Sundrex Oil (SOCL) Q2 FY27 Profit Jumps 59% Despite a Sharp Drop in Sales
Sundrex Oil's Q2 FY27 profit surged 59% year-on-year, but revenue fell 39% sequentially as a large trading deal from the prior quarter was not repeated.
Sundrex Oil's September quarter profit rose sharply to ₹3.84 crore, driven by lower interest costs and disciplined spending. Revenue, however, fell sharply from the March quarter's high, highlighting a volatile sales pattern.
For an industrial oils and lubricants maker, quarterly sales can swing with large trading deals. Sundrex Oil's September quarter shows that dynamic at work, with profit surging on much lower revenue as a one-off boost from the prior period faded.
The numbers tell a split story. Profit jumped 59% year-on-year to ₹3.84 crore, but revenue fell 39% from the March quarter to ₹44.29 crore. The net profit margin expanded sharply to 8.7%, up from 4.3% last quarter.
Revenue & profit
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin
| Metric | CurrentQ2 FY27 (Sep 2026) | PreviousQ4 FY26 (Mar 2026) |
|---|---|---|
| Revenue (₹ Cr) | 44.29 | 72.25 |
| Profit (₹ Cr) | 3.84 | 3.09 |
| Net Profit Margin | 8.7% | 4.3% |
Why profit rose as sales fell
Profitability improved because costs fell faster than revenue. Total expenses dropped 43% sequentially, with interest costs down 42%. Data from newboard.in shows the company's interest coverage ratio is a healthy 4.2 times.
Employee costs rose 31% quarter-on-quarter, but this was more than offset by the broader expense decline. The result was a profit jump on a smaller revenue base, showcasing significant operating leverage this quarter.
The volatile top line
Revenue fell sharply from the ₹72.25 crore reported in the March 2026 quarter. While the company does not split segments, the scale of the drop suggests the prior quarter included a substantial, non-recurring trading deal that was not repeated.
Year-on-year, sales grew 15%, indicating the core manufacturing business remains on a growth path. The trailing-twelve-month revenue stands at ₹174.19 crore, with a net profit margin of 6.5%.
A challenging market backdrop
The broader environment is mixed. A report from Base Oil News notes India's lubricants demand fell year-on-year in October, extending a decline through most of 2026. Rising domestic supply is meeting weaker demand.
Furthermore, ICRA analysis cited by The Economic Times says companies face broad-based cost pressures from the West Asia conflict, squeezing margins. Sundrex's ability to expand margins this quarter against that tide is notable.
Key Points
- Net profit surged 58.7% year-on-year to ₹3.84 crore, while revenue fell 38.7% sequentially./n- A 440 basis point expansion in net profit margin was driven by a 42% drop in interest costs and controlled overall expenses.
- The sharp sequential revenue decline highlights the impact of a large, likely non-recurring trading deal in the prior March quarter.
- The company trades at a P/E of 8.3, a significant discount to the industry average of 34.0.
Hexa Perspective
This quarter underscores Sundrex Oil's two-speed reality: a core manufacturing business growing steadily, overlaid with a trading arm that creates volatile quarterly sales. The margin expansion is encouraging and points to better financial discipline, particularly on interest costs.
The sustainability of this profit growth, however, hinges on stabilizing the top line. With industry demand soft and input costs volatile, the company's ability to generate consistent, high-margin sales from its manufacturing operations will be the true test in the coming quarters.
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