Other income lifted RHETAN to profit despite an operating loss
Standalone net profit was Rs 3.16 cr, but other income of Rs 4.45 cr exceeded pre-tax profit and operating margin was -16.28%.
Filed 12 Aug 2026, 17:52 IST · after market close · RHETAN (RHETAN)
Key takeaways
- RHETAN reported standalone net profit of Rs 3.16 cr despite an operating loss of Rs 0.66 cr.
- Other income of Rs 4.45 cr exceeded profit before tax of Rs 3.31 cr, making it the main source of reported profit.
- Standalone operating margin was -16.28%, while the 4.51% tax rate kept the tax charge to Rs 0.15 cr.
Profit came despite negative operating earnings
RHETAN's standalone operations generated a loss of Rs 0.66 cr on revenue of Rs 4.06 cr, as expenses reached Rs 4.72 cr. Profit before tax nevertheless stood at Rs 3.31 cr because other income contributed Rs 4.45 cr.
Earnings quality is the central issue
Other income was larger than reported pre-tax profit, so the quarter's Rs 3.16 cr net profit was not driven by operating performance. The 4.51% tax rate also limited the tax charge to Rs 0.15 cr, leaving EPS at Rs 0.08.
Filed after the market close
RHETAN filed its standalone results at 17:52 IST on 12 August 2026, after market close. There is therefore no immediate post-results stock reaction to assess in this report.
Q1FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹4 cr |
| Other income | ₹4 cr |
| Expenses | ₹5 cr |
| Operating profit | ₹-1 cr |
| Operating margin (%) | -16.28% |
| Interest | ₹0 cr |
| Depreciation | ₹0 cr |
| Profit before tax | ₹3 cr |
| Tax | ₹0 cr |
| Net profit | ₹3 cr |
| EPS (₹) | ₹0.08 |
What to watch
- Whether operating margin improves from -16.28% as revenue of Rs 4.06 cr is measured against expenses of Rs 4.72 cr.
- Whether profit before tax continues to be supported by other income of Rs 4.45 cr rather than operating profit of -Rs 0.66 cr.
- Whether EPS moves from Rs 0.08 alongside net profit of Rs 3.16 cr.