Steamhouse profit drops 57.63% as costs and interest rise
Consolidated operating margin narrowed 4.77 percentage points QoQ as expenses grew 5.75% while revenue slipped 0.48%.
Filed 29 Oct 2026, 16:25 IST · after market close · Steamhouse India Ltd (STEAMHOUSE)
Key takeaways
- Consolidated net profit fell 57.63% QoQ to Rs 7.77 cr as interest rose 39.16% and the tax rate climbed 19.6 percentage points.
- Operating margin narrowed 4.77 percentage points to 19.28% because expenses grew 5.75% while revenue slipped 0.48%.
- Steamhouse's 19.28% operating margin remained 4.05 percentage points above the 15.23% median for 37 reported commodities peers.
Price around the results
Costs erased Q1FY27 earnings momentum
Revenue was almost unchanged sequentially, but expenses rose 5.75%, which cut operating margin by 4.77 percentage points to 19.28%. Interest expense also increased 39.16% to Rs 9.63 cr, while the 19.6 percentage-point rise in the tax rate further reduced profit after tax. Other income accounted for 12.29% of pre-tax profit, providing some support but not enough to offset the higher operating and financing costs.
Margin stayed above the commodities peer median
Steamhouse's consolidated operating margin was 4.05 percentage points above the 15.23% median among 37 commodities companies that had reported the quarter. The sequential comparison was less favourable, with operating margin down from 24.05% in Q1FY27 to 19.28% in Q2FY27. The available quarter-to-quarter record therefore shows a sharp reversal in margin momentum rather than a sustained improvement.
Management links recovery to utilisation and new capacity
Management said recovery was already visible in Q1FY27 as customer capacity revamps progressed and utilisation improved, while also noting subdued performance among chemical and pharmaceutical customers in recent years. The company said higher capacity utilisation is expected to improve operating leverage and support margin expansion.
Results came after the market close
The consolidated results were filed after market close on 29 October 2026, so there was no trading session yet for the stock to respond.
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 | ₹128 cr | ₹129 cr | -0.48% |
| Other income | ₹1 cr | ₹2 cr | -33.78% |
| Expenses | ₹103 cr | ₹98 cr | +5.75% |
| Operating profit | ₹25 cr | ₹31 cr | -20.21% |
| Operating margin (%) | 19.28% | 24.05% | — |
| Interest | ₹10 cr | ₹7 cr | +39.16% |
| Depreciation | ₹4 cr | ₹4 cr | +1.61% |
| Profit before tax | ₹12 cr | ₹22 cr | -44.68% |
| Tax | ₹4 cr | ₹4 cr | +21.85% |
| Net profit | ₹8 cr | ₹18 cr | -57.63% |
| EPS (₹) | ₹0.33 | ₹0.81 | -59.26% |
Operating margin of 19.28% compares with a Commodities sector median of 15.23% across 37 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- The company said recovery was already visible in Q1FY27 as customer capacity revamps and utilization improved.
Guidance & outlook
- Higher capacity utilization is expected to drive operating leverage and support margin expansion.
- Green boiler capacity is targeted to increase sevenfold from 15 TPH in FY26 to 105 TPH in FY27.
Expansion
- The company plans to establish additional nitrogen plants to meet growing industrial customer demand.
New initiatives
- The company is using existing customer relationships and pipeline infrastructure to cross-sell additional industrial gases and solutions.
Competition
- Steamhouse describes itself as India's only company supplying nitrogen through a dedicated pipeline network.
Problems & risks
- Chemical and pharmaceutical customers experienced subdued performance over the past few years.
What to watch
- Whether operating margin recovers from 19.28% toward the 24.05% recorded in Q1FY27.
- Whether interest expense falls from Rs 9.63 cr after rising 39.16% QoQ.
- Progress against management's stated green boiler capacity target of 105 TPH in FY27, versus 15 TPH in FY26.