Interest and depreciation absorbed most of DEVX's operating profit
Consolidated operating margin was 56.31%, but Rs 14.00 cr of interest and Rs 17.68 cr of depreciation left Rs 1.58 cr before tax.
Filed 12 Aug 2026, 18:23 IST · after market close · DEVX (DEVX)
Key takeaways
- DEVX's consolidated operating profit of Rs 30.28 cr was reduced to Rs 1.58 cr of profit before tax after Rs 14.00 cr of interest and Rs 17.68 cr of depreciation.
- Other income of Rs 2.97 cr exceeded profit before tax, making reported earnings quality a key issue this quarter.
- The 4.57% tax rate supported net profit of Rs 1.50 cr, while the results were filed after market close.
High operating margin, limited profit conversion
DEVX reported a 56.31% consolidated operating margin in Q1FY27, with operating profit of Rs 30.28 cr. That operating profit did not translate into comparable pre-tax earnings because interest and depreciation together were larger than the operating profit.
Other income and tax shaped net profit
Other income was Rs 2.97 cr, higher than the Rs 1.58 cr profit before tax, so reported pre-tax earnings were not driven only by operations. The 4.57% tax rate also reduced the amount absorbed by tax, leaving net profit at Rs 1.50 cr and EPS at Rs 0.16.
No market reaction yet
The consolidated results were filed at 18:23 IST on 12 August 2026, after market close. No post-results stock reaction is available yet, so the immediate market response cannot be assessed.
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 | ₹54 cr |
| Other income | ₹3 cr |
| Expenses | ₹23 cr |
| Operating profit | ₹30 cr |
| Operating margin (%) | 56.31% |
| Interest | ₹14 cr |
| Depreciation | ₹18 cr |
| Profit before tax | ₹2 cr |
| Tax | ₹0 cr |
| Net profit | ₹2 cr |
| EPS (₹) | ₹0.16 |
What to watch
- Whether operating profit of Rs 30.28 cr converts into a higher profit before tax than Rs 1.58 cr.
- Whether interest remains near Rs 14.00 cr and depreciation near Rs 17.68 cr.
- Whether other income stays above profit before tax of Rs 1.58 cr and the tax rate remains near 4.57%.