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 net profit was Rs 1.02 cr, despite profit before tax of only Rs 0.52 cr, because the tax line was a credit of Rs 0.51 cr.
- Operating profit of Rs 1.33 cr was lower than interest expense of Rs 1.67 cr, leaving limited earnings coverage before tax.
- Revenue was Rs 44.63 cr and operating margin was 2.97%, with no year-on-year or sequential comparison available for this quarter.
Tax credit drove the reported profit
Aarey Drugs reported standalone net profit of Rs 1.02 cr against profit before tax of Rs 0.52 cr. The tax rate was -98.55%, reflecting a tax credit of Rs 0.51 cr rather than a tax charge. This makes the reported profit materially dependent on the tax line.
Interest exceeded operating profit
Revenue was Rs 44.63 cr, while expenses were Rs 43.30 cr, leaving operating profit of Rs 1.33 cr and an operating margin of 2.97%. Interest expense of Rs 1.67 cr exceeded operating profit, while depreciation was Rs 0.85 cr. Other income of Rs 1.72 cr also supported profit before tax, so operating earnings alone did not cover the non-operating charges.
No market reaction or trend signal yet
The company filed these standalone results after market close on 14 Aug 2026, so there is no reported stock-market reaction yet. There is also no year-on-year or sequential comparison in the reported data, and the trend record does not establish a multi-quarter direction.
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 rises above interest expense of Rs 1.67 cr.
- Whether the tax line remains a credit rather than a charge after the Rs 0.51 cr benefit this quarter.
- Whether operating margin moves above the current 2.97%.