KUANTUM's Q1 profit was squeezed by interest, depreciation and tax
The standalone filing shows Rs 40.1 cr of operating profit narrowing to Rs 6.23 cr of net profit after Rs 14.53 cr interest and a 42.15% tax rate.
Filed 12 Aug 2026, 16:19 IST · after market close · KUANTUM (KUANTUM)
Key takeaways
- A Rs 14.53 cr interest charge and Rs 17.65 cr depreciation reduced operating profit of Rs 40.1 cr to profit before tax of Rs 10.77 cr.
- Other income of Rs 2.85 cr was material against profit before tax of Rs 10.77 cr, making reported profit quality an important consideration.
- A 42.15% tax rate further reduced profit after tax to Rs 6.23 cr, or EPS of Rs 0.71.
Operating profit narrowed sharply before tax
KUANTUM reported standalone revenue of Rs 303.75 cr and operating profit of Rs 40.1 cr in Q1FY27, implying a 13.2% operating margin. Interest of Rs 14.53 cr and depreciation of Rs 17.65 cr together consumed much of operating profit, leaving profit before tax at Rs 10.77 cr.
Other income and tax shaped reported earnings
Other income of Rs 2.85 cr was significant relative to profit before tax of Rs 10.77 cr, so operating earnings did not fully explain the reported pre-tax result. The 42.15% tax rate reduced profit after tax to Rs 6.23 cr and EPS to Rs 0.71.
No market reaction yet
The standalone results were filed after market close on 12 August 2026. The stock's response is therefore not covered 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 | ₹304 cr |
| Other income | ₹3 cr |
| Expenses | ₹264 cr |
| Operating profit | ₹40 cr |
| Operating margin (%) | 13.20% |
| Interest | ₹15 cr |
| Depreciation | ₹18 cr |
| Profit before tax | ₹11 cr |
| Tax | ₹5 cr |
| Net profit | ₹6 cr |
| EPS (₹) | ₹0.71 |
What to watch
- Whether operating margin remains above 13.2%.
- Whether interest stays below Rs 14.53 cr as a charge against operating profit.
- Whether the tax rate moves below 42.15%.