Operating profit improved, but H.G. Infra posts Rs 44.52 cr loss
Negative other income of Rs 141.55 cr and Rs 117.62 cr of interest expense wiped out operating profit and pushed pre-tax profit below zero.
Filed 12 Aug 2026, 17:10 IST · after market close · H.G. Infra Engineering Ltd (HGINFRA)
Key takeaways
- H.G. Infra's consolidated operating profit rose to Rs 303.8 cr, but negative other income of Rs 141.55 cr left profit before tax at negative Rs 0.41 cr.
- The company posted a consolidated net loss of Rs 44.52 cr after a Rs 44.11 cr tax charge compounded the near-zero pre-tax result.
- Operating margin of 27.6% was 13.24 percentage points above the 14.36% median for 125 reported Industrials peers.
Price around the results
Operating profit did not reach net profit
Consolidated revenue was Rs 1,100.59 cr, while operating profit was Rs 303.8 cr. That operating profit was more than absorbed by interest of Rs 117.62 cr, depreciation of Rs 45.04 cr and negative other income of Rs 141.55 cr. The result was a pre-tax loss of Rs 0.41 cr and a net loss of Rs 44.52 cr.
Other income and the tax charge drove the loss
The negative other-income line was the largest drag below operating profit, turning an operating result of Rs 303.8 cr into a near-zero pre-tax result. A Rs 44.11 cr tax charge then widened the loss despite negative pre-tax profit. The reported tax rate of -10865.02% is therefore distorted by the near-zero negative pre-tax figure rather than showing a normal effective tax burden.
Margin improved versus Q4FY25 and beat the sector median
Operating margin increased to 27.6% from 17.59% in Q4FY25, even as revenue declined from Rs 1,360.89 cr to Rs 1,100.59 cr. This points to better operating conversion in the reported quarter, although the gain did not carry through to net profit because of below-operating-line charges. The margin was 13.24 percentage points above the 14.36% median among 125 Industrials companies that had reported.
Results were filed after market close
The company filed these consolidated Q1FY27 results after market close on 12 Aug 2026. The filing timing leaves the immediate stock response outside this update.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹1,101 cr |
| Other income | ₹-142 cr |
| Expenses | ₹797 cr |
| Operating profit | ₹304 cr |
| Operating margin (%) | 27.60% |
| Interest | ₹118 cr |
| Depreciation | ₹45 cr |
| Profit before tax | ₹-0 cr |
| Tax | ₹44 cr |
| Net profit | ₹-45 cr |
| EPS (₹) | ₹-6.83 |
Operating margin of 27.60% compares with a Industrials sector median of 14.36% across 125 peers that have reported Q1FY27.
What to watch
- Whether negative other income reverses from Rs 141.55 cr in the next reported quarter.
- Whether operating margin remains near 27.6% after the improvement from 17.59% in Q4FY25.
- Whether interest expense moves from Rs 117.62 cr and allows operating profit to reach pre-tax profit.