IGARASHI's Q1 profit conversion was weighed down by depreciation and interest
Standalone operating margin was 9.77%, while a 5.45% tax rate supported net profit of Rs 6.77 cr.
Filed 06 Aug 2026, 12:43 IST · IGARASHI (IGARASHI)
Key takeaways
- IGARASHI reported standalone net profit of Rs 6.77 cr in Q1FY27, with EPS of Rs 2.15.
- Depreciation of Rs 15.70 cr and interest of Rs 2.63 cr reduced operating profit of Rs 24.52 cr to profit before tax of Rs 7.16 cr.
- The 5.45% tax rate supported reported profit, while other income contributed Rs 0.97 cr to profit before tax.
Operating profit did not fully flow through
IGARASHI's standalone operating profit of Rs 24.52 cr was reduced by Rs 15.70 cr of depreciation and Rs 2.63 cr of interest before reaching profit before tax of Rs 7.16 cr. Net profit was Rs 6.77 cr, showing the gap between operating earnings and reported profit after these charges.
Low tax rate supported reported earnings
The tax charge was Rs 0.39 cr, implying a tax rate of 5.45%, which provided support to net profit. Other income of Rs 0.97 cr also formed part of profit before tax, so the quarter's earnings were not generated entirely by operating activity.
Q1 operating margin sets the first benchmark
The standalone operating margin was 9.77% on revenue of Rs 250.87 cr. With no sequential or year-on-year comparison in this release, the next reported quarter will show whether the 9.77% margin is sustained.
Q1FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹251 cr |
| Other income | ₹1 cr |
| Expenses | ₹226 cr |
| Operating profit | ₹25 cr |
| Operating margin (%) | 9.77% |
| Interest | ₹3 cr |
| Depreciation | ₹16 cr |
| Profit before tax | ₹7 cr |
| Tax | ₹0 cr |
| Net profit | ₹7 cr |
| EPS (₹) | ₹2.15 |
What to watch
- Whether operating margin moves from the Q1FY27 mark of 9.77% next quarter.
- Whether depreciation remains near Rs 15.70 cr and interest near Rs 2.63 cr.
- Whether the tax rate stays close to 5.45%.