Interest, depreciation and tax weighed on Advent’s Q1 profit conversion
Operating profit reached Rs 26.28 cr, but interest of Rs 10.15 cr and a 40.68% tax rate left consolidated net profit at Rs 6.75 cr.
Filed 06 Aug 2026, 18:30 IST · after market close · ADVENTHTL (ADVENTHTL)
Key takeaways
- Consolidated operating profit of Rs 26.28 cr did not translate into comparable pre-tax profit because interest and depreciation absorbed much of it.
- The 40.68% tax rate further reduced profit conversion, leaving net profit at Rs 6.75 cr.
- Other income of Rs 2.28 cr supplemented pre-tax profit of Rs 11.37 cr, making the quarter's earnings mix worth monitoring.
Q1FY27 profit conversion
Advent reported consolidated operating profit of Rs 26.28 cr on revenue of Rs 80.52 cr, but profit before tax was Rs 11.37 cr. Interest of Rs 10.15 cr and depreciation of Rs 7.04 cr were the main deductions between operating profit and pre-tax profit. The results were filed after market close.
Tax and other income shaped reported earnings
The 40.68% tax rate placed another significant drag on earnings after the financing and depreciation charges. Other income of Rs 2.28 cr supplemented pre-tax profit, so reported net profit also reflects a non-operating contribution. Net profit was Rs 6.75 cr and basic EPS was Rs 1.14.
No sequential or year-on-year read yet
There is no sequential or year-on-year comparison in the reported figures, and no multi-quarter trend is available to establish whether margins or profit conversion are improving or weakening. The next comparison will be important for assessing whether the current operating margin of 32.64% is sustained.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹81 cr |
| Other income | ₹2 cr |
| Expenses | ₹54 cr |
| Operating profit | ₹26 cr |
| Operating margin (%) | 32.64% |
| Interest | ₹10 cr |
| Depreciation | ₹7 cr |
| Profit before tax | ₹11 cr |
| Tax | ₹5 cr |
| Net profit | ₹7 cr |
| EPS (₹) | ₹1.14 |
What to watch
- Whether operating margin holds above 32.64%.
- Whether interest remains below Rs 10.15 cr.
- Whether the tax rate moves down from 40.68%.