HGS reports operating loss as other income fails to rescue Q1FY27
Consolidated net loss reached Rs 66.26 cr after interest, depreciation and a Rs 13.49 cr tax expense.
Filed 07 Aug 2026, 18:32 IST · after market close · HGS (HGS)
Key takeaways
- Consolidated operations slipped into a Rs 34.49 cr loss, with expenses of Rs 1,084.85 cr exceeding revenue of Rs 1,050.36 cr.
- Other income of Rs 150.80 cr did not offset the Rs 45.53 cr interest and Rs 123.55 cr depreciation burden, leaving profit before tax at a Rs 52.77 cr loss.
- The Rs 13.49 cr tax expense came despite a Rs 52.77 cr loss before tax, producing a reported tax rate of -25.56%.
Q1FY27 turns loss-making at the operating level
HGS reported a consolidated operating loss of Rs 34.49 cr in Q1FY27, as expenses exceeded revenue by Rs 34.49 cr. The resulting operating margin was -3.28%, making the operating business loss-making before interest, depreciation and tax. The results were filed after market close on 07 Aug 2026.
Depreciation and interest outweighed non-operating income
Depreciation of Rs 123.55 cr and interest of Rs 45.53 cr added to the operating loss. Other income of Rs 150.80 cr was substantial, but it did not prevent a consolidated loss before tax of Rs 52.77 cr. This makes the quarter's earnings quality weak: non-operating income was large, yet the company still reported a net loss.
Tax expense deepens the reported loss
A tax expense of Rs 13.49 cr was recorded despite the loss before tax, resulting in a reported tax rate of -25.56%. Net loss was therefore Rs 66.26 cr, with EPS at negative Rs 12.51. There is no quarter-on-quarter or year-on-year comparison in the reported data.
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 | ₹1,050 cr |
| Other income | ₹151 cr |
| Expenses | ₹1,085 cr |
| Operating profit | ₹-34 cr |
| Operating margin (%) | -3.28% |
| Interest | ₹46 cr |
| Depreciation | ₹124 cr |
| Profit before tax | ₹-53 cr |
| Tax | ₹13 cr |
| Net profit | ₹-66 cr |
| EPS (₹) | ₹-12.51 |
What to watch
- Whether operating margin moves back above -3.28%.
- Whether depreciation remains near the Rs 123.55 cr quarterly burden.
- Whether other income remains material relative to the Rs 52.77 cr loss before tax.