Interest and depreciation left little profit before tax despite positive operating profit
The standalone business posted a 7.95% operating margin, but Rs 4.25 cr of interest and Rs 7.99 cr of depreciation sharply reduced earnings below the operating line.
Filed 10 Aug 2026, 14:58 IST · LIBERTSHOE (LIBERTSHOE)
Key takeaways
- Interest of Rs 4.25 cr and depreciation of Rs 7.99 cr reduced operating profit of Rs 13.50 cr to profit before tax of Rs 1.14 cr.
- A 40.02% tax rate further reduced the quarter's profit before tax to net profit of Rs 0.68 cr.
- Other income was negative at Rs -0.12 cr, so it did not support standalone earnings in Q1FY27.
Operating profit did not translate into meaningful pre-tax earnings
Liberty Shoes reported standalone operating profit of Rs 13.50 cr on revenue of Rs 169.86 cr, implying a 7.95% operating margin. Interest and depreciation together absorbed most of operating profit, leaving profit before tax at Rs 1.14 cr. This shows the pressure was concentrated below the operating line rather than from other income.
Negative other income and tax added to the earnings drag
Other income was negative at Rs -0.12 cr, providing no support to pre-tax profit. Tax of Rs 0.46 cr represented 40.02% of profit before tax, reducing net profit to Rs 0.68 cr. Basic EPS was Rs 0.40 for the standalone quarter.
No comparison or multi-quarter direction is available in the reported set
The reported results do not include a year-on-year or sequential comparison, and there is no trend history to establish whether the 7.95% operating margin is improving or declining. The quarter therefore needs to be read mainly through the gap between operating profit of Rs 13.50 cr and pre-tax profit of Rs 1.14 cr.
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 | ₹170 cr |
| Other income | ₹-0 cr |
| Expenses | ₹156 cr |
| Operating profit | ₹14 cr |
| Operating margin (%) | 7.95% |
| Interest | ₹4 cr |
| Depreciation | ₹8 cr |
| Profit before tax | ₹1 cr |
| Tax | ₹0 cr |
| Net profit | ₹1 cr |
| EPS (₹) | ₹0.40 |
What to watch
- Whether operating margin holds above 7.95%.
- Whether interest remains below Rs 4.25 cr as a share of operating profit.
- Whether tax stays near 40.02% of profit before tax.