Tax credit lifted Aarey Drugs' standalone profit above pre-tax earnings
The Rs 0.51 cr tax credit more than offset the burden from Rs 1.67 cr of interest on Rs 1.33 cr of operating profit.
Filed 14 Aug 2026, 20:31 IST · after market close · AAREYDRUGS (AAREYDRUGS)
Key takeaways
- Standalone Q1FY27 operating profit of Rs 1.33 cr was lower than interest expense of Rs 1.67 cr, leaving little operating cover for financing costs.
- Other income of Rs 1.72 cr exceeded profit before tax of Rs 0.52 cr, making reported earnings highly dependent on non-operating income.
- A negative tax rate of -98.55% lifted net profit to Rs 1.02 cr despite profit before tax of only Rs 0.52 cr.
Thin operating surplus in standalone Q1FY27
Revenue of Rs 44.63 cr produced operating profit of only Rs 1.33 cr, leaving a narrow buffer before financing and depreciation costs. Interest expense of Rs 1.67 cr was higher than operating profit, while depreciation added Rs 0.85 cr of cost before profit before tax reached Rs 0.52 cr.
Reported profit was supported outside operations
Other income of Rs 1.72 cr was more than three times profit before tax of Rs 0.52 cr, so the quarter's pre-tax result was not driven mainly by operations. The -98.55% tax rate also indicates a tax credit or benefit that lifted net profit to Rs 1.02 cr, above profit before tax.
Results filed after market close
The standalone results were filed on 14 August 2026 at 20:31 IST, after market close. There is no post-results market reaction to assess yet, and no year-on-year or sequential comparison is provided for this quarter.
Q1FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹45 cr |
| Other income | ₹2 cr |
| Expenses | ₹43 cr |
| Operating profit | ₹1 cr |
| Operating margin (%) | 2.97% |
| Interest | ₹2 cr |
| Depreciation | ₹1 cr |
| Profit before tax | ₹1 cr |
| Tax | ₹-1 cr |
| Net profit | ₹1 cr |
| EPS (₹) | ₹0.36 |
What to watch
- Whether operating profit stays above the Rs 1.33 cr reported in Q1FY27.
- Whether interest expense remains below or above the Rs 1.67 cr reported this quarter.
- Whether net profit continues to exceed profit before tax of Rs 0.52 cr because of tax effects or other income.