Tax credit lifts RAMASTEEL net profit above pre-tax profit
Operating margin was 2.73%, while the Rs 1.64 cr tax credit lifted net profit to Rs 5.45 cr.
Filed 14 Aug 2026, 17:41 IST · after market close · RAMASTEEL (RAMASTEEL)
Key takeaways
- A tax credit of Rs 1.64 cr turned profit before tax of Rs 3.8 cr into net profit of Rs 5.45 cr, making reported earnings quality the key issue.
- Operating margin was only 2.73%, as expenses of Rs 217.24 cr consumed most of revenue of Rs 223.34 cr.
- The after-close filing left no market reaction yet, while EPS was Rs 0.03.
Tax credit changes the earnings read
The Rs 1.64 cr tax credit was larger than the Rs 1.04 cr contribution from other income and lifted net profit above profit before tax of Rs 3.8 cr. The negative tax rate of -43.13% means reported net profit was flattered by the tax line rather than driven only by operations.
Operating margin remained thin
Revenue of Rs 223.34 cr left operating profit of Rs 6.1 cr, implying limited operating cushion. Interest of Rs 1.7 cr and depreciation of Rs 1.63 cr further reduced operating profit before the tax credit lifted reported earnings.
Margin below the available historical point
Operating margin was 2.73% in Q1FY27, below the 4.11% recorded in Q4FY25. Operating profit also stood at Rs 6.1 cr versus Rs 12.05 cr in that earlier quarter, though the available comparison does not establish a multi-quarter direction.
Results filed after market close
The consolidated results were filed at 17:41 IST on 14 Aug 2026, after market close. There was therefore no reported share-price reaction to place against the stock's post-results history.
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 | ₹223 cr |
| Other income | ₹1 cr |
| Expenses | ₹217 cr |
| Operating profit | ₹6 cr |
| Operating margin (%) | 2.73% |
| Interest | ₹2 cr |
| Depreciation | ₹2 cr |
| Profit before tax | ₹4 cr |
| Tax | ₹-2 cr |
| Net profit | ₹5 cr |
| EPS (₹) | ₹0.03 |
What to watch
- Whether operating margin moves above or below 2.73%.
- Whether net profit continues to exceed profit before tax of Rs 3.8 cr because of the tax line.
- Whether interest remains around Rs 1.7 cr relative to operating profit.