BANKA posts Q1 loss despite operating profit
Interest of Rs 1.16 cr and depreciation of Rs 0.85 cr outweighed operating profit; management cited an Rs 82 cr unexecuted order book.
Filed 13 Aug 2026, 19:52 IST · after market close · BANKA (BANKA)
Key takeaways
- BANKA reported a consolidated Q1FY27 net loss of Rs 0.04 cr despite Rs 1.82 cr of operating profit, as interest and depreciation absorbed earnings.
- Management said the Rs 82 cr unexecuted order book provides multi-quarter revenue visibility after Rs 4.2 cr of Q1 bookings and Rs 16.2 cr of execution.
- The 17.22% operating margin did not prevent a Rs 0.09 cr pre-tax loss, while Rs 0.11 cr of other income provided limited support.
Interest and depreciation pushed operating profit into a loss
BANKA's consolidated operating profit was not enough to cover Rs 1.16 cr of interest and Rs 0.85 cr of depreciation, resulting in a Rs 0.09 cr pre-tax loss. The Rs 0.11 cr of other income was larger than the pre-tax loss in absolute terms, but did not offset the pressure from below-operating-line costs. A reported tax credit of Rs 0.05 cr left the company with a Rs 0.04 cr net loss and a 54.25% tax rate.
Order book provides the main revenue visibility
Management said Q1 revenue reflected positive order conversion at the start of the year, with Rs 4.2 cr of bookings against Rs 16.2 cr executed. It said the resulting Rs 82 cr unexecuted order book provides multi-quarter visibility to rebuild revenue through FY26-27. The company also said revenue from existing contracts is expected to be recognized over their 7–10-year tenure.
Megaliter Varunaa expands the project base
Management said the company expanded into Bangalore and Mumbai through projects with Brigade, Reliance and RMZ, and won an order from Auro Infra in Hyderabad. It said Megaliter Varunaa had 15 projects and 11.7 MLD of treatment capacity by mid-2026, with one additional project at the letter-of-intent stage. Management also reported cumulative net lifetime value of Rs 122 cr for the business.
No market reaction yet
The consolidated results were filed after market close on 13 Aug 2026. There is therefore no market reaction to assess yet.
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 | ₹11 cr |
| Other income | ₹0 cr |
| Expenses | ₹9 cr |
| Operating profit | ₹2 cr |
| Operating margin (%) | 17.22% |
| Interest | ₹1 cr |
| Depreciation | ₹1 cr |
| Profit before tax | ₹-0 cr |
| Tax | ₹-0 cr |
| Net profit | ₹-0 cr |
| EPS (₹) | ₹-0.01 |
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Q1 FY26-27 revenue reflected positive order conversion at the start of the year.
- Q1 booking was ₹4.2 crore against ₹16.2 crore executed, leaving an unexecuted order book of ₹82 crore.
Guidance & outlook
- The unexecuted order book provides multi-quarter visibility to rebuild revenue through FY26-27.
- Revenue from existing contracts is expected to be recognized over their 7–10-year tenure, providing sustained visibility.
- The company is positioned for stronger revenue and profitability as its project portfolio scales.
- Megaliter Varunaa's contracted project portfolio is expected to support significant long-term growth.
Expansion
- The company expanded into Bangalore and Mumbai through projects with Brigade, Reliance and RMZ.
- Megaliter Varunaa had a portfolio of 15 projects and 11.7 MLD treatment capacity in mid-2026.
- Megaliter Varunaa's portfolio included one additional project at the letter-of-intent stage.
- Megaliter Varunaa's cumulative net lifetime value reached ₹122 crore by mid-2026.
New orders
- The company won an order from Auro Infra in Hyderabad.
- The company secured multiple bio-toilet projects from construction clients and Grade-A developers in Hyderabad.
New initiatives
- Banka WaSH includes bio-digesters developed through a DRDO partnership.
What to watch
- Whether operating margin holds above 17.22% as interest and depreciation remain at Rs 1.16 cr and Rs 0.85 cr.
- Conversion of the Rs 82 cr unexecuted order book into reported revenue.
- Progression of Megaliter Varunaa's 15-project, 11.7 MLD treatment portfolio.