Depreciation and interest turn HGM's operating profit into a loss
Standalone operating margin was 11.15 percentage points below the 91-peer IT median; shares fell 5.63% by the fifth trading day.
Filed 22 Sep 2026, 13:47 IST · Handson Global Management (HGM) Ltd (HGM)
Key takeaways
- HGM reported a standalone net loss of Rs 0.31 cr despite generating Rs 0.35 cr of operating profit.
- Depreciation of Rs 0.80 cr and interest of Rs 0.28 cr more than offset operating profit, resulting in a Rs 0.43 cr pre-tax loss.
- HGM's 3.58% operating margin was 11.62 percentage points below the 15.20% median for 92 reported IT peers.
Price around the results
Operating profit did not cover depreciation and interest
HGM's standalone operating profit of Rs 0.35 cr was insufficient to absorb Rs 0.80 cr of depreciation and Rs 0.28 cr of interest. Other income of Rs 0.29 cr partly offset those charges, but the company still reported a pre-tax loss of Rs 0.43 cr. A tax benefit of Rs 0.12 cr reduced the reported net loss to Rs 0.31 cr.
Operating margin remains well below the IT peer median
The 3.58% operating margin was 11.62 percentage points below the 15.20% median among 92 Information Technology companies that had reported the quarter. The main earnings pressure was below the operating line, where depreciation and interest together exceeded operating profit. The reported tax rate of 28.81% reflects a tax benefit despite the pre-tax loss, so it cushioned rather than improved operating performance.
The recorded market reaction was weak through five sessions
In the recorded reaction, HGM fell 2.81% at the initial close and was down 5.63% after five sessions. It later gained 11.06% by session 15 but was still down 12.96% by session 30. The available reaction record does not establish whether this was unusual compared with HGM's earlier results.
Q1FY27 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹10 cr |
| Other income | ₹0 cr |
| Expenses | ₹9 cr |
| Operating profit | ₹0 cr |
| Operating margin (%) | 3.58% |
| Interest | ₹0 cr |
| Depreciation | ₹1 cr |
| Profit before tax | ₹-0 cr |
| Tax | ₹-0 cr |
| Net profit | ₹-0 cr |
| EPS (₹) | ₹-0.24 |
Operating margin of 3.58% compares with a Information Technology sector median of 15.20% across 92 peers that have reported Q1FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -2.81% | -2.68% |
| Next session | -4.92% | — |
| 5 sessions | -5.63% | -5.04% |
| 15 sessions | +11.06% | — |
| 30 sessions | -12.96% | — |
Volume on the results session was 0.34× its 20-day average.
What to watch
- Whether operating margin moves above the current 3.58%.
- Whether depreciation remains near Rs 0.80 cr against operating profit of Rs 0.35 cr.
- Whether the company continues to report a tax benefit against a pre-tax loss of Rs 0.43 cr.