CE Water swings to Rs 17.57 cr loss as margin falls 26.49 pp
Revenue fell 58.58% QoQ, while a Rs 2.57 cr tax benefit softened the reported loss.
Filed 11 Aug 2026, 20:54 IST · after market close · CEWATER (CEWATER)
Key takeaways
- Consolidated net profit swung from Rs 14.15 cr in Q4FY26 to a Rs 17.57 cr loss in Q1FY27 as revenue fell 58.58% QoQ.
- Operating margin fell 26.49 percentage points to -17.51% because expenses declined 46.52%, less than revenue's 58.58% drop.
- A Rs 2.57 cr tax benefit softened the Rs 19.71 cr pre-tax loss, while Rs 5.39 cr of other income did not prevent an operating loss.
Revenue collapse erased Q4 operating profit
The consolidated business moved from an operating profit of Rs 18.50 cr in Q4FY26 to an operating loss of Rs 14.94 cr in Q1FY27 as revenue fell 58.58% sequentially. This converted a Rs 14.15 cr net profit into a Rs 17.57 cr net loss. The results were filed after market close.
Costs did not adjust with the revenue drop
Expenses fell 46.52%, materially less than the 58.58% decline in revenue, which drove the 26.49-percentage-point contraction in operating margin. Interest costs eased 9.73%, but depreciation increased 1.58%, offering limited relief. The reported tax rate fell 4.37 percentage points to 13.06%, with the Rs 2.57 cr tax benefit reducing the net loss relative to the pre-tax loss.
Other income could not offset the operating shortfall
Other income of Rs 5.39 cr did not offset the operating loss; because pre-tax profit was negative, other income represented -27.35% of pre-tax profit. Sequentially, the quarter shows a sharp reversal from Q4FY26, when operating margin was 8.98%, rather than a continuation of that level.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹85 cr | ₹206 cr | -58.58% |
| Other income | ₹5 cr | ₹10 cr | -45.56% |
| Expenses | ₹100 cr | ₹188 cr | -46.52% |
| Operating profit | ₹-15 cr | ₹19 cr | — |
| Operating margin (%) | -17.51% | 8.98% | — |
| Interest | ₹5 cr | ₹6 cr | -9.73% |
| Depreciation | ₹5 cr | ₹5 cr | +1.58% |
| Profit before tax | ₹-20 cr | ₹18 cr | — |
| Tax | ₹-3 cr | ₹3 cr | — |
| Net profit | ₹-18 cr | ₹14 cr | — |
| EPS (₹) | ₹-8.49 | ₹6.84 | — |
What to watch
- Whether revenue recovers from Rs 85.35 cr after the 58.58% QoQ decline.
- Whether operating margin improves from -17.51% after expenses fell 46.52% versus the 58.58% revenue drop.
- Whether the Rs 2.57 cr tax benefit and Rs 5.39 cr of other income recur alongside the operating result.