Sudarshan Colorants margin improves as Q2 revenue rises 21.30% QoQ
Revenue grew faster than expenses, lifting operating margin 1.27 percentage points; the stock rose 19.99% on the results day.
Filed 28 Oct 2026, 14:36 IST · Sudarshan Colorants India Ltd (SUDARCOLOR)
Key takeaways
- Standalone Q2FY27 revenue rose +21.30% QoQ, while operating margin widened 1.27 percentage points to 12.78%.
- Net profit increased +18.52% QoQ to Rs 24.13 cr even as other income contributed 10.79% of pre-tax profit.
- The stock gained +19.99% on the results day, while operating margin remained 1.85 percentage points below the 14.63% median for 35 reported Commodities peers.
Price around the results
Q2 revenue acceleration lifts operating leverage
Standalone revenue rose +21.30% QoQ, ahead of the +19.55% increase in expenses. Operating profit consequently grew +34.74%, showing operating leverage in the quarter. Profit before tax increased +19.05%, while net profit rose +18.52%.
Margin expanded despite lower other income
Operating margin improved by 1.27 percentage points to 12.78% because expenses grew more slowly than revenue. Other income fell -52.25% QoQ and still represented 10.79% of pre-tax profit, so reported earnings included a meaningful non-operating contribution. The tax rate increased by 0.33 percentage points, while interest rose +1.59% and depreciation fell -2.77%.
Margin remains below the Commodities peer median
The 12.78% operating margin was 1.85 percentage points below the 14.63% median for 35 Commodities companies that had reported the same quarter. It was nevertheless higher than the 11.51% recorded in Q1FY27, marking a sequential improvement rather than a sustained multi-quarter trend.
Results-day reaction was sharply positive
The stock rose +19.99% on 28 October, the results day, with volume at 40.74 times the reference level. The opening gap was +1.91%, and the relative move was +20.22%.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹270 cr | ₹222 cr | +21.30% |
| Other income | ₹4 cr | ₹7 cr | -52.25% |
| Expenses | ₹235 cr | ₹197 cr | +19.55% |
| Operating profit | ₹34 cr | ₹26 cr | +34.74% |
| Operating margin (%) | 12.78% | 11.51% | — |
| Interest | ₹1 cr | ₹1 cr | +1.59% |
| Depreciation | ₹5 cr | ₹5 cr | -2.77% |
| Profit before tax | ₹32 cr | ₹27 cr | +19.05% |
| Tax | ₹8 cr | ₹7 cr | +20.64% |
| Net profit | ₹24 cr | ₹20 cr | +18.52% |
| EPS (₹) | ₹10.45 | ₹8.82 | +18.48% |
Operating margin of 12.78% compares with a Commodities sector median of 14.63% across 35 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +19.99% | +20.22% |
Volume on the results session was 40.74× its 20-day average.
What to watch
- Whether operating margin holds above 12.78%.
- Whether expense growth remains below +21.30% revenue growth.
- Whether other income remains near 10.79% of pre-tax profit.