Digitide's Rs 76.89 cr operating profit leaves just Rs 2.93 cr net profit
High depreciation, interest and a 73.14% tax rate sharply reduced the conversion of operating earnings into consolidated net profit.
Filed 27 Jul 2026, 21:47 IST · after market close · DIGITIDE (DIGITIDE)
Key takeaways
- Digitide reported consolidated operating profit of Rs 76.89 cr in Q1FY27, but depreciation of Rs 55.18 cr and interest of Rs 15.12 cr reduced profit before tax to Rs 10.92 cr.
- A 73.14% tax rate on consolidated profit before tax of Rs 10.92 cr left net profit at Rs 2.93 cr.
- Other income of Rs 4.33 cr was a sizable contributor to the Rs 10.92 cr consolidated profit before tax, making the quarter less purely operating-led.
Q1 operating earnings were pared down below the operating line
Digitide reported consolidated revenue of Rs 775.07 cr and operating profit of Rs 76.89 cr for Q1FY27, implying an operating margin of 9.92%. Depreciation of Rs 55.18 cr and interest of Rs 15.12 cr were the main charges between operating profit and profit before tax of Rs 10.92 cr. The results were filed after market close on 27 July 2026.
Tax and other income shaped the reported profit
Other income of Rs 4.33 cr made a sizable contribution to consolidated profit before tax of Rs 10.92 cr, so reported pre-tax earnings were not solely operating-led. The Rs 7.99 cr tax charge represented a 73.14% tax rate, leaving consolidated net profit at Rs 2.93 cr.
The next check is profit conversion, not just operating profit
The key issue for subsequent quarters is whether the 9.92% operating margin converts more effectively into profit after depreciation, interest and tax. Investors can also track whether other income remains a meaningful part of profit before tax, against Rs 4.33 cr in 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 | ₹775 cr |
| Other income | ₹4 cr |
| Expenses | ₹698 cr |
| Operating profit | ₹77 cr |
| Operating margin (%) | 9.92% |
| Interest | ₹15 cr |
| Depreciation | ₹55 cr |
| Profit before tax | ₹11 cr |
| Tax | ₹8 cr |
| Net profit | ₹3 cr |
| EPS (₹) | ₹-0.13 |
What to watch
- Whether consolidated operating margin moves from 9.92% in the next reported quarter.
- Whether depreciation stays near the Rs 55.18 cr level as operating profit changes.
- Whether the tax rate falls from 73.14% and improves conversion from profit before tax to net profit.