2FY27.
What to watch
- Operating margin versus 5.97% in Q2FY27.
- Whether expense growth remains below or above the +41.20% revenue growth rate.
- The tax rate versus 26.06% and other income's 12.45% share of profit before tax.