Costs outpaced revenue, cutting operating margin by 31.94 points
Other income was 110.00% of pre-tax profit, while the tax rate fell 51.04 percentage points sequentially.
Filed 04 Nov 2026, 16:54 IST · after market close · Tainwala Chemicals & Plastics (India) Ltd (TAINWALCHM)
Key takeaways
- Standalone operating margin fell 31.94 percentage points quarter on quarter to -28.47% as expenses grew 60.87% against 21.05% revenue growth.
- Other income contributed 110.00% of profit before tax, leaving reported net profit dependent on non-operating income.
- The company placed at the bottom among 143 Industrials peers, with a -28.47% operating margin versus the 12.24% median.
Price around the results
Revenue growth did not cover the cost increase
In the standalone Q2FY27 results, revenue rose 21.05% sequentially, but expenses increased 60.87%. That cost mismatch turned the prior quarter's operating profit into an operating loss and pushed operating margin from 3.47% to -28.47%.
Reported profit came from other income
Other income accounted for 110.00% of profit before tax, more than offsetting the operating loss. The tax rate also fell 51.04 percentage points from 58.14% to 7.10%, which further supported the sequential increase in net profit and EPS.
Operating margin was weakest among 143 reported peers
Tainwala Chemicals' -28.47% operating margin was 40.71 percentage points below the 12.24% Industrials median. It ranked 1st from the bottom among the 143 sector peers that had reported the quarter, making the sequential reversal from a 3.47% margin especially pronounced.
Results were filed after market close
The standalone results were filed after market close on 04 Nov 2026. The stock's post-results reaction is therefore not assessed here.
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 | ₹1 cr | ₹1 cr | +21.05% |
| Other income | ₹4 cr | ₹0 cr | +5125.00% |
| Expenses | ₹1 cr | ₹1 cr | +60.87% |
| Operating profit | ₹-0 cr | ₹0 cr | — |
| Operating margin (%) | -28.47% | 3.47% | — |
| Interest | ₹0 cr | ₹0 cr | — |
| Depreciation | ₹0 cr | ₹0 cr | +20.00% |
| Profit before tax | ₹4 cr | ₹0 cr | +6233.33% |
| Tax | ₹0 cr | ₹0 cr | +575.00% |
| Net profit | ₹4 cr | ₹0 cr | +11666.67% |
| EPS (₹) | ₹3.77 | ₹0.03 | +12466.67% |
Operating margin of -28.47% compares with a Industrials sector median of 12.24% across 143 peers that have reported Q2FY27.
What to watch
- Whether operating margin recovers from -28.47% next quarter.
- Whether expense growth remains above the 21.05% sequential revenue growth rate.
- Whether other income remains above 110.00% of profit before tax.