High operating margin was diluted by depreciation and interest
Standalone operating margin was 43.71%, but depreciation and interest left only Rs 2.25 of pre-tax profit from Rs 12.61 of operating profit.
Filed 10 Aug 2026, 14:19 IST · BYKE (BYKE)
Key takeaways
- Standalone operating profit of Rs 12.61 was reduced to Rs 2.25 of pre-tax profit after Rs 7.97 of depreciation and Rs 2.69 of interest.
- The Rs 0.01 tax charge, equal to a 0.26% tax rate, allowed net profit to match pre-tax profit at Rs 2.25.
- Other income of Rs 0.30 was small relative to pre-tax profit, so reported earnings were driven mainly by operations and below-operating-line costs.
Operating profit did not translate into equivalent earnings
The standalone results show a wide gap between operating profit of Rs 12.61 and pre-tax profit of Rs 2.25. Depreciation of Rs 7.97 and interest of Rs 2.69 absorbed most of the operating profit, making below-operating-line costs the main constraint on earnings.
A near-zero tax rate supported reported net profit
The Rs 0.01 tax charge produced a 0.26% tax rate, allowing net profit to equal pre-tax profit at Rs 2.25. Other income of Rs 0.30 was modest relative to pre-tax profit, so profit quality was not materially dependent on non-operating income.
No sequential or year-on-year direction is available for this quarter
The quarter's 43.71% operating margin provides the starting point for assessing future movement, but this filing does not include a sequential or year-on-year comparison. The key distinction is between preserving operating profitability and containing the Rs 7.97 depreciation and Rs 2.69 interest burden.
Q1FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹29 cr |
| Other income | ₹0 cr |
| Expenses | ₹16 cr |
| Operating profit | ₹13 cr |
| Operating margin (%) | 43.71% |
| Interest | ₹3 cr |
| Depreciation | ₹8 cr |
| Profit before tax | ₹2 cr |
| Tax | ₹0 cr |
| Net profit | ₹2 cr |
| EPS (₹) | ₹0.43 |
What to watch
- Whether operating margin remains around 43.71%.
- Whether depreciation stays near Rs 7.97 while operating profit remains Rs 12.61 or higher.
- Whether the tax rate remains close to 0.26% rather than moving materially above it.