JHS returns to profit, but tax credit masks thin pre-tax earnings
Expenses fell faster than revenue, lifting operating margin 11.80 percentage points; other income was 150.00% of pre-tax profit.
Filed 11 Aug 2026, 17:09 IST · after market close · JHS (JHS)
Key takeaways
- Consolidated operating margin recovered 11.80 percentage points QoQ to 6.82% as expenses fell 17.51%, faster than revenue's 7.09% decline.
- Net profit of Rs 1.09 cr was helped by a Rs 1.03 cr tax credit, while profit before tax was only Rs 0.06 cr.
- Revenue fell 7.09% QoQ to Rs 30.38 cr, but JHS moved from a Rs 3.57 cr loss to a Rs 1.09 cr profit.
Revenue declined, but operating profit recovered
JHS reported consolidated Q1FY27 revenue of Rs 30.38 cr, down 7.09% QoQ. The lower sales base still produced operating profit of Rs 2.07 cr, reversing the Rs 1.63 cr operating loss in Q4FY26.
Lower expenses drove the margin rebound
Expenses fell 17.51% QoQ, more sharply than revenue, which drove the 11.80-percentage-point improvement in operating margin to 6.82%. Interest expense rose 27.27%, while depreciation declined 2.15%, partly offsetting the benefit from lower operating costs.
Net profit quality was weak before tax effects
Other income fell 87.67% QoQ to Rs 0.09 cr, yet it amounted to 150.00% of pre-tax profit because PBT was only Rs 0.06 cr. The Rs 1.03 cr tax credit, reflected in a tax rate of -1664.40%, lifted net profit to Rs 1.09 cr despite the thin pre-tax result.
Results were filed after market close
JHS filed the consolidated results after market close on 11 August 2026. There is therefore no post-results stock reaction to assess yet.
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 | ₹30 cr | ₹33 cr | -7.09% |
| Other income | ₹0 cr | ₹1 cr | -87.67% |
| Expenses | ₹28 cr | ₹34 cr | -17.51% |
| Operating profit | ₹2 cr | ₹-2 cr | — |
| Operating margin (%) | 6.82% | -4.98% | — |
| Interest | ₹0 cr | ₹0 cr | +27.27% |
| Depreciation | ₹2 cr | ₹2 cr | -2.15% |
| Profit before tax | ₹0 cr | ₹-3 cr | — |
| Tax | ₹-1 cr | ₹1 cr | — |
| Net profit | ₹1 cr | ₹-4 cr | — |
| EPS (₹) | ₹0.12 | ₹-0.42 | — |
What to watch
- Whether operating margin holds above 6.82% in the next quarter.
- Whether expenses continue to fall faster than revenue, after declines of 17.51% and 7.09% respectively.
- Whether net profit remains supported by a tax benefit after the tax rate reached -1664.40%.