HMT's operating margin plunges to -81.06% as revenue falls 59.50%
Expenses declined less than revenue, while zero tax helped narrow the consolidated net loss sequentially despite a deeper operating margin decline.
Filed 14 Aug 2026, 17:35 IST · after market close · HMT (HMT)
Key takeaways
- Consolidated operating margin fell 38.73 percentage points sequentially to -81.06% as revenue dropped faster than expenses.
- The consolidated net loss narrowed 22.00% sequentially to Rs 29.21 cr, helped by the tax rate moving 7.43 percentage points to 0.00%.
- Other income of Rs 13.37 cr could not offset the Rs 23.45 cr operating loss, leaving EPS at Rs -0.82.
Revenue fell faster than expenses
Consolidated revenue declined 59.50% sequentially, while expenses fell 48.49%, leaving costs relatively higher against the smaller revenue base. That mismatch drove the operating margin down 38.73 percentage points to -81.06%, even as the operating loss narrowed 22.45% to Rs 23.45 cr.
Zero tax softened the reported loss
The consolidated loss before tax narrowed 16.21% sequentially, but interest rose 1.32% to Rs 17.70 cr. Net loss improved more, narrowing 22.00%, as tax fell from Rs 2.59 cr in Q4FY26 to zero and the tax rate moved up 7.43 percentage points from a negative base to 0.00%. Other income fell 6.57% to Rs 13.37 cr and did not offset the operating loss, so the improvement in net profit was not driven by operations.
Results were filed after market close
HMT filed these consolidated results after market close on 14 Aug 2026. The immediate market reaction is therefore not part of this quarter's readout.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹29 cr | ₹71 cr | -59.50% |
| Other income | ₹13 cr | ₹14 cr | -6.57% |
| Expenses | ₹52 cr | ₹102 cr | -48.49% |
| Operating profit | ₹-23 cr | ₹-30 cr | +22.45% |
| Operating margin (%) | -81.06% | -42.33% | — |
| Interest | ₹18 cr | ₹17 cr | +1.32% |
| Depreciation | ₹1 cr | ₹1 cr | -2.05% |
| Profit before tax | ₹-29 cr | ₹-35 cr | +16.21% |
| Tax | ₹0 cr | ₹3 cr | -100.00% |
| Net profit | ₹-29 cr | ₹-37 cr | +22.00% |
| EPS (₹) | ₹-0.82 | ₹-1.05 | +21.90% |
What to watch
- Whether revenue moves up from Rs 28.93 cr next quarter.
- Whether operating margin improves from -81.06%.
- Whether interest remains near Rs 17.70 cr and tax stays at 0.00%.