Operating margin rises to 66.71% as Great Eastern's revenue jumps 66.91%
Costs grew 19.50% year on year against 66.91% revenue growth, while other income contributed 20.58% of pre-tax profit.
Filed 03 Aug 2026, 16:58 IST · after market close · Great Eastern Shipping Company Ltd (GESHIP)
Key takeaways
- Consolidated operating margin expanded 13.21 percentage points year on year to 66.71% as revenue grew 66.91% while expenses rose 19.50%.
- Net profit rose 159.43% year on year to Rs 1308.84 cr, helped by a lower tax rate of 4.10% and a 55.56% fall in interest costs.
- Other income accounted for 20.58% of pre-tax profit, making it a material contributor to the quarter's earnings.
Price around the results
Revenue acceleration widened the operating spread
Great Eastern Shipping's consolidated revenue grew 66.91% year on year and 32.68% sequentially in Q1FY27, while expenses increased only 19.50% and 17.13%, respectively. That operating leverage lifted operating profit 108.12% year on year and 42.10% sequentially. The operating margin also rose 4.42 percentage points from Q4FY26.
Lower finance costs supported profit, but other income remains material
Interest expense fell 55.56% year on year and 12.93% sequentially, adding to the operating gain. Other income represented 20.58% of pre-tax profit, so earnings were not driven by operations alone. The tax rate was 4.10%, compared with 5.87% a year earlier and -0.14% in the preceding quarter; the sequential increase partly limited the rise in net profit relative to pre-tax profit.
Margin direction remains upward despite one quarterly dip
Operating margin has climbed from 41.01% in Q4FY25 to 66.71% now, with a single decline to 57.46% in Q3FY26 before recovering through Q4FY26 and Q1FY27. The current margin was 44.25 percentage points above the 22.46% median for 14 Services-sector peers that had reported the same quarter. This places Great Eastern well above the sector comparison on operating profitability.
No immediate market reaction after the filing
The consolidated results were filed after market close, so there is no current-session stock reaction to assess. Across the past eight result reactions, the stock rose five times and fell three times, with a median absolute move of 2.46%.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹2,005 cr | ₹1,511 cr | +32.68% | +66.91% |
| Other income | ₹281 cr | ₹346 cr | -18.79% | +107.41% |
| Expenses | ₹668 cr | ₹570 cr | +17.13% | +19.50% |
| Operating profit | ₹1,338 cr | ₹941 cr | +42.10% | +108.12% |
| Operating margin (%) | 66.71% | 62.29% | — | — |
| Interest | ₹20 cr | ₹23 cr | -12.93% | -55.56% |
| Depreciation | ₹234 cr | ₹222 cr | +5.47% | +18.50% |
| Profit before tax | ₹1,365 cr | ₹1,043 cr | +30.90% | +154.64% |
| Tax | ₹56 cr | ₹-1 cr | — | +77.81% |
| Net profit | ₹1,309 cr | ₹1,044 cr | +25.36% | +159.43% |
| EPS (₹) | ₹91.68 | ₹73.13 | +25.37% | +159.42% |
Operating margin of 66.71% compares with a Services sector median of 22.46% across 14 peers that have reported Q1FY27.
What to watch
- Whether operating margin holds above 66.71%.
- Whether other income remains close to 20.58% of pre-tax profit.
- Whether the tax rate stays near 4.10% after the -0.14% rate in Q4FY26.