SPIC's costs outpace revenue growth as margin slips to 6.16%
Sequential revenue rose 17.71%, but expenses grew 18.69%; a 20.11-point tax-rate increase cut net profit 21.80%.
Filed 04 Nov 2026, 18:42 IST · after market close · Southern Petrochemicals Industries Corporation Ltd (SPIC)
Key takeaways
- Revenue grew 17.71% sequentially, but expenses grew faster at 18.69%, narrowing operating margin by 0.77 percentage points.
- Net profit fell 21.80% sequentially as the tax rate rose 20.11 percentage points to 24.01%.
- SPIC's 6.16% operating margin was 7.11 percentage points below the 13.27% median for 111 reported commodity peers.
Price around the results
Revenue growth did not keep pace with cost growth
In consolidated Q2FY27 results, revenue rose 17.71% sequentially to Rs 999.17 cr, while expenses increased 18.69% to Rs 937.65 cr. The faster rise in costs reduced operating margin by 0.77 percentage points to 6.16%. Operating profit therefore grew only 4.64%, despite the sharper increase in revenue.
Higher tax and interest reduced earnings conversion
Profit before tax was broadly flat sequentially, declining 1.10%, as interest expense rose 20.99% and other income fell 7.06%. Tax rate increased by 20.11 percentage points to 24.01%, compared with 3.90% in Q1FY27, bringing net profit down 21.80%. Other income accounted for 32.08% of pre-tax profit, making reported earnings partly dependent on non-operating income.
Margin trails the reported commodity-sector median
SPIC's 6.16% operating margin was 7.11 percentage points below the 13.27% median among 111 commodity peers that had reported the same quarter. The margin also declined sequentially from 6.93%, marking a weaker second quarter than the first quarter of FY27. The consolidated results were filed after market close on 4 November 2026.
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 | ₹999 cr | ₹849 cr | +17.71% |
| Other income | ₹20 cr | ₹21 cr | -7.06% |
| Expenses | ₹938 cr | ₹790 cr | +18.69% |
| Operating profit | ₹62 cr | ₹59 cr | +4.64% |
| Operating margin (%) | 6.16% | 6.93% | — |
| Interest | ₹10 cr | ₹8 cr | +20.99% |
| Depreciation | ₹10 cr | ₹10 cr | +2.68% |
| Profit before tax | ₹62 cr | ₹63 cr | -1.10% |
| Tax | ₹15 cr | ₹2 cr | +509.43% |
| Net profit | ₹47 cr | ₹60 cr | -21.80% |
| EPS (₹) | ₹2.31 | ₹2.96 | -21.96% |
Operating margin of 6.16% compares with a Commodities sector median of 13.27% across 111 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 6.16% after the sequential decline of 0.77 percentage points.
- Whether expenses continue to grow faster than revenue after the 18.69% versus 17.71% gap.
- Whether the tax rate moves down from 24.01% and reduces the drag on net profit.