Interest left KALYANI with only Rs 0.55 cr before tax in Q1FY27
Other income of Rs 0.52 cr was nearly as large as pre-tax profit, while the standalone operating margin was 2.43%.
Filed 13 Aug 2026, 17:28 IST · after market close · KALYANI (KALYANI)
Key takeaways
- Interest of Rs 1.95 cr absorbed most of the Rs 2.07 cr operating profit, leaving Rs 0.55 cr of standalone pre-tax profit.
- Other income of Rs 0.52 cr was nearly as large as pre-tax profit, making reported earnings quality a key issue.
- Standalone operating margin was only 2.43% in Q1FY27, with the results filed after market close.
Finance costs consumed the operating profit
KALYANI’s standalone operating margin of 2.43% left little room below the operating line. Interest of Rs 1.95 cr absorbed most of the Rs 2.07 cr operating profit, and depreciation of Rs 0.07 cr further reduced pre-tax profit to Rs 0.55 cr. Net profit was therefore only Rs 0.41 cr.
Other income was material to reported profit
Other income of Rs 0.52 cr was nearly as large as the Rs 0.55 cr pre-tax profit, so the reported earnings were materially supported outside operations. The 25.3% tax rate was not the main factor shaping the gap between pre-tax profit and net profit.
Results were filed after market close
The standalone results were filed after market close on 13 August 2026. There is no immediate market reaction to assess in this note.
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 | ₹85 cr |
| Other income | ₹1 cr |
| Expenses | ₹83 cr |
| Operating profit | ₹2 cr |
| Operating margin (%) | 2.43% |
| Interest | ₹2 cr |
| Depreciation | ₹0 cr |
| Profit before tax | ₹1 cr |
| Tax | ₹0 cr |
| Net profit | ₹0 cr |
| EPS (₹) | ₹4.13 |
What to watch
- Whether operating margin moves above or below 2.43% next quarter.
- Whether interest remains close to the Rs 2.07 cr operating profit.
- Whether other income remains near Rs 0.52 cr against pre-tax profit of Rs 0.55 cr.