TruAlt margin drops 8.71 points as costs outrun revenue
Revenue rose 29.39% QoQ, but net profit fell 40.97% as expenses grew 43.68% and other income supplied 26.84% of pre-tax profit.
Filed 23 Oct 2026, 19:48 IST · after market close · TruAlt Bioenergy Ltd (TRUALT)
Key takeaways
- Revenue grew 29.39% QoQ, but expenses grew 43.68%, cutting operating margin by 8.71 percentage points to 12.47%.
- Other income contributed 26.84% of pre-tax profit, while the 25.68% tax rate rose 1.24 percentage points as net profit fell 40.97% QoQ.
- TruAlt's 12.47% operating margin was 3.71 percentage points below the 16.18% median for nine reported sector peers.
Price around the results
Revenue growth did not translate into profit growth
On a consolidated basis, revenue increased 29.39% QoQ, but operating profit fell 23.80% as costs absorbed the incremental sales. Net profit declined 40.97% and EPS fell 39.43%, showing weaker conversion from revenue to earnings.
Higher costs drove the margin compression
Interest fell 3.54% and depreciation fell 2.26%, but those reductions were not enough to offset the cost increase. Other income fell 12.95% yet still represented 26.84% of pre-tax profit, while the tax rate rose 1.24 percentage points to 25.68%.
Margin fell after a Q1 peak and lagged peers
Operating margin rose from 19.94% in Q4FY26 to 21.18% in Q1FY27 before dropping to 12.47% in Q2FY27. The latest margin was 3.71 percentage points below the 16.18% median among nine Fast Moving Consumer Goods peers that had reported, placing TruAlt fourth from the bottom.
Management linked the next phase to feedstock and capacity
Management said dual-feed flexibility and dependable grain availability would be central to meeting ESY 2026–27 demand. The presentation said CBG plant commissioning at Mudhol was targeted for November 2026, while Kedarnath and Badami were targeted for December 2026.
The filing came after market close
The consolidated results were filed after market close on 23 October 2026. The immediate stock response is therefore not part of this readout.
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 | ₹811 cr | ₹627 cr | +29.39% |
| Other income | ₹13 cr | ₹15 cr | -12.95% |
| Expenses | ₹710 cr | ₹494 cr | +43.68% |
| Operating profit | ₹101 cr | ₹133 cr | -23.80% |
| Operating margin (%) | 12.47% | 21.18% | — |
| Interest | ₹42 cr | ₹44 cr | -3.54% |
| Depreciation | ₹24 cr | ₹25 cr | -2.26% |
| Profit before tax | ₹47 cr | ₹78 cr | -39.97% |
| Tax | ₹12 cr | ₹19 cr | -36.93% |
| Net profit | ₹35 cr | ₹59 cr | -40.97% |
| EPS (₹) | ₹4.04 | ₹6.67 | -39.43% |
Operating margin of 12.47% compares with a Fast Moving Consumer Goods sector median of 16.18% across 9 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.
Guidance & outlook
- The company expects dual-feed flexibility and dependable grain availability to be central to meeting ESY 2026–27 demand.
Expansion
- CBG plant commissioning at Mudhol is targeted for November 2026.
- CBG plant commissioning at Kedarnath is targeted for December 2026.
- CBG plant commissioning at Badami is targeted for December 2026.
What to watch
- Whether operating margin moves up from 12.47% after the 8.71 percentage-point QoQ decline.
- Whether expense growth falls below the current 43.68% against revenue growth of 29.39%.
- Whether the Mudhol, Kedarnath and Badami commissioning targets remain November 2026 and December 2026, respectively.