Interest and depreciation sharply narrowed the conversion of operating profit
Standalone operating profit was Rs 9.60 cr, but profit before tax was only Rs 1.41 cr after Rs 4.65 cr of interest and Rs 3.86 cr of depreciation.
Filed 12 Aug 2026, 14:18 IST · LOKESHMACH (LOKESHMACH)
Key takeaways
- Standalone Q1FY27 operating profit of Rs 9.60 cr was reduced by interest of Rs 4.65 cr and depreciation of Rs 3.86 cr before tax.
- Net profit was Rs 1.01 cr on profit before tax of Rs 1.41 cr, with tax taking Rs 0.40 cr.
- Other income of Rs 0.32 cr was a modest contributor to pre-tax profit, so reported earnings were mainly shaped by operating profit and financing costs.
Operating profit did not carry through to earnings
LOKESHMACH reported standalone revenue of Rs 55.46 cr and operating profit of Rs 9.60 cr in Q1FY27. The gap between operating profit and profit before tax reflects the combined burden of Rs 4.65 cr in interest and Rs 3.86 cr in depreciation. Net profit was consequently Rs 1.01 cr.
Financing costs were central to the quarter
Interest of Rs 4.65 cr was a major charge below operating profit, while depreciation added a further Rs 3.86 cr cost. Other income was Rs 0.32 cr against profit before tax of Rs 1.41 cr, so it did not materially change the earnings picture. Tax was Rs 0.40 cr at a reported tax rate of 28.52%.
No comparison or market reaction is available for this quarter
The reported results have no year-on-year or sequential comparison in the supplied data, so the quarter cannot be placed in a growth or margin trend. There is also no post-results stock reaction history to compare with the current filing.
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 | ₹55 cr |
| Other income | ₹0 cr |
| Expenses | ₹46 cr |
| Operating profit | ₹10 cr |
| Operating margin (%) | 17.32% |
| Interest | ₹5 cr |
| Depreciation | ₹4 cr |
| Profit before tax | ₹1 cr |
| Tax | ₹0 cr |
| Net profit | ₹1 cr |
| EPS (₹) | ₹0.49 |
What to watch
- Whether operating profit remains above Rs 9.60 cr in the next reported quarter.
- Whether interest stays below Rs 4.65 cr.
- Whether profit before tax continues to convert into net profit above Rs 1.01 cr.