MAGNUM slips into Rs 8.28 cr Q1 loss as fixed charges erase operating profit
Operating profit covered neither Rs 9.20 cr of interest nor Rs 10.83 cr of depreciation, while a Rs 4.29 cr tax expense widened the loss.
Filed 14 Aug 2026, 14:05 IST · MAGNUM (MAGNUM)
Key takeaways
- MAGNUM's consolidated operating profit of Rs 15.70 cr was not enough to absorb Rs 9.20 cr of interest and Rs 10.83 cr of depreciation, resulting in a Rs 8.28 cr net loss.
- A Rs 4.29 cr tax expense was reported despite a Rs 3.99 cr pre-tax loss, producing a reported tax rate of -107.29%.
- Other income of Rs 0.34 cr was too small to materially offset the financing, depreciation and tax burden in Q1FY27.
Operating profit did not cover the fixed-cost burden
MAGNUM reported a consolidated net loss of Rs 8.28 cr in Q1FY27, despite generating Rs 15.70 cr of operating profit. Interest of Rs 9.20 cr and depreciation of Rs 10.83 cr together exceeded operating profit, leaving profit before tax at a loss of Rs 3.99 cr.
Tax expense further weakened reported earnings
The company recorded a Rs 4.29 cr tax expense despite a pre-tax loss, resulting in a reported tax rate of -107.29%. Other income was only Rs 0.34 cr, so non-operating income did not provide a meaningful offset to the financing, depreciation and tax charges.
The next quarter will test operating conversion
With no sequential or year-on-year comparison provided, the key read-through is whether revenue can translate into a higher operating margin than the reported 12.73%. The relationship between operating profit and the Rs 9.20 cr interest charge will remain central to the path from operating profit to net earnings.
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 | ₹123 cr |
| Other income | ₹0 cr |
| Expenses | ₹108 cr |
| Operating profit | ₹16 cr |
| Operating margin (%) | 12.73% |
| Interest | ₹9 cr |
| Depreciation | ₹11 cr |
| Profit before tax | ₹-4 cr |
| Tax | ₹4 cr |
| Net profit | ₹-8 cr |
| EPS (₹) | ₹-1.21 |
What to watch
- Whether operating margin moves from the reported 12.73% in the next quarter.
- Whether interest remains close to or below Rs 9.20 cr relative to operating profit.
- Whether tax expense remains despite the reported Rs 3.99 cr pre-tax loss.