Interest and depreciation cut Parag Milk's operating profit to Rs 29.29 cr PBT
The consolidated quarter ended with Rs 22.05 cr net profit, while other income contributed little to pre-tax earnings.
Filed 06 Aug 2026, 22:41 IST · after market close · PARAGMILK (PARAGMILK)
Key takeaways
- Consolidated operating profit of Rs 68.25 cr converted to Rs 29.29 cr of pre-tax profit after Rs 21.9 cr interest and Rs 18.47 cr depreciation.
- Other income of Rs 1.41 cr did not materially support the quarter's pre-tax earnings.
- The 7.23% operating margin made financing and depreciation the central earnings-conversion issue in Q1FY27.
Operating profit faced a heavy below-the-line drag
The Rs 68.25 cr operating profit converted to Rs 29.29 cr of pre-tax profit after Rs 21.9 cr interest and Rs 18.47 cr depreciation. This makes financing cost and asset-related charges the main explanation for the gap between operating and pre-tax earnings. Other income of Rs 1.41 cr was too small to change that picture.
Profit quality rests mainly on operations
Net profit of Rs 22.05 cr followed a 24.72% tax rate, with no meaningful support from other income. The 7.23% operating margin therefore remains the key operating measure to track alongside interest expense, rather than relying on non-operating income to support earnings.
Results were filed after market close
Parag Milk's consolidated Q1FY27 results were filed after market close on 6 August 2026. There is therefore no immediate stock reaction to assess against the company's past post-results trading pattern.
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 | ₹945 cr |
| Other income | ₹1 cr |
| Expenses | ₹876 cr |
| Operating profit | ₹68 cr |
| Operating margin (%) | 7.23% |
| Interest | ₹22 cr |
| Depreciation | ₹18 cr |
| Profit before tax | ₹29 cr |
| Tax | ₹7 cr |
| Net profit | ₹22 cr |
| EPS (₹) | ₹1.76 |
What to watch
- Whether operating margin holds above 7.23% in the next quarter.
- Whether interest expense falls from Rs 21.9 cr relative to operating profit.
- Whether other income remains a minor contributor from the current Rs 1.41 cr.