Interest and other income shaped HECPROJECT's Q1FY27 profit
The standalone business generated Rs 2.73 cr of operating profit, while Rs 1.42 cr of interest reduced the conversion to Rs 1.37 cr of net profit.
Filed 14 Aug 2026, 13:41 IST · HECPROJECT (HECPROJECT)
Key takeaways
- Standalone operating profit of Rs 2.73 cr produced an 8.78% margin, but interest of Rs 1.42 cr weighed on earnings below operations.
- Other income of Rs 0.29 cr supported pre-tax profit of Rs 1.57 cr, so reported earnings were partly non-operating.
- A 12.65% tax rate allowed the company to retain Rs 1.37 cr of net profit, equivalent to EPS of Rs 1.26.
Operating profit stayed positive in Q1FY27
HECPROJECT reported standalone revenue of Rs 31.12 cr and operating profit of Rs 2.73 cr in Q1FY27. The 8.78% operating margin indicates that the business generated a modest operating surplus before financing costs. Depreciation was limited to Rs 0.04 cr.
Interest was the main pressure below operations
Interest expense of Rs 1.42 cr was a significant charge against operating profit of Rs 2.73 cr, reducing pre-tax profit to Rs 1.57 cr. Other income added Rs 0.29 cr, which means the reported pre-tax result was not generated entirely by operations. Tax of Rs 0.20 cr at a 12.65% rate resulted in net profit of Rs 1.37 cr.
The next quarter will test operating conversion
The key question is whether the company can convert its operating profit into net profit without a similar financing drag. Revenue, operating margin, interest expense and the contribution from other income will determine how closely earnings track the standalone operating result.
Q1FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹31 cr |
| Other income | ₹0 cr |
| Expenses | ₹28 cr |
| Operating profit | ₹3 cr |
| Operating margin (%) | 8.78% |
| Interest | ₹1 cr |
| Depreciation | ₹0 cr |
| Profit before tax | ₹2 cr |
| Tax | ₹0 cr |
| Net profit | ₹1 cr |
| EPS (₹) | ₹1.26 |
What to watch
- Whether operating margin holds above 8.78%.
- Whether interest expense remains below Rs 1.42 cr.
- Whether other income stays near or below Rs 0.29 cr.