Interest and tax turned Gloster’s operating profit into a net loss
Consolidated operating margin was 8.69%, but Rs 21.74 cr of interest and a 209.53% tax rate pushed net profit to Rs -2.34 cr.
Filed 07 Aug 2026, 18:11 IST · after market close · GLOSTERLTD (GLOSTERLTD)
Key takeaways
- Consolidated operating profit of Rs 37.16 cr was reduced to pre-tax profit of Rs 2.13 cr after Rs 21.74 cr of interest and Rs 16.53 cr of depreciation.
- A Rs 4.47 cr tax charge against Rs 2.13 cr of pre-tax profit resulted in a consolidated net loss of Rs 2.34 cr and EPS of Rs -2.13.
- Other income of Rs 3.24 cr exceeded pre-tax profit, showing that reported profit was not supported by operating earnings alone.
Operating profit did not translate into earnings
Gloster’s consolidated operating profit of Rs 37.16 cr left only Rs 2.13 cr before tax after interest of Rs 21.74 cr and depreciation of Rs 16.53 cr. The Rs 4.47 cr tax charge then took net profit to a loss of Rs 2.34 cr, with EPS at Rs -2.13. Other income of Rs 3.24 cr was larger than pre-tax profit, which also limits the quality of reported earnings.
Costs left a narrow operating cushion
Revenue of Rs 427.39 cr against expenses of Rs 390.23 cr produced an operating margin of 8.69%. The 209.53% tax rate further widened the gap between pre-tax and net profit.
Filed after market close, with no comparison yet
The consolidated results were filed after market close, so there is no market reaction to assess yet. The release provides no sequential or year-on-year comparison, and no multi-quarter trend is available. The next reported quarter will show whether the 8.69% operating margin and Rs 21.74 cr interest burden have changed.
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 | ₹427 cr |
| Other income | ₹3 cr |
| Expenses | ₹390 cr |
| Operating profit | ₹37 cr |
| Operating margin (%) | 8.69% |
| Interest | ₹22 cr |
| Depreciation | ₹17 cr |
| Profit before tax | ₹2 cr |
| Tax | ₹4 cr |
| Net profit | ₹-2 cr |
| EPS (₹) | ₹-2.13 |
What to watch
- Whether operating margin holds above 8.69%.
- Whether interest remains below or above the Rs 21.74 cr reported this quarter.
- Whether the tax rate moves down from 209.53%.