DCMSIL's profit barely turned positive as interest doubled and tax took 98.58%
The consolidated operating margin slipped as costs declined slower than revenue, while other income was larger than reported pre-tax profit.
Filed 14 Aug 2026, 16:26 IST · after market close · DCMSIL (DCMSIL)
Key takeaways
- Consolidated net profit turned positive at Rs 0.03 cr from a Rs 18.22 cr loss in Q4FY26, but other income contributed 152.13% of pre-tax profit.
- Operating margin narrowed 0.14 percentage points to 5.06% as expenses fell 6.55%, less than the 6.68% revenue decline.
- Interest expense rose 105.04% sequentially, while a 98.58% tax rate absorbed almost all of the Rs 2.11 cr pre-tax profit.
A narrow profit turnaround after Q4's loss
DCMSIL reported consolidated revenue of Rs 108.59 cr in Q1FY27, down 6.68% sequentially, while operating profit fell 9.09% to Rs 5.50 cr. Net profit moved to Rs 0.03 cr from a Rs 18.22 cr loss in Q4FY26, but the improvement was not driven by operations alone. Other income swung from a Rs 18.13 cr loss to Rs 3.21 cr, equal to 152.13% of pre-tax profit.
Higher financing cost and tax weakened earnings quality
Expenses declined 6.55%, less than the 6.68% fall in revenue, narrowing operating margin by 0.14 percentage points to 5.06%. Interest expense more than doubled sequentially, rising 105.04%, and depreciation increased 13.98%. The 98.58% tax rate, up 107.29 percentage points from Q4FY26, left only Rs 0.03 cr of net profit from Rs 2.11 cr of pre-tax profit.
Results filed after market close
The company filed these consolidated results after market close on 14 August 2026. With only the preceding quarter available for comparison, the key sequential direction was weaker operating profit and a slight margin decline despite the return to reported profitability.
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 | ₹109 cr | ₹116 cr | -6.68% |
| Other income | ₹3 cr | ₹-18 cr | — |
| Expenses | ₹103 cr | ₹110 cr | -6.55% |
| Operating profit | ₹6 cr | ₹6 cr | -9.09% |
| Operating margin (%) | 5.06% | 5.20% | — |
| Interest | ₹3 cr | ₹1 cr | +105.04% |
| Depreciation | ₹4 cr | ₹3 cr | +13.98% |
| Profit before tax | ₹2 cr | ₹-17 cr | — |
| Tax | ₹2 cr | ₹1 cr | +42.47% |
| Net profit | ₹0 cr | ₹-18 cr | — |
| EPS (₹) | ₹0.00 | ₹-2.09 | — |
What to watch
- Whether operating margin recovers from 5.06% after the 0.14 percentage-point sequential decline.
- Whether interest expense falls from Rs 2.85 cr after its 105.04% sequential increase.
- Whether other income remains below the 152.13% share of pre-tax profit recorded this quarter.