Centum's reported net profit is far above pre-tax profit in Q1FY27
Operating margin was 2.88 percentage points below the Industrials peer median, while the reported profit bridge needs reconciliation.
Filed 13 Aug 2026, 17:44 IST · after market close · Centum Electronics Ltd (CENTUM)
Key takeaways
- Centum's consolidated operating margin of 11.54% was 2.88 percentage points below the 14.42% median for 138 Industrials peers.
- Reported net profit of Rs 105.5 cr exceeded profit before tax of Rs 15.95 cr, making the profit bridge a key issue to reconcile.
- Other income of Rs 2.31 cr cannot by itself explain the gap between reported net profit of Rs 105.5 cr and profit before tax of Rs 15.95 cr.
Price around the results
Operating margin trails the Industrials benchmark
Centum's consolidated operating margin was 11.54%, versus a 14.42% median among 138 Industrials companies that had reported. Operating profit of Rs 23.56 cr on revenue of Rs 204.15 cr leaves operating profitability as the main performance read-through for the quarter.
The reported profit bridge needs reconciliation
Reported net profit of Rs 105.5 cr was above profit before tax of Rs 15.95 cr, despite other income of Rs 2.31 cr and tax of Rs 4.72 cr. The relationship between these lines is not explained by the reported operating earnings, so the net profit and EPS of Rs 71.47 warrant a close check against the filing.
Interest and depreciation reduced the operating-to-pre-tax conversion
The consolidated P&L included interest of Rs 4.42 cr and depreciation of Rs 5.5 cr after operating profit of Rs 23.56 cr. Centum filed the results at 17:44 IST on 13 August, after market close, so the stock's immediate reaction is not covered.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹204 cr |
| Other income | ₹2 cr |
| Expenses | ₹181 cr |
| Operating profit | ₹24 cr |
| Operating margin (%) | 11.54% |
| Interest | ₹4 cr |
| Depreciation | ₹6 cr |
| Profit before tax | ₹16 cr |
| Tax | ₹5 cr |
| Net profit | ₹106 cr |
| EPS (₹) | ₹71.47 |
Operating margin of 11.54% compares with a Industrials sector median of 14.42% across 138 peers that have reported Q1FY27.
What to watch
- Whether the reported net profit remains reconciled with profit before tax of Rs 15.95 cr.
- Whether operating margin moves closer to the 14.42% Industrials peer median.
- Whether interest remains near Rs 4.42 cr and depreciation near Rs 5.5 cr in the next quarter.