Interest, depreciation and tax left little profit from Rs 8.33 cr operating profit
The consolidated quarter produced Rs 0.06 cr of net profit as an 86.78% tax rate absorbed most of pre-tax earnings.
Filed 11 Aug 2026, 00:17 IST · GSLSU (GSLSU)
Key takeaways
- Consolidated operating profit of Rs 8.33 cr was reduced to profit before tax of Rs 0.48 cr after Rs 3.54 cr interest and Rs 4.50 cr depreciation.
- The 86.78% tax rate left only Rs 0.06 cr of consolidated net profit from Rs 0.48 cr of pre-tax profit.
- Other income of Rs 0.19 cr was material relative to the Rs 0.48 cr pre-tax profit, limiting the quality of reported earnings.
Operating profit did not translate into meaningful earnings
GSLSU reported consolidated revenue of Rs 65.42 cr and operating profit of Rs 8.33 cr. Interest of Rs 3.54 cr and depreciation of Rs 4.50 cr reduced this to Rs 0.48 cr of pre-tax profit. The earnings conversion from operations was therefore weak in the quarter.
Tax and other income shaped the reported result
Other income of Rs 0.19 cr formed a material part of the Rs 0.48 cr pre-tax profit, so the quarter's earnings were not generated entirely by operations. The 86.78% tax rate further reduced pre-tax profit to Rs 0.06 cr of net profit and EPS of Rs 0.04.
No sequential or year-on-year read-through yet
The quarter has no reported sequential or year-on-year comparison, and no multi-quarter trend is available. The key analytical issue in this result is therefore the gap between Rs 8.33 cr of operating profit and Rs 0.06 cr of net profit, rather than a change in growth or margins.
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 | ₹65 cr |
| Other income | ₹0 cr |
| Expenses | ₹57 cr |
| Operating profit | ₹8 cr |
| Operating margin (%) | 12.74% |
| Interest | ₹4 cr |
| Depreciation | ₹5 cr |
| Profit before tax | ₹0 cr |
| Tax | ₹0 cr |
| Net profit | ₹0 cr |
| EPS (₹) | ₹0.04 |
What to watch
- Whether operating profit continues to cover the Rs 3.54 cr interest burden and Rs 4.50 cr depreciation.
- Whether the tax rate moves down from 86.78% in the next reported quarter.
- Whether net profit improves from Rs 0.06 cr without relying materially on Rs 0.19 cr of other income.