Interest absorbed most of Edelweiss's operating profit
Negative tax of Rs 11.80 cr lifted net profit above pre-tax profit, while operating margin lagged the sector median by 38.98 percentage points.
Filed 06 Aug 2026, 17:17 IST · after market close · Edelweiss Financial Services Ltd (EDELWEISS)
Key takeaways
- Interest of Rs 557.95 cr absorbed most of Edelweiss's Rs 592.62 cr operating profit, leaving Rs 122.57 cr profit before tax.
- A negative tax rate of -9.63% lifted consolidated net profit to Rs 134.37 cr, above profit before tax.
- Edelweiss's 25.45% operating margin was 38.98 percentage points below the 64.43% median for 53 reported financial-services peers.
Price around the results
Interest left a narrow pre-tax profit
The consolidated quarter produced Rs 134.37 cr of net profit, but the earnings bridge was narrow: interest of Rs 557.95 cr absorbed most of operating profit of Rs 592.62 cr, leaving Rs 122.57 cr before tax. Other income of Rs 123.77 cr exceeded profit before tax, which points to limited pre-tax earnings after financing costs. A negative tax charge of Rs 11.80 cr lifted net profit above pre-tax profit.
Operating margin trails reported sector peers
Edelweiss's operating margin of 25.45% was 38.98 percentage points below the 64.43% median among 53 financial-services peers that had reported the quarter. It ranked seventh from the bottom, placing the company's operating profitability near the lower end of this peer set.
Results were filed after market close
The consolidated results were filed after market close on 06 August 2026. The stock's immediate response is therefore not yet part of this results assessment.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹2,329 cr |
| Other income | ₹124 cr |
| Expenses | ₹1,736 cr |
| Operating profit | ₹593 cr |
| Operating margin (%) | 25.45% |
| Interest | ₹558 cr |
| Depreciation | ₹36 cr |
| Profit before tax | ₹123 cr |
| Tax | ₹-12 cr |
| Net profit | ₹134 cr |
| EPS (₹) | ₹1.42 |
Operating margin of 25.45% compares with a Financial Services sector median of 64.43% across 53 peers that have reported Q1FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -1.98% | -1.72% |
Volume on the results session was 1.33× its 20-day average.
What to watch
- Whether operating profit continues to cover interest of Rs 557.95 cr.
- Whether operating margin moves above 25.45%.