Revenue growth lifted margins, but other income dominated pre-tax profit
Costs grew slower than revenue and improved operating profit, but a 60.96% QoQ fall in other income pulled pre-tax profit down 37.40%.
Filed 04 Aug 2026, 18:41 IST · after market close · ADROITINFO (ADROITINFO)
Key takeaways
- Consolidated revenue rose 14.84% QoQ while expenses grew 10.14%, lifting operating margin by 3.90 percentage points to 7.36%.
- Net profit fell 7.35% QoQ even as the tax rate dropped 25.57 percentage points to 23.01%.
- Other income accounted for 89.02% of pre-tax profit, making reported earnings heavily dependent on non-operating income.
Revenue growth drove the operating-margin recovery
On a consolidated basis, revenue grew 14.84% QoQ, ahead of the 10.14% increase in expenses. That operating leverage lifted operating profit 146.67% and expanded operating margin by 3.90 percentage points to 7.36%.
Lower other income outweighed the tax benefit
Pre-tax profit declined 37.40% QoQ because other income fell 60.96%, despite the improvement in operating profit. Other income represented 89.02% of pre-tax profit in the quarter, while the 25.57-percentage-point reduction in the tax rate limited the decline in net profit to 7.35%.
Sequential improvement, but no year-on-year comparison
Against Q4FY26, the quarter showed better operating momentum but weaker reported profit because the non-operating contribution was lower. The available trend points to a quarter-on-quarter operating-margin recovery from 3.46% to 7.36%, rather than a multi-quarter direction. The consolidated results were filed after market close on 4 August 2026.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹15 cr | ₹13 cr | +14.84% |
| Other income | ₹1 cr | ₹2 cr | -60.96% |
| Expenses | ₹14 cr | ₹13 cr | +10.14% |
| Operating profit | ₹1 cr | ₹0 cr | +146.67% |
| Operating margin (%) | 7.36% | 3.46% | — |
| Interest | ₹0 cr | ₹0 cr | +0.00% |
| Depreciation | ₹1 cr | ₹1 cr | +1.85% |
| Profit before tax | ₹1 cr | ₹1 cr | -37.40% |
| Tax | ₹0 cr | ₹1 cr | -70.31% |
| Net profit | ₹1 cr | ₹1 cr | -7.35% |
| EPS (₹) | ₹0.12 | ₹0.12 | +0.00% |
What to watch
- Whether operating margin holds above 7.36% in the next quarter.
- Whether expenses continue to grow slower than revenue after the 10.14% versus 14.84% QoQ gap.
- Whether other income remains a large contributor after accounting for 89.02% of pre-tax profit.