Tax credit lifts net profit above pre-tax profit
A 7.01% consolidated operating margin was reduced by interest and depreciation, while other income and a tax credit supported reported profit.
Filed 07 Aug 2026, 13:05 IST · GILLANDERS (GILLANDERS)
Key takeaways
- Consolidated net profit of Rs 2.52 cr exceeded profit before tax of Rs 2.38 cr because tax was a credit of Rs 0.14 cr.
- Operating profit of Rs 6.40 cr translated into a 7.01% operating margin before interest of Rs 3.35 cr and depreciation of Rs 2.46 cr.
- Other income of Rs 1.79 cr was a large component of consolidated profit before tax of Rs 2.38 cr.
Operating profit left a limited cushion
Consolidated revenue of Rs 91.33 cr generated operating profit of Rs 6.40 cr after expenses of Rs 84.93 cr. That leaves the business with a 7.01% operating margin before financing and non-cash charges.
Below-the-line items shaped the result
Interest of Rs 3.35 cr and depreciation of Rs 2.46 cr reduced operating profit of Rs 6.40 cr to profit before tax of Rs 2.38 cr. Other income of Rs 1.79 cr was a large contributor to pre-tax profit. Net profit rose above pre-tax profit because the company reported a tax credit of Rs 0.14 cr, equivalent to a tax rate of -5.76%.
The quarter sets a quality watchpoint
The reported EPS was Rs 1.18, but profit benefited from both other income and a tax credit. The next set of results will show whether earnings continue to rely mainly on the 7.01% operating margin or receive similar support from below-the-line items.
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 | ₹91 cr |
| Other income | ₹2 cr |
| Expenses | ₹85 cr |
| Operating profit | ₹6 cr |
| Operating margin (%) | 7.01% |
| Interest | ₹3 cr |
| Depreciation | ₹2 cr |
| Profit before tax | ₹2 cr |
| Tax | ₹-0 cr |
| Net profit | ₹3 cr |
| EPS (₹) | ₹1.18 |
What to watch
- Whether operating margin holds around 7.01%.
- Whether interest remains below operating profit of Rs 6.40 cr.
- Whether other income remains a large contributor relative to profit before tax of Rs 2.38 cr.