HGM posts consolidated loss as expenses exceed revenue
The operating loss widened the damage below the operating line, while other income and a tax credit only partly offset it.
Filed 14 Aug 2026, 10:53 IST · HGM (HGM)
Key takeaways
- HGM reported a consolidated net loss of Rs 2.06 cr in Q1FY27 after expenses of Rs 11.98 cr exceeded revenue of Rs 10.8 cr.
- Operating margin was -10.97%, reflecting an operating loss of Rs 1.18 cr before interest and depreciation.
- Other income of Rs 0.29 cr and a tax credit of Rs 0.12 cr partly reduced the loss, but earnings remained negative.
Revenue did not cover the cost base
HGM's consolidated expenses were higher than revenue in Q1FY27, resulting in an operating loss of Rs 1.18 cr. The negative operating margin of -10.97% shows that the shortfall was present before interest and depreciation were charged.
Interest and depreciation deepened the loss
Interest of Rs 0.5 cr and depreciation of Rs 0.8 cr added to the operating deficit, taking the company to a loss before tax of Rs 2.19 cr. Other income of Rs 0.29 cr provided only a partial offset, so the result was not supported by operating earnings.
Tax credit softened, but did not change, the result
A tax credit of Rs 0.12 cr reduced the reported loss from the pre-tax level to a consolidated net loss of Rs 2.06 cr. With no year-on-year, sequential or historical reaction data provided, the quarter is best assessed on its negative operating performance and loss quality.
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 | ₹11 cr |
| Other income | ₹0 cr |
| Expenses | ₹12 cr |
| Operating profit | ₹-1 cr |
| Operating margin (%) | -10.97% |
| Interest | ₹1 cr |
| Depreciation | ₹1 cr |
| Profit before tax | ₹-2 cr |
| Tax | ₹-0 cr |
| Net profit | ₹-2 cr |
| EPS (₹) | ₹-1.64 |
What to watch
- Whether revenue moves above the Rs 10.8 cr reported in Q1FY27.
- Whether operating margin improves from -10.97%.
- Whether interest remains at Rs 0.5 cr while operating profit is negative.