Sharda Cropchem margin slips as expenses stay flat on softer revenue
Net profit still rose 4.21% QoQ, but lower tax and other income accounting for 41.52% of pre-tax profit shaped the result.
Filed 30 Oct 2026, 13:30 IST · Sharda Cropchem Ltd (SHARDACROP)
Key takeaways
- Consolidated operating margin fell 1.72 percentage points QoQ to 15.60% as revenue declined 2.06% while expenses fell just 0.02%.
- Net profit rose 4.21% QoQ even as pre-tax profit fell 9.24%, helped by an 11.02 percentage-point drop in the tax rate to 14.66%.
- Other income contributed 41.52% of pre-tax profit, making reported earnings materially dependent on non-operating income.
Price around the results
Softer revenue squeezed operating profit
In consolidated Q2FY27, revenue declined 2.06% QoQ while expenses were almost unchanged, falling only 0.02%. Costs therefore grew faster than revenue on a sequential basis, cutting operating profit by 11.76% and narrowing operating margin by 1.72 percentage points.
Tax relief offset weaker pre-tax profit
Pre-tax profit fell 9.24% QoQ, but net profit rose 4.21% as the tax rate dropped 11.02 percentage points to 14.66%. The quality of that increase is mixed: other income accounted for 41.52% of pre-tax profit, while interest expense fell 50.28%.
Margin is slightly above the commodity peer median
The 15.60% operating margin was 0.27 percentage points above the 15.33% median for the 54 commodity-sector peers that had reported. Sequentially, however, margin declined from 17.32% in Q1FY27, marking a clear quarter-on-quarter deterioration.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹1,052 cr | ₹1,074 cr | -2.06% |
| Other income | ₹45 cr | ₹35 cr | +29.25% |
| Expenses | ₹888 cr | ₹888 cr | -0.02% |
| Operating profit | ₹164 cr | ₹186 cr | -11.76% |
| Operating margin (%) | 15.60% | 17.32% | — |
| Interest | ₹1 cr | ₹2 cr | -50.28% |
| Depreciation | ₹100 cr | ₹100 cr | +0.08% |
| Profit before tax | ₹107 cr | ₹118 cr | -9.24% |
| Tax | ₹16 cr | ₹30 cr | -48.17% |
| Net profit | ₹92 cr | ₹88 cr | +4.21% |
| EPS (₹) | ₹10.17 | ₹9.76 | +4.20% |
Operating margin of 15.60% compares with a Commodities sector median of 15.33% across 54 peers that have reported Q2FY27.
What to watch
- Whether revenue reverses the 2.06% QoQ decline while expenses remain close to the Q2FY27 change of -0.02%.
- Whether operating margin holds above 15.60% after falling 1.72 percentage points sequentially.
- Whether other income remains below its Q2FY27 contribution of 41.52% of pre-tax profit and the tax rate stays near 14.66%.