PPAP’s Rs 0.87 cr profit was absorbed by interest and depreciation
Other income of Rs 2.11 cr exceeded profit before tax, highlighting the limited contribution from core operations to reported earnings.
Filed 07 Aug 2026, 16:47 IST · after market close · PPAP (PPAP)
Key takeaways
- PPAP’s consolidated operating profit of Rs 12.40 cr converted into only Rs 0.87 cr of net profit after Rs 4.30 cr interest and Rs 9.05 cr depreciation.
- Other income of Rs 2.11 cr exceeded the Rs 1.16 cr consolidated profit before tax, making reported earnings quality a key issue.
- The consolidated operating margin was 7.93%, while the 25.17% tax rate applied to a very thin pre-tax profit base.
Operating profit did not reach the bottom line
PPAP’s consolidated revenue generated Rs 12.40 cr of operating profit, but interest and depreciation together absorbed most of that operating profit. This left profit before tax at Rs 1.16 cr and net profit at Rs 0.87 cr.
Other income outweighed reported pre-tax profit
Other income was Rs 2.11 cr, higher than the quarter’s Rs 1.16 cr profit before tax. That means financing and non-cash depreciation charges more than offset operating profit before other income was included. The 25.17% tax rate was applied to an already narrow pre-tax profit base.
Results were filed after market close
The consolidated results were filed at 16:47 IST on 7 August 2026, after market close. There is no post-results market reaction to assess yet.
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 | ₹156 cr |
| Other income | ₹2 cr |
| Expenses | ₹144 cr |
| Operating profit | ₹12 cr |
| Operating margin (%) | 7.93% |
| Interest | ₹4 cr |
| Depreciation | ₹9 cr |
| Profit before tax | ₹1 cr |
| Tax | ₹0 cr |
| Net profit | ₹1 cr |
| EPS (₹) | ₹0.61 |
What to watch
- Whether consolidated operating margin moves above or below 7.93%.
- Whether interest remains near Rs 4.30 cr and depreciation near Rs 9.05 cr.
- Whether other income remains above Rs 2.11 cr.