Tax credit lifts CHEMFAB profit despite Rs 2.22 cr pre-tax earnings
In consolidated Q1FY27 results filed after market close, depreciation and interest absorbed most operating profit while other income materially supported pre-tax earnings.
Filed 29 Jul 2026, 18:51 IST · after market close · CHEMFAB (CHEMFAB)
Key takeaways
- Interest of Rs 2.21 cr and depreciation of Rs 7.78 cr reduced the Rs 10.13 cr operating profit to Rs 2.22 cr before tax.
- A negative tax charge of Rs 3.51 cr, reflected in a -157.70% tax rate, lifted net profit to Rs 5.73 cr despite low pre-tax profit.
- Other income of Rs 2.08 cr was close to the Rs 2.22 cr pre-tax profit, making reported earnings less reflective of operating performance.
Depreciation and interest compressed operating earnings
CHEMFAB's consolidated revenue and expenses left Rs 10.13 cr of operating profit, equivalent to a 13.84% operating margin. Interest of Rs 2.21 cr and depreciation of Rs 7.78 cr then reduced pre-tax profit to Rs 2.22 cr. The earnings bridge shows that non-cash depreciation was the larger charge below operating profit.
Tax credit and other income shaped reported profit
The negative tax charge of Rs 3.51 cr produced a -157.70% tax rate and lifted net profit to Rs 5.73 cr. Other income of Rs 2.08 cr was also close to pre-tax profit of Rs 2.22 cr. As a result, net profit was supported by both the tax line and non-operating income rather than operating profit alone.
No market reaction was available after the filing
The consolidated results were filed at 18:51 IST on 29 July 2026, after market close. There is no post-results stock reaction to assess yet, and no sequential, year-on-year or multi-quarter comparison is provided for this quarter.
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 | ₹73 cr |
| Other income | ₹2 cr |
| Expenses | ₹63 cr |
| Operating profit | ₹10 cr |
| Operating margin (%) | 13.84% |
| Interest | ₹2 cr |
| Depreciation | ₹8 cr |
| Profit before tax | ₹2 cr |
| Tax | ₹-4 cr |
| Net profit | ₹6 cr |
| EPS (₹) | ₹3.99 |
What to watch
- Whether operating margin holds above 13.84% in the next reported quarter.
- Whether pre-tax profit can widen from Rs 2.22 cr without similar support from Rs 2.08 cr of other income.
- Whether the tax rate moves away from -157.70% and reduces the gap between pre-tax profit of Rs 2.22 cr and net profit of Rs 5.73 cr.