Vital Chemtech margin falls 3.27 points as costs outpace revenue
A negative tax rate cushioned net profit, while other income made up 44.49% of pre-tax profit; the consolidated results were filed after market close.
Filed 02 Nov 2026, 17:42 IST · after market close · Vital Chemtech Ltd (VITAL)
Key takeaways
- Consolidated operating margin fell 3.27 percentage points QoQ to 8.63% as expenses rose 1.26% while revenue declined 2.36%.
- Net profit slipped 1.93% QoQ to Rs 2.54 cr, cushioned by a -3.82% tax rate and other income equal to 44.49% of pre-tax profit.
- Vital Chemtech's 8.63% operating margin was 6.00 percentage points below the 14.63% median for 75 reported commodities peers.
Price around the results
Costs cut into Q2 operating margin
Revenue declined 2.36% QoQ to Rs 49.98 cr, but expenses increased 1.26% to Rs 45.67 cr, causing operating profit to fall 29.23% to Rs 4.31 cr. This pushed operating margin down 3.27 percentage points to 8.63%. Interest expense also rose 15.00% QoQ, adding pressure below the operating line.
Tax and other income cushioned earnings
Profit before tax fell 28.57% QoQ, while net profit declined only 1.93% because the tax rate moved from 24.59% to -3.82%. Other income rose to Rs 1.09 cr and accounted for 44.49% of pre-tax profit. That makes the quarter's net profit less reflective of operating performance.
Margin trails commodities peer median
Vital Chemtech's 8.63% operating margin was 6.00 percentage points below the 14.63% median among 75 commodities peers that had reported. The consolidated results were filed on 02 Nov 2026 at 17:42 IST, after market close.
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 | ₹50 cr | ₹51 cr | -2.36% |
| Other income | ₹1 cr | ₹0 cr | +738.46% |
| Expenses | ₹46 cr | ₹45 cr | +1.26% |
| Operating profit | ₹4 cr | ₹6 cr | -29.23% |
| Operating margin (%) | 8.63% | 11.90% | — |
| Interest | ₹1 cr | ₹1 cr | +15.00% |
| Depreciation | ₹2 cr | ₹2 cr | +1.12% |
| Profit before tax | ₹2 cr | ₹3 cr | -28.57% |
| Tax | ₹-0 cr | ₹1 cr | — |
| Net profit | ₹3 cr | ₹3 cr | -1.93% |
| EPS (₹) | ₹1.06 | ₹1.08 | -1.85% |
Operating margin of 8.63% compares with a Commodities sector median of 14.63% across 75 peers that have reported Q2FY27.
What to watch
- Whether operating margin recovers from 8.63% after the 3.27-point QoQ decline.
- Whether expenses stop growing faster than revenue, after +1.26% versus -2.36% QoQ.
- Whether net profit remains supported by the -3.82% tax rate and other income's 44.49% share of pre-tax profit.