Khaitan's Q1 profit exceeded pre-tax earnings on a negative tax expense
The consolidated operating margin was 6.44%, while other income was too small to materially drive the Rs 2.44 cr net profit.
Filed 31 Jul 2026, 17:40 IST · after market close · KHAITANLTD (KHAITANLTD)
Key takeaways
- Consolidated Q1FY27 net profit was Rs 2.44 cr, slightly above profit before tax of Rs 2.4 cr because tax was Rs -0.03 cr.
- Operating profit of Rs 2.67 cr left a limited buffer over interest expense of Rs 0.31 cr.
- Revenue of Rs 41.45 cr translated into a 6.44% operating margin, with other income of only Rs 0.13 cr.
Negative tax expense lifted reported profit
Consolidated net profit of Rs 2.44 cr was slightly higher than profit before tax of Rs 2.4 cr because the reported tax expense was negative at Rs -0.03 cr. This makes the reported tax rate of -1.4% an important part of the quarter's profit outcome.
Operating profit had a limited buffer over interest
Operating profit of Rs 2.67 cr covered interest expense of Rs 0.31 cr, but the buffer was modest relative to operating earnings. Other income was Rs 0.13 cr, so the quarter's pre-tax result was driven mainly by operations rather than non-operating income.
No sequential or year-on-year read-through yet
The quarter's 6.44% operating margin provides the starting point for tracking profitability in subsequent reported quarters. There is no sequential or year-on-year comparison in this release, so the direction of revenue, costs and margins cannot yet be established.
Results were filed after market close
The consolidated results were filed after market close on 31 July 2026. No post-results stock reaction is covered here, so the market's response cannot yet be assessed against the company's past results.
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 | ₹41 cr |
| Other income | ₹0 cr |
| Expenses | ₹39 cr |
| Operating profit | ₹3 cr |
| Operating margin (%) | 6.44% |
| Interest | ₹0 cr |
| Depreciation | ₹0 cr |
| Profit before tax | ₹2 cr |
| Tax | ₹-0 cr |
| Net profit | ₹2 cr |
| EPS (₹) | ₹5.13 |
What to watch
- Whether operating margin holds above 6.44%.
- Whether net profit remains above profit before tax of Rs 2.4 cr without a negative tax expense.
- Whether operating profit of Rs 2.67 cr continues to cover interest expense of Rs 0.31 cr.