INDORAMAIndo Rama Synthetics (India) Ltd

Indo Rama Synthetics Q2 FY27 Results: Consolidated Net Profit ₹74.08 Crore on Total Income of ₹1,344 Crore

Earnings
Textiles Synthetic

Blacklitt Research16 October 20263 min read

A cotton mill spinning room with long rows of machines, in an old photograph — Art Photo Greeting Co., via Wikimedia Commons (public domain). Illustrative image.

Indo Rama Synthetics reported consolidated total income of ₹1,344.04 crore and net profit of ₹74.08 crore for the quarter ended 30 Sep 2026. Standalone total income was ₹1,254.15 crore and net profit was ₹55.05 crore.

Key highlights

Consolidated

Including its subsidiaries

Total income: ₹1,344 crore, up 10.0% YoY, up 43.0% QoQ
Net profit: ₹74.08 crore, up 201.8% YoY, up 16.2% QoQ
EPS: ₹2.84, against ₹0.94 in Q2 FY26
Operating profit before depreciation, finance costs and forex: ₹117.66 crore, up 46.4% YoY

Standalone

The company on its own, without its subsidiaries

Total income: ₹1,254 crore, up 7.2% YoY, up 52.1% QoQ
Net profit: ₹55.05 crore, up 138.9% YoY, up 63.1% QoQ
EPS: ₹2.11, against ₹0.88 in Q2 FY26
Finance costs: ₹25.65 crore, down 10.8% YoY

Summary

Consolidated ₹ crore
Particulars	Q2 FY27	Q2 FY26	YoY	Q1 FY27	QoQ
	1,344.04	1,222.35	+10.0%	940.20	+43.0%
Revenue from operations	1,340.64	1,220.64	+9.8%	936.64	+43.1%
Other income	3.40	1.71	+98.8%	3.56	-4.5%
	74.08	24.55	+201.8%	63.74	+16.2%
Finance costs	28.99	33.57	-13.6%	29.38	-1.3%
Depreciation	12.30	11.98	+2.7%	12.01	+2.4%
Tax expense	-0.22	0.00	n/a	0.00	n/a
Net profit margin	5.51%	2.01%	+3.50 pp	6.78%	-1.27 pp
EPS, basic (₹)	2.84	0.94	+202.1%	2.44	+16.4%

Figures are in ₹ crore; YoY compares with Q2 FY26 and QoQ with Q1 FY27. Click Total income or Net profit to see the rows behind them.

Profit tripled on a 10% rise in revenue, and most of it is operating profit. Net profit rose to ₹74.08 crore from ₹24.55 crore. The filing's operating profit before depreciation, finance costs and foreign exchange fluctuation was ₹117.66 crore against ₹80.38 crore, a rise of about ₹37 crore, which is roughly 31 paise for each extra rupee of revenue (derived). Lower finance costs added about ₹4.6 crore (₹28.99 crore from ₹33.57 crore) and a smaller foreign exchange loss about ₹7.8 crore (₹2.51 crore from ₹10.28 crore), so about ₹37 crore, ₹5 crore and ₹8 crore account for the ₹49.5 crore increase in profit (derived).

Operating margin improved to about 8.8% of revenue from about 6.6% (derived), and the net margin to 5.51% from 2.01%. Tax is nil (a credit of ₹0.22 crore against none), so profit is not being reduced by tax; the filing does not say why.

The June quarter was the weak one. Revenue rose 43.1% from ₹936.64 crore in Q1 FY27 and net profit 16.2% from ₹63.74 crore. For H1 FY27 revenue from operations is ₹2,277.28 crore, down 9.9% from ₹2,526.35 crore, while net profit is ₹137.82 crore against ₹77.30 crore, up 78.3%: the half has less revenue and more profit than a year ago.

Standalone ₹ crore
Particulars	Q2 FY27	Q2 FY26	YoY	Q1 FY27	QoQ
	1,254.15	1,169.93	+7.2%	824.76	+52.1%
Revenue from operations	1,248.33	1,166.29	+7.0%	817.91	+52.6%
Other income	5.82	3.64	+59.9%	6.85	-15.0%
	55.05	23.04	+138.9%	33.75	+63.1%
Finance costs	25.65	28.74	-10.8%	25.79	-0.5%
Depreciation	9.87	9.59	+2.9%	9.63	+2.5%
Tax expense	0.00	0.00	n/a	0.00	n/a
Net profit margin	4.39%	1.97%	+2.42 pp	4.09%	+0.30 pp
Tax as share of profit before tax	0.0%	0.0%	+0.00 pp	0.0%	+0.00 pp
EPS, basic (₹)	2.11	0.88	+139.8%	1.29	+63.6%

Figures are in ₹ crore; YoY compares with Q2 FY26 and QoQ with Q1 FY27. Click Total income or Net profit to see the rows behind them.

The standalone company is about 93% of group revenue (derived) and earns most of the profit: net profit of ₹55.05 crore, up 138.9%, on revenue of ₹1,248.33 crore, up 7.0%, with finance costs down 10.8% to ₹25.65 crore and no tax. The subsidiaries add about ₹92 crore of revenue and about ₹19 crore of profit (derived), a much higher margin than the parent's 4.39%.

The company operates in one reportable segment, manufacturing and trading of polyester products. Cash flow from operations for the half is ₹216.54 crore against ₹46.79 crore.

Inference

Indo Rama's profit rise is a margin story: a larger operating profit per rupee of revenue plus lower interest and foreign exchange costs, on revenue growth of 10%. The filing gives no volume or price split, so it is not clear whether margins widened on spreads or on cost.

The nil tax charge adds to profit, and the filing does not say whether it will continue.

Reference: Original filing (PDF)

Sign up to continue reading

Create a free account to read the rest of this article and the analysis that follows.

Disclaimer:

The information available on this article is provided for education and informational purposes only. It does not constitute or provide financial, investment or trading advice and should not be construed as an endorsement of any specific stock or financial strategy in any form or manner. We do not make any representations or warranties regarding the quality, reliability, or accuracy of the information provided. This website may contain links to third-party content. We are not responsible for the content or accuracy of these external sources and do not endorse or verify the information provided by third parties. We are not liable for any decisions made or actions taken based on the information provided on this website.