Interest and depreciation left Khadim with only Rs 0.71 cr of pre-tax profit
Other income of Rs 5.83 cr exceeded profit before tax, while the company reported a 10.05% operating margin.
Filed 07 Aug 2026, 14:38 IST · KHADIM (KHADIM)
Key takeaways
- Consolidated operating profit of Rs 7.83 cr was largely absorbed by interest and depreciation, leaving profit before tax at Rs 0.71 cr.
- Other income of Rs 5.83 cr exceeded profit before tax, making reported earnings quality dependent on non-operating income.
- Consolidated net profit was Rs 0.52 cr, with EPS of Rs 0.28.
Operating profit was largely consumed below the operating line
Khadim reported consolidated operating profit of Rs 7.83 cr on revenue of Rs 77.84 cr, but interest of Rs 6.36 cr and depreciation of Rs 6.58 cr left only Rs 0.71 cr before tax. Net profit was Rs 0.52 cr, with EPS of Rs 0.28.
Other income was larger than reported pre-tax profit
Other income stood at Rs 5.83 cr, exceeding profit before tax of Rs 0.71 cr. This means the quarter's reported profit was not supported solely by operating earnings. The tax rate was 26.17%.
The key monitor is whether operating earnings can cover fixed charges
The consolidated operating margin was 10.05%, but the gap between operating profit and the combined burden of interest and depreciation kept pre-tax profit close to breakeven. With no sequential or year-on-year comparison provided, the quarter's main read-through is the limited conversion of operating profit into earnings.
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 | ₹78 cr |
| Other income | ₹6 cr |
| Expenses | ₹70 cr |
| Operating profit | ₹8 cr |
| Operating margin (%) | 10.05% |
| Interest | ₹6 cr |
| Depreciation | ₹7 cr |
| Profit before tax | ₹1 cr |
| Tax | ₹0 cr |
| Net profit | ₹1 cr |
| EPS (₹) | ₹0.28 |
What to watch
- Whether operating margin holds above 10.05%.
- Whether operating profit can cover the reported Rs 6.36 cr interest and Rs 6.58 cr depreciation.
- Whether other income remains below the reported Rs 5.83 cr level and profit before tax improves from Rs 0.71 cr.