Savita Oil (SOTL) Q2 FY27 Profit Drops 26% Despite Surging Revenue
Revenue jumped 59% year-on-year, but profit fell sequentially as material costs and lower other income squeezed margins.
Savita Oil Technologies posted a 59% YoY revenue surge in Q2 FY27, yet profit fell 26% from the previous quarter. The drop highlights margin pressure from rising input costs and a sharp decline in other income.
For Savita Oil Technologies, the September quarter was a story of two very different comparisons. The specialty chemicals maker saw its core petroleum products business roar ahead, but the bottom line told a more complicated tale.
Revenue reached ₹1,709 crore, a 59% leap from last year and a 15.5% gain from the June quarter. Profit, however, fell 26% sequentially to ₹212 crore, even as it soared over 400% year-on-year. The net profit margin compressed sharply to 12.4% from 19.5% in Q1.
Revenue & profit
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ2 FY27 (Sep 2026) | PreviousQ1 FY27 (Jun 2026) |
|---|---|---|
| Revenue (₹ Cr) | 1,709.0 | 1,479.8 |
| Profit (₹ Cr) | 212.0 | 288.1 |
| Net Profit Margin (%) | 12.4 | 19.5 |
The cost surge behind the margin squeeze
Nearly all the revenue growth came from the petroleum products segment, according to a Multibagg.ai report. But material costs rose in lockstep with sales, up 56% year-on-year to ₹1,320 crore. Total expenses jumped 27% from the prior quarter.
This cost pressure, combined with a steep drop in other income, explains the profit dip. Other income collapsed 85% sequentially to just ₹5 crore, as reported by ScanX.trade. The prior quarter’s profit was flattered by this one-off boost.
A supportive but volatile backdrop
Management’s outlook, noted in a StockFin.ai analysis, remains focused on high-growth sectors like data centers and electric vehicles. The company’s official presentation expects EBITDA margins to stay in a 17-20% range.
The broader refining environment is supportive. The Economic Times reports Indian refiners expect healthy margins due to global supply disruptions. This tight market aids pricing for Savita Oil’s specialty products.
Key Points
- Revenue growth remained robust, driven entirely by the core petroleum products segment./n- Sequential profit decline was driven by a sharp rise in material costs and an 85% drop in other income.
- Management is targeting high-margin specialty segments and expects core EBITDA margins to remain elevated.
Hexa Perspective
The quarter confirms strong underlying demand but also exposes vulnerability to input costs. The core business is healthy, with margins still far above last year's levels.
The path ahead hinges on whether product pricing can outpace raw material inflation. With the company debt-free and trading at a discount to the industry PE, the market seems to be weighing this cost-pressure risk against a solid growth runway.
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