Thirumalai Chemicals narrows loss, but interest expense keeps earnings negative
Revenue growth outpaced expenses and lifted operating margin, but the sector gap remained wide and interest costs increased.
Filed 05 Nov 2026, 14:33 IST · Thirumalai Chemicals Ltd (TIRUMALCHM)
Key takeaways
- Consolidated operating margin improved 0.52 percentage points QoQ as revenue grew +9.11% and expenses grew +8.50%.
- The consolidated net loss narrowed +21.43% QoQ to Rs 34.31 cr, but interest expense rose +9.02% to Rs 56.66 cr.
- At 6.48%, operating margin was 6.37 percentage points below the 12.85% median for 126 reporting Commodities peers.
Price around the results
Revenue growth lifted operating performance
In consolidated results, revenue rose +9.11% QoQ to Rs 596.47 cr, while expenses increased at a slower +8.50% rate. That helped operating profit grow +18.73% and lifted operating margin by 0.52 percentage points to 6.48%. Pre-tax loss narrowed +22.84% to Rs 30.17 cr, but remained negative.
Higher interest costs limited the improvement
Interest expense increased +9.02% QoQ to Rs 56.66 cr, absorbing much of the operating-profit improvement. Other income of Rs 9.71 cr was not a profit-quality support, equating to -32.18% of pre-tax profit because pre-tax earnings remained negative. The reported tax rate moved down 2.03 percentage points to -13.72%, while the company still recorded a tax charge of Rs 4.14 cr.
Margin improved sequentially but lagged peers
Operating margin rose from 5.96% in Q1FY27 to 6.48% in Q2FY27, marking a sequential improvement rather than a further decline. Even so, it was 6.37 percentage points below the 12.85% median among 126 Commodities peers that had reported the quarter, placing Thirumalai Chemicals 26th from the bottom.
The stock reversed an opening gain
The stock opened +2.15% but ended -2.39% on the results date, with a relative return of -4.80%. Trading volume was 3.94 times the reference level, indicating a heavier-than-usual market response on the day.
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 | ₹596 cr | ₹547 cr | +9.11% |
| Other income | ₹10 cr | ₹3 cr | +195.14% |
| Expenses | ₹558 cr | ₹514 cr | +8.50% |
| Operating profit | ₹39 cr | ₹33 cr | +18.73% |
| Operating margin (%) | 6.48% | 5.96% | — |
| Interest | ₹57 cr | ₹52 cr | +9.02% |
| Depreciation | ₹22 cr | ₹23 cr | -4.78% |
| Profit before tax | ₹-30 cr | ₹-39 cr | +22.84% |
| Tax | ₹4 cr | ₹5 cr | -9.41% |
| Net profit | ₹-34 cr | ₹-44 cr | +21.43% |
| EPS (₹) | ₹-2.85 | ₹-3.62 | +21.27% |
Operating margin of 6.48% compares with a Commodities sector median of 12.85% across 126 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -2.39% | -4.80% |
Volume on the results session was 3.94× its 20-day average.
What to watch
- Whether operating margin holds above 6.48% while expense growth remains below revenue growth of +9.11%.
- Whether interest expense moves down from Rs 56.66 cr after rising +9.02% QoQ.
- Whether the net loss narrows from Rs 34.31 cr without a larger contribution from Rs 9.71 cr of other income.