Pace Digitek trails telecom peers on operating margin in Q1FY27
Other income matched interest expense at Rs 28.34 cr, while consolidated net profit reached Rs 62.51 cr.
Filed 05 Aug 2026, 18:01 IST · after market close · Pace Digitek Ltd (PACEDIGITK)
Key takeaways
- Consolidated operating margin of 15.50% was 3.19 percentage points below the 18.69% median for nine reporting telecom peers.
- Other income of Rs 28.34 cr matched interest expense, making non-operating items important to the Rs 81.63 cr pre-tax profit.
- Consolidated net profit of Rs 62.51 cr translated to EPS of Rs 2.84 after a 23.43% tax rate.
Price around the results
Operating margin lags the telecom peer set
Pace Digitek’s Q1FY27 consolidated operating margin was 15.50%, leaving it 3.19 percentage points below the 18.69% median for nine telecom companies that have reported. This places the company fifth from the bottom in the peer comparison.
Non-operating items were material to reported profit
Expenses of Rs 469.30 cr absorbed most of the Rs 555.36 cr revenue, leaving Rs 86.07 cr of operating profit. Other income matched interest expense at Rs 28.34 cr each, so the reported Rs 81.63 cr pre-tax profit included a sizeable non-operating component. Tax at 23.43% reduced this to Rs 62.51 cr of consolidated net profit.
Results were filed after market close
The results were filed after market close on 05 Aug 2026, so there is no market reaction to assess yet. The next comparison to track is whether the 15.50% operating margin moves closer to the 18.69% telecom peer median.
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 | ₹555 cr |
| Other income | ₹28 cr |
| Expenses | ₹469 cr |
| Operating profit | ₹86 cr |
| Operating margin (%) | 15.50% |
| Interest | ₹28 cr |
| Depreciation | ₹4 cr |
| Profit before tax | ₹82 cr |
| Tax | ₹19 cr |
| Net profit | ₹63 cr |
| EPS (₹) | ₹2.84 |
Operating margin of 15.50% compares with a Telecommunication sector median of 18.69% across 9 peers that have reported Q1FY27.
What to watch
- Whether operating margin moves above 15.50% and toward the 18.69% peer median.
- Whether other income remains at Rs 28.34 cr relative to interest expense.
- Whether the tax rate stays around 23.43%.