Mukand's Q1 profit was led by other income, not operations
Operating margin was just 0.53%, while the 4.75% tax rate also supported reported net profit.
Filed 12 Aug 2026, 11:50 IST · MUKANDLTD (MUKANDLTD)
Key takeaways
- Consolidated net profit of Rs 57.36 cr was driven mainly by Rs 105.04 cr of other income, while operating profit was only Rs 7.18 cr.
- Expenses nearly absorbed revenue, leaving operating margin at 0.53% before interest of Rs 34.07 cr and depreciation of Rs 17.93 cr.
- The 4.75% tax rate supported the conversion of Rs 60.22 cr of pre-tax profit into Rs 57.36 cr of net profit.
Other income carried the quarter
Mukand reported consolidated net profit of Rs 57.36 cr, but operating profit was only Rs 7.18 cr. Other income of Rs 105.04 cr was larger than profit before tax of Rs 60.22 cr, making the earnings mix heavily dependent on non-operating income.
Costs left little operating cushion
Expenses of Rs 1,355.03 cr were close to revenue of Rs 1,362.21 cr, leaving operating margin at 0.53%. Interest of Rs 34.07 cr and depreciation of Rs 17.93 cr added to the pressure below operating profit.
Low tax rate lifted profit conversion
Tax was Rs 2.86 cr, equivalent to a 4.75% tax rate. That kept the gap between profit before tax of Rs 60.22 cr and net profit of Rs 57.36 cr relatively narrow despite the weak operating contribution.
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 | ₹1,362 cr |
| Other income | ₹105 cr |
| Expenses | ₹1,355 cr |
| Operating profit | ₹7 cr |
| Operating margin (%) | 0.53% |
| Interest | ₹34 cr |
| Depreciation | ₹18 cr |
| Profit before tax | ₹60 cr |
| Tax | ₹3 cr |
| Net profit | ₹57 cr |
| EPS (₹) | ₹3.97 |
What to watch
- Whether operating margin improves from 0.53%.
- Whether operating profit rises from Rs 7.18 cr without a similar reliance on Rs 105.04 cr of other income.
- Whether the tax rate remains close to 4.75%.