Tax credit masks Nippobattery’s near-zero operating result
Expenses nearly matched consolidated revenue, while a Rs 5.23 cr tax credit more than offset the Rs 3.22 cr pre-tax loss.
Filed 14 Aug 2026, 15:23 IST · NIPPOBATRY (NIPPOBATRY)
Key takeaways
- Consolidated expenses of Rs 116.02 cr nearly absorbed revenue of Rs 116.14 cr, leaving a 0.11% operating margin.
- A Rs 5.23 cr tax credit turned a Rs 3.22 cr pre-tax loss into Rs 2.01 cr net profit.
- Interest of Rs 0.88 cr and depreciation of Rs 3.36 cr outweighed the Rs 0.12 cr operating profit.
Revenue was almost fully absorbed by costs
Consolidated revenue of Rs 116.14 cr was nearly matched by expenses of Rs 116.02 cr, leaving only Rs 0.12 cr of operating profit. The resulting 0.11% operating margin shows that the quarter generated almost no operating cushion before interest and depreciation.
Reported profit was driven by a tax credit
Interest of Rs 0.88 cr and depreciation of Rs 3.36 cr pushed profit before tax to a loss of Rs 3.22 cr despite the small operating surplus. A Rs 5.23 cr tax credit, reflected in a 162.42% tax rate, lifted net profit to Rs 2.01 cr; other income of Rs 0.90 cr was not enough to offset the other charges.
Operating earnings are the key quality test
The Rs 2.85 EPS does not reflect operating earnings alone because the tax credit was larger than the pre-tax loss. The next reported quarter will show whether operating profit can move above Rs 0.12 cr and whether expenses remain close to revenue.
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 | ₹116 cr |
| Other income | ₹1 cr |
| Expenses | ₹116 cr |
| Operating profit | ₹0 cr |
| Operating margin (%) | 0.11% |
| Interest | ₹1 cr |
| Depreciation | ₹3 cr |
| Profit before tax | ₹-3 cr |
| Tax | ₹-5 cr |
| Net profit | ₹2 cr |
| EPS (₹) | ₹2.85 |
What to watch
- Whether operating profit rises above Rs 0.12 cr and the 0.11% margin improves.
- Whether expenses remain close to Rs 116.14 cr of revenue.
- How a Rs 5.23 cr tax credit compares with operating earnings in the next quarter.