Zero tax charge leaves standalone net profit equal to PBT
Interest of Rs 149.84 cr absorbed much of operating profit, while other income contributed only Rs 0.14 cr.
Filed 11 Aug 2026, 15:26 IST · FUSION (FUSION)
Key takeaways
- Standalone operating margin was 46.67%, but interest of Rs 149.84 cr reduced operating profit of Rs 213.85 cr to profit before tax of Rs 62.41 cr.
- Standalone net profit was Rs 62.41 cr because the reported tax charge was Rs 0, making the zero tax rate a key profit-quality factor.
- Management said FY27 onwards is about building a foundation for sustainable growth, while other income contributed only Rs 0.14 cr.
Operating profit was cut sharply by interest
Standalone revenue of Rs 458.17 cr produced operating profit of Rs 213.85 cr, a 46.67% operating margin. Interest of Rs 149.84 cr and depreciation of Rs 1.74 cr then reduced operating profit to profit before tax of Rs 62.41 cr.
Zero tax charge shaped reported earnings
Net profit matched profit before tax at Rs 62.41 cr because the reported tax charge was Rs 0. Other income of Rs 0.14 cr was small relative to profit before tax, so it was not a meaningful driver of earnings.
Management frames FY27 as a foundation year
Management said FY27 onwards is about building a foundation for sustainable growth. The statement sets out the company’s stated direction, while the quarter’s reported earnings remained primarily shaped by operating profit, interest and the zero tax charge.
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 | ₹458 cr |
| Other income | ₹0 cr |
| Expenses | ₹244 cr |
| Operating profit | ₹214 cr |
| Operating margin (%) | 46.67% |
| Interest | ₹150 cr |
| Depreciation | ₹2 cr |
| Profit before tax | ₹62 cr |
| Tax | ₹0 cr |
| Net profit | ₹62 cr |
| EPS (₹) | ₹3.86 |
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- The company describes FY27 onwards as building a foundation for sustainable growth.
What to watch
- Whether operating margin holds around 46.67%.
- How the next quarter’s interest expense compares with Rs 149.84 cr.
- Whether the tax rate remains at 0.00%.