Pakka's operating margin expands 4.12 points as Q1 revenue rises
Revenue grew faster than expenses, but higher interest and significant other income affected profit conversion.
Filed 14 Aug 2026, 15:48 IST · after market close · PAKKA (PAKKA)
Key takeaways
- Consolidated operating profit rose +68.87% QoQ as revenue growth of +15.54% outpaced expense growth of +10.32%.
- Operating margin expanded 4.12 percentage points QoQ to 13.05%, up from 8.93% in Q4FY26.
- Net profit increased +91.86% QoQ, but other income contributed 26.31% of pre-tax profit while the tax rate fell 5.45 percentage points.
Q1FY27 revenue created operating leverage
Consolidated revenue increased +15.54% QoQ to Rs 117.19 cr, while expenses grew a slower +10.32% to Rs 101.89 cr. That gap lifted operating profit +68.87% to Rs 15.30 cr and widened operating margin by 4.12 percentage points to 13.05%.
Lower tax supported profit conversion
Profit before tax rose +77.22% QoQ, despite interest expense increasing +26.49% to Rs 4.87 cr. Net profit grew +91.86% to Rs 5.89 cr, helped by the tax rate falling 5.45 percentage points to 29.86%. Other income accounted for 26.31% of pre-tax profit, so reported profit included a meaningful non-operating contribution.
Margin recovered from the previous quarter
The 13.05% operating margin in Q1FY27 was 4.12 percentage points above Q4FY26's 8.93%, marking a sequential improvement rather than another decline. EPS rose +89.71% QoQ to Rs 1.29, broadly tracking the increase in net profit.
Results were filed after market close
Pakka filed the consolidated Q1FY27 results after market close on 14 Aug 2026. The filing therefore provides the operating update before any subsequent trading-session response.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹117 cr | ₹101 cr | +15.54% |
| Other income | ₹2 cr | ₹4 cr | -39.29% |
| Expenses | ₹102 cr | ₹92 cr | +10.32% |
| Operating profit | ₹15 cr | ₹9 cr | +68.87% |
| Operating margin (%) | 13.05% | 8.93% | — |
| Interest | ₹5 cr | ₹4 cr | +26.49% |
| Depreciation | ₹4 cr | ₹4 cr | +2.91% |
| Profit before tax | ₹8 cr | ₹5 cr | +77.22% |
| Tax | ₹3 cr | ₹2 cr | +50.30% |
| Net profit | ₹6 cr | ₹3 cr | +91.86% |
| EPS (₹) | ₹1.29 | ₹0.68 | +89.71% |
What to watch
- Whether operating margin holds above 13.05% next quarter.
- Whether interest expense growth moderates from +26.49% QoQ.
- Whether other income remains below or above 26.31% of pre-tax profit.