Q1FY27 profit conversion was weighed down by Rs 2.11 cr interest
Other income contributed meaningfully to pre-tax profit, while a 38.89% tax rate reduced the amount reaching net profit.
Filed 04 Aug 2026, 17:30 IST · after market close · NECCLTD (NECCLTD)
Key takeaways
- Interest of Rs 2.11 cr consumed a large part of the Rs 4.49 cr operating profit, leaving Rs 3.29 cr before tax.
- Other income of Rs 1.67 cr was a meaningful contributor to the Rs 3.29 cr pre-tax profit.
- A 38.89% tax rate reduced profit after tax to Rs 2.01 cr from Rs 3.29 cr before tax.
Interest weighed on operating-profit conversion
The standalone filing shows operating profit of Rs 4.49 cr, but interest expense of Rs 2.11 cr absorbed a substantial part of it. After depreciation of Rs 0.75 cr and other income of Rs 1.67 cr, profit before tax was Rs 3.29 cr.
Other income and tax shaped net profit
Other income was a meaningful component of the Rs 3.29 cr pre-tax profit, so earnings were not driven only by operations. The 38.89% tax rate further reduced profit after tax to Rs 2.01 cr, with EPS at Rs 0.18.
Results were filed after market close
NECCLTD filed its standalone Q1FY27 results after market close on 4 August 2026. With no quarter-on-quarter or year-on-year comparison in this release, the main read-through is the conversion of operating profit into pre-tax and net profit.
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 | ₹76 cr |
| Other income | ₹2 cr |
| Expenses | ₹71 cr |
| Operating profit | ₹4 cr |
| Operating margin (%) | 5.93% |
| Interest | ₹2 cr |
| Depreciation | ₹1 cr |
| Profit before tax | ₹3 cr |
| Tax | ₹1 cr |
| Net profit | ₹2 cr |
| EPS (₹) | ₹0.18 |
What to watch
- Operating margin against the Q1FY27 base of 5.93%.
- Interest expense against Rs 2.11 cr.
- The tax rate and other-income contribution relative to 38.89% and Rs 1.67 cr.