Interest and depreciation sharply narrowed CENTEXT’s operating-to-net profit conversion
Standalone Q1FY27 operating profit was Rs 10.65 cr, while Rs 3.70 cr of interest and a 24.90% tax rate left net profit at Rs 3.77 cr.
Filed 14 Aug 2026, 17:01 IST · after market close · CENTEXT (CENTEXT)
Key takeaways
- Standalone operating profit of Rs 10.65 cr translated into net profit of Rs 3.77 cr after Rs 3.70 cr of interest and Rs 2.06 cr of depreciation.
- Other income was only Rs 0.13 cr against profit before tax of Rs 5.02 cr, indicating that reported profit was largely operating-led.
- The company reported operating margin of 7.70% and EPS of Rs 0.47 in Q1FY27.
Operating profit did not fully flow through to net profit
CENTEXT reported standalone revenue of Rs 138.36 cr and operating profit of Rs 10.65 cr in Q1FY27. Interest of Rs 3.70 cr and depreciation of Rs 2.06 cr came after operating profit, leaving profit before tax at Rs 5.02 cr. Net profit was Rs 3.77 cr, with EPS at Rs 0.47.
Profit quality was primarily operating-led
Other income was Rs 0.13 cr against profit before tax of Rs 5.02 cr, so non-operating income was not a material driver of the reported result. Tax of Rs 1.25 cr was charged at a 24.90% tax rate, further reducing pre-tax profit before the company reported net profit of Rs 3.77 cr.
Results were filed after market close
The standalone Q1FY27 results were filed on 14 August 2026 at 17:01 IST, after market close. With no quarter-on-quarter or year-on-year comparison in the reported release, the main reference points for the next update are the 7.70% operating margin and the conversion of Rs 10.65 cr of operating profit into Rs 3.77 cr of net profit.
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 | ₹138 cr |
| Other income | ₹0 cr |
| Expenses | ₹128 cr |
| Operating profit | ₹11 cr |
| Operating margin (%) | 7.70% |
| Interest | ₹4 cr |
| Depreciation | ₹2 cr |
| Profit before tax | ₹5 cr |
| Tax | ₹1 cr |
| Net profit | ₹4 cr |
| EPS (₹) | ₹0.47 |
What to watch
- Whether operating margin holds above 7.70%.
- Whether interest remains below Rs 3.70 cr.
- Whether net profit conversion improves from Rs 3.77 cr on operating profit of Rs 10.65 cr.