RACE's 1.87% operating margin leaves little room after interest
Consolidated operating profit of Rs 3.58 cr was partly absorbed by Rs 2.47 cr of interest, while other income contributed Rs 1.04 cr to profit before tax.
Filed 12 Aug 2026, 17:09 IST · after market close · RACE (RACE)
Key takeaways
- RACE reported a consolidated operating margin of 1.87%, leaving only Rs 3.58 cr of operating profit against Rs 2.47 cr of interest.
- Other income of Rs 1.04 cr was a sizeable component of the Rs 1.39 cr consolidated profit before tax.
- A 25.81% tax rate reduced consolidated profit after tax to Rs 1.03 cr from Rs 1.39 cr of profit before tax.
A thin operating cushion
RACE's consolidated operating profit of Rs 3.58 cr on revenue of Rs 191.06 cr left a narrow cushion over Rs 2.47 cr of interest. Depreciation of Rs 0.76 cr further reduced profit before tax to Rs 1.39 cr. Net profit was Rs 1.03 cr after Rs 0.36 cr of tax.
Other income mattered to reported profit
Expenses of Rs 187.48 cr consumed almost all of consolidated revenue, leaving limited operating surplus. Other income of Rs 1.04 cr therefore formed a sizeable part of the Rs 1.39 cr profit before tax. The 25.81% tax rate also reduced the conversion of pre-tax profit into net profit.
Results filed after market close
RACE filed its consolidated Q1FY27 results at 17:09 IST on 12 Aug 2026, after market close. The update therefore focuses on the reported quarter rather than a market reaction.
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 | ₹191 cr |
| Other income | ₹1 cr |
| Expenses | ₹187 cr |
| Operating profit | ₹4 cr |
| Operating margin (%) | 1.87% |
| Interest | ₹2 cr |
| Depreciation | ₹1 cr |
| Profit before tax | ₹1 cr |
| Tax | ₹0 cr |
| Net profit | ₹1 cr |
| EPS (₹) | ₹0.60 |
What to watch
- Whether operating margin holds above 1.87% while interest stays below Rs 2.47 cr.
- Whether profit before tax becomes less reliant on other income of Rs 1.04 cr.
- Whether the 25.81% tax rate changes the conversion of Rs 1.39 cr of pre-tax profit into net profit.