Depreciation and a near-zero tax rate shaped GATECH's Q1FY27 profit
The consolidated quarter generated Rs 3.05 cr of operating profit on Rs 4.5 cr revenue, while Rs 1.77 cr depreciation narrowed the pre-tax outcome.
Filed 12 Aug 2026, 16:13 IST · after market close · GATECH (GATECH)
Key takeaways
- The consolidated quarter converted Rs 4.5 cr of revenue into Rs 3.05 cr of operating profit, but Rs 1.77 cr of depreciation reduced profit before tax to Rs 1.53 cr.
- Net profit of Rs 1.52 cr was helped by a 0.28% tax rate, leaving little gap between profit before tax and reported earnings.
- Other income of Rs 0.25 cr contributed to profit before tax of Rs 1.53 cr, while EPS was Rs 0.01.
Operating profit was substantially reduced by depreciation
GATECH's consolidated revenue of Rs 4.5 cr produced Rs 3.05 cr of operating profit, indicating that the reported operating result was much larger than the final pre-tax profit. Depreciation of Rs 1.77 cr was the main charge between those two levels, bringing profit before tax to Rs 1.53 cr.
Reported profit benefited from a minimal tax charge
The Rs 0.25 cr of other income added to pre-tax profit, but operating profit remained the larger contributor to the quarter's earnings. The tax rate was 0.28%, with tax of Rs 0.00 cr, so net profit of Rs 1.52 cr remained close to profit before tax.
The filing came after the market close
GATECH filed these consolidated results at 16:13 IST on 12 August 2026, after market close. There is therefore no same-session stock reaction to assess in this note.
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 | ₹5 cr |
| Other income | ₹0 cr |
| Expenses | ₹1 cr |
| Operating profit | ₹3 cr |
| Operating margin (%) | 67.79% |
| Interest | ₹0 cr |
| Depreciation | ₹2 cr |
| Profit before tax | ₹2 cr |
| Tax | ₹0 cr |
| Net profit | ₹2 cr |
| EPS (₹) | ₹0.01 |
What to watch
- Whether operating margin holds near 67.79% in the next reported quarter.
- Whether depreciation remains around the Rs 1.77 cr level.
- Whether the tax rate remains close to 0.28% and EPS moves from Rs 0.01.