Interest and depreciation left only Rs 1.28 cr before tax
Standalone operating profit was Rs 11.16 cr, but Rs 7.19 cr of interest and Rs 3.18 cr of depreciation sharply reduced earnings conversion.
Filed 14 Aug 2026, 18:43 IST · after market close · DAVANGERE (DAVANGERE)
Key takeaways
- Standalone operating profit of Rs 11.16 cr was absorbed largely by Rs 7.19 cr of interest and Rs 3.18 cr of depreciation, leaving Rs 1.28 cr before tax.
- Other income was Rs 0.49 cr against profit before tax of Rs 1.28 cr, so reported profit was not primarily supported by non-operating income.
- A 32.14% operating margin translated into only Rs 0.94 cr of standalone net profit and EPS of Rs 0.01 after Rs 0.34 cr of tax.
Operating profit did not convert into earnings
Davangere reported standalone revenue of Rs 34.72 cr and operating profit of Rs 11.16 cr in Q1FY27. Interest of Rs 7.19 cr and depreciation of Rs 3.18 cr reduced profit before tax to Rs 1.28 cr. Net profit was Rs 0.94 cr, with EPS at Rs 0.01.
Below-the-line costs were the main earnings drag
The 32.14% operating margin was not enough to offset the combined burden of interest and depreciation. Other income of Rs 0.49 cr provided only limited support relative to profit before tax of Rs 1.28 cr. The tax charge was Rs 0.34 cr at a reported tax rate of 26.74%.
Results were filed after market close
The standalone results were filed at 18:43 IST on 14 August 2026, after market close. There is therefore no immediate market reaction to assess in this report.
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 | ₹35 cr |
| Other income | ₹0 cr |
| Expenses | ₹24 cr |
| Operating profit | ₹11 cr |
| Operating margin (%) | 32.14% |
| Interest | ₹7 cr |
| Depreciation | ₹3 cr |
| Profit before tax | ₹1 cr |
| Tax | ₹0 cr |
| Net profit | ₹1 cr |
| EPS (₹) | ₹0.01 |
What to watch
- Whether interest expense remains below or moves above the Rs 11.16 cr operating-profit base.
- Whether operating margin holds around 32.14% while depreciation remains at Rs 3.18 cr.
- Whether profit before tax improves from Rs 1.28 cr without greater reliance on Rs 0.49 cr of other income.