Low tax rate keeps standalone net profit close to pre-tax profit
The Rs 0.04 cr tax charge resulted in a 1.29% tax rate, while operating costs left the company with a 12.01% margin.
Filed 12 Aug 2026, 15:29 IST · INDOUS (INDOUS)
Key takeaways
- The Rs 29.03 cr expense base consumed most of Rs 32.99 cr revenue, leaving a 12.01% operating margin.
- Interest of Rs 0.74 cr and depreciation of Rs 0.27 cr reduced operating profit of Rs 3.96 cr to Rs 3.08 cr profit before tax.
- A Rs 0.04 cr tax charge produced a 1.29% tax rate, keeping net profit at Rs 3.04 cr, close to pre-tax profit.
Q1FY27 revenue conversion was constrained by the expense base
Standalone revenue of Rs 32.99 cr translated into Rs 3.96 cr of operating profit after Rs 29.03 cr of expenses. That cost structure left operating margin at 12.01%, making expense control central to the quarter's operating outcome.
Interest and depreciation reduced the operating-to-pre-tax conversion
Interest of Rs 0.74 cr was the larger deduction below operating profit, while depreciation added another Rs 0.27 cr charge. Together, they brought profit before tax down to Rs 3.08 cr from operating profit of Rs 3.96 cr.
Reported profit quality was supported by a minimal tax charge
The Rs 0.04 cr tax charge resulted in a 1.29% tax rate, allowing Rs 3.04 cr of net profit to be retained from Rs 3.08 cr of pre-tax profit. Other income of Rs 0.12 cr was small relative to pre-tax profit, so non-operating income was not a major support for earnings.
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 | ₹33 cr |
| Other income | ₹0 cr |
| Expenses | ₹29 cr |
| Operating profit | ₹4 cr |
| Operating margin (%) | 12.01% |
| Interest | ₹1 cr |
| Depreciation | ₹0 cr |
| Profit before tax | ₹3 cr |
| Tax | ₹0 cr |
| Net profit | ₹3 cr |
| EPS (₹) | ₹1.51 |
What to watch
- Whether operating margin moves from the Q1FY27 level of 12.01%.
- Whether the tax rate remains near 1.29% in the next reported quarter.
- Whether interest expense stays below the Q1FY27 level of Rs 0.74 cr.