Heranba's Rs 49.1 cr operating profit yielded only Rs 7.03 cr net profit
Interest of Rs 12.91 cr, depreciation of Rs 21.94 cr and a 65.02% tax rate weighed on earnings; other income was Rs 5.85 cr.
Filed 22 Aug 2026, 12:52 IST · after market close · Heranba Industries Ltd (HERANBA)
Key takeaways
- A 65.02% tax rate reduced consolidated Q1FY27 net profit to Rs 7.03 cr despite Rs 49.1 cr of operating profit.
- Interest of Rs 12.91 cr and depreciation of Rs 21.94 cr left Rs 49.1 cr of operating profit at Rs 20.1 cr of pre-tax profit, despite Rs 5.85 cr of other income.
- Heranba's stock rose 8.17% on the first trading response, with volume at 9.71 times normal.
Price around the results
Operating profit did not translate into net earnings
Heranba's consolidated operating profit of Rs 49.1 cr was reduced to Rs 20.1 cr of profit before tax by interest of Rs 12.91 cr and depreciation of Rs 21.94 cr. Other income of Rs 5.85 cr provided some offset, but the 65.02% tax rate further compressed net profit to Rs 7.03 cr and EPS to Rs 1.78.
Margin trails the commodity peer median
The 12.81% operating margin was 1.06 percentage points below the 13.87% median among 161 commodity-sector peers that had reported the quarter. The gap places Heranba below the sector midpoint despite the quarter's Rs 49.1 cr operating profit.
Stock reaction was positive after the filing
The results were filed after market close, and the stock gained 8.17% in the first trading response, including a 3.86% opening gap. The move came with volume at 9.71 times normal; the stock was still up 4.67% after five sessions.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹383 cr |
| Other income | ₹6 cr |
| Expenses | ₹334 cr |
| Operating profit | ₹49 cr |
| Operating margin (%) | 12.81% |
| Interest | ₹13 cr |
| Depreciation | ₹22 cr |
| Profit before tax | ₹20 cr |
| Tax | ₹13 cr |
| Net profit | ₹7 cr |
| EPS (₹) | ₹1.78 |
Operating margin of 12.81% compares with a Commodities sector median of 13.87% across 161 peers that have reported Q1FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +8.17% | +8.31% |
| Next session | +5.70% | — |
| 5 sessions | +4.67% | +5.38% |
| 15 sessions | +0.65% | — |
Volume on the results session was 9.71× its 20-day average.
What to watch
- Whether the tax rate moves down from 65.02% in the next quarter.
- Whether operating margin moves closer to the 13.87% commodity-sector median.
- Whether interest and depreciation remain near Rs 12.91 cr and Rs 21.94 cr, respectively.