Interest and depreciation sharply narrowed PAVNAIND's Q1 profit conversion
Operating profit of Rs 7.82 cr fell to Rs 1.52 cr before tax, with a 42.38% tax rate leaving Rs 0.88 cr of net profit.
Filed 13 Aug 2026, 17:53 IST · after market close · PAVNAIND (PAVNAIND)
Key takeaways
- Consolidated operating profit of Rs 7.82 cr translated into only Rs 0.88 cr of net profit after interest and depreciation.
- Interest of Rs 2.35 cr and depreciation of Rs 4.18 cr absorbed much of operating profit, leaving profit before tax at Rs 1.52 cr.
- The 8.51% operating margin was reduced further by a 42.38% tax rate, while other income was only Rs 0.24 cr.
Operating profit did not translate into earnings
PAVNAIND reported consolidated operating profit of Rs 7.82 cr on revenue of Rs 91.88 cr, a conversion that weakened materially below the operating line. Profit before tax was only Rs 1.52 cr, leaving net profit at Rs 0.88 cr after tax.
Interest and depreciation absorbed operating profit
Interest expense of Rs 2.35 cr and depreciation of Rs 4.18 cr together consumed a large part of operating profit before tax. Other income contributed only Rs 0.24 cr, so it did not materially offset those charges. The 42.38% tax rate further reduced the reported profit.
Results were filed after market close
The consolidated Q1FY27 results were filed after market close on 13 August 2026, so the stock's immediate response is not covered here. With no comparison or management commentary supplied, the key read-through is the gap between the 8.51% operating margin and the much lower net-profit conversion.
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 | ₹92 cr |
| Other income | ₹0 cr |
| Expenses | ₹84 cr |
| Operating profit | ₹8 cr |
| Operating margin (%) | 8.51% |
| Interest | ₹2 cr |
| Depreciation | ₹4 cr |
| Profit before tax | ₹2 cr |
| Tax | ₹1 cr |
| Net profit | ₹1 cr |
| EPS (₹) | ₹0.06 |
What to watch
- Whether operating margin holds above 8.51%.
- Whether interest expense stays below Rs 2.35 cr.
- Whether depreciation remains near Rs 4.18 cr and allows more operating profit to reach profit before tax.