Costs outpaced revenue growth, cutting Tamil Nadu Petro's margin
Consolidated revenue rose 20.11% sequentially, but operating margin fell 4.26 percentage points and net profit declined 18.82%.
Filed 02 Nov 2026, 19:41 IST · after market close · Tamil Nadu Petro Products Ltd (TNPETRO)
Key takeaways
- Consolidated revenue grew 20.11% quarter on quarter, but expenses grew faster at 26.16%, pulling operating margin down 4.26 percentage points.
- Net profit fell 18.82% sequentially as the tax rate rose 1.51 percentage points, while other income contributed 8.48% of pre-tax profit.
- The 11.19% operating margin was 3.44 percentage points below the 14.63% median for 75 reported commodities-sector peers.
Price around the results
Revenue growth did not reach operating profit
Tamil Nadu Petro Products reported consolidated revenue growth of 20.11% quarter on quarter in Q2FY27, but operating profit declined 12.98%. The gap came from expenses, which increased 26.16%, faster than revenue. That mismatch reduced operating margin to 11.19% from 15.45% in Q1FY27.
Lower interest could not offset cost pressure
Interest expense fell 25.46% sequentially, but depreciation rose 38.24%, while the faster increase in expenses compressed operating profitability. The tax rate increased to 25.98% from 24.47%, adding to the 18.82% decline in net profit. Other income accounted for 8.48% of pre-tax profit, so reported profit also included a meaningful non-operating contribution.
Margin lagged the commodities peer median
The company's 11.19% operating margin was below the 14.63% median among 75 commodities-sector peers that had reported the same quarter, a gap of 3.44 percentage points. Sequentially, this was a further decline from 15.45%, extending the margin deterioration from the previous quarter.
Results were filed after market close
The consolidated results were filed after market close on 02 Nov 2026. There is no post-results market reaction to assess in this report.
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 | ₹937 cr | ₹780 cr | +20.11% |
| Other income | ₹7 cr | ₹7 cr | +11.03% |
| Expenses | ₹832 cr | ₹660 cr | +26.16% |
| Operating profit | ₹105 cr | ₹121 cr | -12.98% |
| Operating margin (%) | 11.19% | 15.45% | — |
| Interest | ₹6 cr | ₹8 cr | -25.46% |
| Depreciation | ₹19 cr | ₹14 cr | +38.24% |
| Profit before tax | ₹88 cr | ₹106 cr | -17.17% |
| Tax | ₹23 cr | ₹26 cr | -12.06% |
| Net profit | ₹65 cr | ₹80 cr | -18.82% |
| EPS (₹) | ₹7.23 | ₹8.90 | -18.76% |
Operating margin of 11.19% compares with a Commodities sector median of 14.63% across 75 peers that have reported Q2FY27.
What to watch
- Whether operating margin recovers from 11.19% after the 4.26 percentage-point sequential decline.
- Whether expense growth remains above revenue growth after 26.16% versus 20.11% sequentially.
- Whether other income's 8.48% contribution to pre-tax profit changes.