AKASH's thin operating margin leaves little room after interest and tax
Consolidated operating profit was Rs 1.43 cr, but Rs 0.94 cr of interest and a 46.73% tax rate sharply limited net profit.
Filed 14 Aug 2026, 13:31 IST · AKASH (AKASH)
Key takeaways
- AKASH's consolidated operating profit of Rs 1.43 cr on Rs 39.14 cr revenue left operating margin at just 3.65%.
- Interest of Rs 0.94 cr was more than twice profit before tax of Rs 0.36 cr, constraining earnings conversion.
- A 46.73% tax rate reduced net profit to Rs 0.19 cr, with EPS at Rs 0.11.
Low operating cushion in Q1FY27
AKASH reported consolidated revenue of Rs 39.14 cr and operating profit of Rs 1.43 cr, leaving only a 3.65% operating margin. That limited operating cushion translated into profit before tax of Rs 0.36 cr and net profit of Rs 0.19 cr.
Interest and tax absorbed much of the operating profit
Interest expense was Rs 0.94 cr, leaving a narrow gap between operating profit and profit before tax after depreciation and other charges. The 46.73% tax rate further reduced the amount of pre-tax profit retained, resulting in EPS of Rs 0.11.
No sequential, annual or market-reaction comparison
The quarter has no reported year-on-year or sequential comparison, so the direction of revenue and margin cannot be established from this release. There is also no post-results stock reaction or company-specific history to place the market response in context.
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 | ₹39 cr |
| Other income | ₹0 cr |
| Expenses | ₹38 cr |
| Operating profit | ₹1 cr |
| Operating margin (%) | 3.65% |
| Interest | ₹1 cr |
| Depreciation | ₹0 cr |
| Profit before tax | ₹0 cr |
| Tax | ₹0 cr |
| Net profit | ₹0 cr |
| EPS (₹) | ₹0.11 |
What to watch
- Whether operating margin moves from the Q1FY27 level of 3.65%.
- Whether interest expense remains near Rs 0.94 cr as operating profit changes.
- Whether the tax rate moves from 46.73% and improves conversion of profit before tax into net profit.