Interest and depreciation leave BALPHARMA with Rs 1.14 cr profit
The 8.97% operating margin was largely absorbed by Rs 4.47 cr interest and Rs 2.78 cr depreciation in the consolidated quarter.
Filed 12 Aug 2026, 18:38 IST · after market close · BALPHARMA (BALPHARMA)
Key takeaways
- BALPHARMA's consolidated operating profit of Rs 7.95 cr translated into only Rs 1.14 cr of profit before tax after Rs 4.47 cr interest and Rs 2.78 cr depreciation.
- The 8.97% operating margin was not enough to absorb financing and depreciation charges, while other income contributed only Rs 0.44 cr.
- The company reported Rs 1.14 cr consolidated net profit with a zero tax rate, and the filing came after market close.
Operating profit did not carry through
The quarter's main conversion issue was below the operating line: Rs 7.95 cr of operating profit became only Rs 1.14 cr of profit before tax. This reflects the weight of Rs 4.47 cr interest and Rs 2.78 cr depreciation against operating earnings. The 8.97% operating margin therefore offered limited protection at the profit-before-tax level.
Profit quality was not supported by other income
Other income was only Rs 0.44 cr, so it did not materially offset the financing and depreciation burden. Net profit matched profit before tax at Rs 1.14 cr because the reported tax rate was 0.0%. The absence of a tax charge supported the reported conversion, but the larger constraint was the cost below operating profit.
After-close filing leaves the reaction open
The consolidated results were filed after market close, so there is no same-session stock response to assess. With no quarter-on-quarter or year-on-year comparison in this release, the key read-through is the low conversion of operating profit into pre-tax earnings.
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 | ₹89 cr |
| Other income | ₹0 cr |
| Expenses | ₹81 cr |
| Operating profit | ₹8 cr |
| Operating margin (%) | 8.97% |
| Interest | ₹4 cr |
| Depreciation | ₹3 cr |
| Profit before tax | ₹1 cr |
| Tax | ₹0 cr |
| Net profit | ₹1 cr |
| EPS (₹) | ₹0.71 |
What to watch
- Whether operating margin moves above or below 8.97%.
- Whether interest of Rs 4.47 cr and depreciation of Rs 2.78 cr continue to absorb most operating profit.
- Whether profit before tax remains close to Rs 1.14 cr under a 0.0% tax rate.