Other income matters as RK Swamy reports a 10.44% operating margin
Management projected 30% PBT growth and an EBITDA margin of approximately 15.5%, alongside planned capacity and digital-content expansion.
Filed 12 Aug 2026, 17:41 IST · after market close · RKSWAMY (RKSWAMY)
Key takeaways
- The quarter generated Rs 8.73 cr of consolidated operating profit from Rs 83.62 cr revenue, while Rs 3.47 cr net profit also reflected Rs 2.19 cr of other income.
- Profit conversion was constrained by Rs 5.37 cr depreciation and Rs 1.01 cr interest before a 23.79% tax rate was applied.
- Management projected 30% year-on-year PBT growth, 32% EBITDA growth and an EBITDA margin of approximately 15.5%.
Q1FY27 operating profit and conversion
RK Swamy reported consolidated revenue of Rs 83.62 cr and operating profit of Rs 8.73 cr, resulting in a 10.44% operating margin. Depreciation of Rs 5.37 cr was a larger charge than interest of Rs 1.01 cr, limiting the conversion of operating profit into pre-tax earnings. Net profit was Rs 3.47 cr after tax of Rs 1.08 cr.
Other income was material to pre-tax profit
Other income of Rs 2.19 cr was material relative to consolidated PBT of Rs 4.55 cr, so reported earnings included a meaningful non-operating contribution. The 23.79% tax rate further shaped the movement from PBT to net profit. There are no year-on-year or sequential drivers in the reported comparison for this quarter.
Management's growth and expansion agenda
Management said it projects PBT growth of 30% year on year and EBITDA growth of 32%, with an EBITDA margin of approximately 15.5%. The company said it is continuing and proposing capacity expansion alongside a larger talent base. It also proposed a digital video content production studio with integrated production and post-production facilities, intended to serve digital-content demand and reduce reliance on external production and outsourcing costs.
Results filed after market close
The consolidated results were filed after market close on 12 August 2026 at 17:41 IST. This note does not assess a market reaction because the filing was made after trading hours.
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 | ₹84 cr |
| Other income | ₹2 cr |
| Expenses | ₹75 cr |
| Operating profit | ₹9 cr |
| Operating margin (%) | 10.44% |
| Interest | ₹1 cr |
| Depreciation | ₹5 cr |
| Profit before tax | ₹5 cr |
| Tax | ₹1 cr |
| Net profit | ₹3 cr |
| EPS (₹) | ₹0.69 |
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- The company projects PBT growth of 30% year on year.
- The company projects EBITDA growth of 32% year on year.
- The company indicates an EBITDA margin of approximately 15.5%.
Expansion
- The company is continuing and proposing capacity expansion to complement its talent expansion.
- The company has proposed a Digital Video Content Production Studio with integrated production and post-production facilities.
New initiatives
- The company has proposed a Digital Video Content Production Studio to serve growing digital-content demand.
- The company is building infrastructure and capabilities for scalable multilingual content production.
Problems & risks
- The proposed studio is intended to reduce reliance on external production and outsourcing costs.
- The growth drivers address marketplace problems and challenges faced by clients.
What to watch
- Whether operating margin moves from 10.44% in the next reported quarter.
- Whether subsequent disclosures reflect the company's projected EBITDA margin of approximately 15.5%.
- Whether reported PBT growth is tracking management's 30% year-on-year projection.