Interest and depreciation turn operating profit into a Q1 loss
Consolidated operating margin was 80.26%, but Rs 131.32 cr of interest and Rs 76.54 cr of depreciation pushed profit before tax to a Rs 6.91 cr loss.
Filed 11 Sep 2026, 15:53 IST · after market close · HORIZONIND (HORIZONIND)
Key takeaways
- Consolidated operating profit of Rs 160.96 cr did not translate into earnings, with net profit at a loss of Rs 11.63 cr.
- Interest of Rs 131.32 cr and depreciation of Rs 76.54 cr outweighed operating profit, leaving profit before tax at a loss of Rs 6.91 cr.
- Other income of Rs 39.99 cr did not offset below-operating-line charges, while tax expense of Rs 4.72 cr produced a reported tax rate of -68.31%.
Operating surplus masks the earnings loss
Consolidated revenue of Rs 200.55 cr was accompanied by expenses of Rs 39.59 cr, producing operating profit of Rs 160.96 cr and an 80.26% operating margin. That operating surplus was not enough to cover the charges below operating profit. The result was a net loss of Rs 11.63 cr despite the high reported operating margin.
Interest and depreciation drove the loss
Interest of Rs 131.32 cr and depreciation of Rs 76.54 cr consumed more than the operating profit. Other income of Rs 39.99 cr provided some offset but did not prevent a pre-tax loss of Rs 6.91 cr, making profit quality dependent on a non-operating contribution. Tax expense of Rs 4.72 cr further reduced net profit and resulted in a negative reported tax rate of -68.31%.
Results were filed after market close
The consolidated results were filed after market close on 11 Sep 2026. There is no post-results market reaction to assess in this release.
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 | ₹201 cr |
| Other income | ₹40 cr |
| Expenses | ₹40 cr |
| Operating profit | ₹161 cr |
| Operating margin (%) | 80.26% |
| Interest | ₹131 cr |
| Depreciation | ₹77 cr |
| Profit before tax | ₹-7 cr |
| Tax | ₹5 cr |
| Net profit | ₹-12 cr |
| EPS (₹) | ₹-0.04 |
What to watch
- Whether operating profit remains above Rs 160.96 cr against revenue of Rs 200.55 cr.
- The next quarter's interest charge relative to Rs 131.32 cr.
- Whether net profit moves out of the Rs 11.63 cr loss despite other income of Rs 39.99 cr.