Interest costs cut standalone profit sharply below operating profit
Operating profit was Rs 60.46 cr, but Rs 38.38 cr of interest reduced profit before tax to Rs 21.91 cr; the results were filed after market close.
Filed 12 Aug 2026, 21:29 IST · after market close · LAXMIINDIA (LAXMIINDIA)
Key takeaways
- Standalone operating profit of Rs 60.46 cr was reduced to Rs 21.91 cr of profit before tax after Rs 38.38 cr of interest.
- The 64.67% operating margin came before interest costs, which were more than half of operating profit at Rs 38.38 cr.
- Other income of Rs 0.43 cr was not a material contributor to the Rs 21.91 cr standalone profit before tax.
Operating profit did not translate into comparable pre-tax profit
The standalone quarter produced Rs 60.46 cr of operating profit from Rs 93.5 cr of revenue, but profit before tax was only Rs 21.91 cr. Interest of Rs 38.38 cr was the main drag, while depreciation added Rs 0.60 cr of cost. This makes financing costs the key factor separating operating performance from reported profit.
High operating margin, limited support from non-operating income
The 64.67% operating margin indicates that expenses of Rs 33.04 cr consumed a relatively small share of revenue. However, the margin does not capture the Rs 38.38 cr interest burden that followed operating profit. Other income was Rs 0.43 cr, so non-operating income did not materially support the Rs 21.91 cr pre-tax result.
Tax reduced pre-tax profit by Rs 5.34 cr
Tax of Rs 5.34 cr at a 24.36% rate brought standalone net profit to Rs 16.57 cr, with EPS of Rs 3.17. The results were filed after market close, and there is no market reaction to assess yet.
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 | ₹94 cr |
| Other income | ₹0 cr |
| Expenses | ₹33 cr |
| Operating profit | ₹60 cr |
| Operating margin (%) | 64.67% |
| Interest | ₹38 cr |
| Depreciation | ₹1 cr |
| Profit before tax | ₹22 cr |
| Tax | ₹5 cr |
| Net profit | ₹17 cr |
| EPS (₹) | ₹3.17 |
What to watch
- Whether standalone operating margin holds at or above 64.67%.
- Whether interest remains close to or below Rs 38.38 cr.
- Whether other income stays immaterial relative to profit before tax of Rs 21.91 cr.