Other income forms a large part of ASMS's Q1FY27 pre-tax profit
Standalone operating margin was 5.94%, while Rs 0.87 cr of other income supported reported profit before tax of Rs 1.23 cr.
Filed 07 Sep 2026, 12:55 IST · Avio Smart Market Stack Limited (ASMS)
Key takeaways
- Standalone revenue fell 65.19% sequentially to Rs 11.97 cr, while operating margin narrowed 0.80 percentage points to 5.94%.
- Other income accounted for 70.73% of profit before tax, making the Rs 1.51 cr net profit less dependent on operating earnings.
- The stock fell 3.05% by the fifth trading day and 11.22% by day 30 after the result anchor.
Price around the results
Q1 revenue drop cut operating profit by 69.40%
Avio Smart Market Stack reported standalone revenue of Rs 11.97 cr in Q1FY27, down 65.19% sequentially, and operating profit fell 69.40% to Rs 0.71 cr. Net profit declined 27.75% to Rs 1.51 cr, a smaller fall because other income more than doubled to Rs 0.87 cr. There is no year-on-year comparison in the reported data.
Costs outpaced the revenue decline and interest surged
Expenses fell 64.89%, slightly less than revenue, so costs grew faster on a sequential basis and operating margin narrowed by 0.80 percentage points. Interest expense rose 285.71% and depreciation increased 60.00%, adding pressure below operating profit. The tax rate fell 2.07 percentage points to 18.13%, also cushioning the decline in reported profit.
Operating margin sits below the IT peer median
The company's 5.94% operating margin was 9.26 percentage points below the 15.20% median for 92 Information Technology peers that had reported the quarter. Avio Smart Market Stack ranked 18th from the bottom on this measure. The sequential margin decline followed the 6.74% margin reported in Q4FY26.
The stock decline deepened after the result anchor
The decline reached 11.22% by day 30, while day-0 volume was 2.21 times the reference level.
Q1FY27 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹12 cr | ₹34 cr | -65.19% |
| Other income | ₹1 cr | ₹0 cr | +107.14% |
| Expenses | ₹11 cr | ₹32 cr | -64.89% |
| Operating profit | ₹1 cr | ₹2 cr | -69.40% |
| Operating margin (%) | 5.94% | 6.74% | — |
| Interest | ₹0 cr | ₹0 cr | +285.71% |
| Depreciation | ₹0 cr | ₹0 cr | +60.00% |
| Profit before tax | ₹1 cr | ₹3 cr | -53.05% |
| Tax | ₹0 cr | ₹1 cr | -58.49% |
| Net profit | ₹2 cr | ₹2 cr | -27.75% |
| EPS (₹) | ₹0.05 | ₹0.07 | -28.57% |
Operating margin of 5.94% compares with a Information Technology sector median of 15.20% across 92 peers that have reported Q1FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -2.63% | -2.47% |
| Next session | -2.35% | — |
| 5 sessions | -3.05% | -2.21% |
| 15 sessions | -1.52% | — |
| 30 sessions | -11.22% | — |
Volume on the results session was 2.21× its 20-day average.
What to watch
- Whether revenue recovers from Rs 11.97 cr in the next reported quarter.
- Whether operating margin moves back above 5.94%.
- Whether other income's 70.73% share of profit before tax declines.