3M India Q2 margins contract as shares tumble

3M India reported a mixed Q2FY26 performance, with revenue rising 14.7% year on year to ₹1,452 crore from ₹1,266 crore. However, EBITDA fell 12.9% to ₹223 crore from ₹256 crore, while standalone net profit declined 17% to ₹158 crore from ₹191 crore. Shares fell as much as 11% after the update, according to Moneycontrol.com. 📉

The key pressure was on operating profitability. EBITDA margin 15.36% contracted from 20.20% a year earlier, a decline of 4.84 percentage points. Management attributed the deterioration to Indian Rupee depreciation and higher input costs linked to the Middle East crisis. The result shows that revenue growth is not translating into earnings growth when imported inputs and raw-material expenses rise faster than sales. 💼

For the manufacturing and industrial-products segment, the margin squeeze keeps currency movements, input prices and the company’s ability to pass on higher costs central to the earnings outlook. The weaker profit performance can also affect how the market values the company’s revenue growth, particularly while cost inflation remains visible.

OI Charts data, as of 05 Nov 2026, showed the stock closing at ₹29,325, up 1.7% on the day, with volume of 8,879. The stock was up 1.4% over five sessions but down 3.5% over 20 sessions. It remained close to the lower end of its 52-week range of ₹28,505 to ₹38,030; the 52-week low was recorded on 29 Oct 2026 and the high on 10 Feb 2026. The Moneycontrol-reported decline reflects the subsequent market reaction, while the OI Charts figures are for the prior session.

Traders will watch the next quarterly commentary for evidence of margin stabilisation, the pace of input-cost inflation and the effect of currency movements. Price action around ₹28,505, the recent 52-week low, will show whether the market continues to focus on weaker earnings quality despite topline growth.

Source: Moneycontrol.com and scanx.trade, 06 Nov 2026

Not investment advice. For informational purposes only.