High tax and financing costs limited RACLGEAR's Q1 profit conversion
Operating margin was 24.13%, while Rs 6.17 cr of interest, Rs 9.2 cr of depreciation and a 47.09% tax rate weighed on earnings.
Filed 07 Aug 2026, 17:45 IST · after market close · RACLGEAR (RACLGEAR)
Key takeaways
- Consolidated operating profit of Rs 31.94 cr was reduced by Rs 6.17 cr of interest and Rs 9.2 cr of depreciation before tax.
- A 47.09% tax rate absorbed nearly half of profit before tax, limiting net profit to Rs 8.9 cr.
- Other income of Rs 0.25 cr made little contribution to consolidated profit before tax of Rs 16.82 cr.
Operating profit faced a heavy below-the-line burden
RACLGEAR reported consolidated operating profit of Rs 31.94 cr on revenue of Rs 132.35 cr, giving an operating margin of 24.13%. Interest of Rs 6.17 cr and depreciation of Rs 9.2 cr together reduced the amount reaching profit before tax.
Tax was the clearest pressure on reported profit
Profit before tax was Rs 16.82 cr, but tax of Rs 7.92 cr implied a 47.09% tax rate and left net profit at Rs 8.9 cr. Other income was only Rs 0.25 cr, so reported earnings were not materially supported by non-operating income.
The filing came after the market close
The consolidated results were filed at 17:45 IST on 7 August 2026, after market close. There is no immediate market reaction to assess in this release.
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 | ₹132 cr |
| Other income | ₹0 cr |
| Expenses | ₹100 cr |
| Operating profit | ₹32 cr |
| Operating margin (%) | 24.13% |
| Interest | ₹6 cr |
| Depreciation | ₹9 cr |
| Profit before tax | ₹17 cr |
| Tax | ₹8 cr |
| Net profit | ₹9 cr |
| EPS (₹) | ₹7.55 |
What to watch
- Whether operating margin holds above 24.13%.
- Whether the tax rate moves below 47.09%.
- Whether interest remains around Rs 6.17 cr as profit scales.