Interest and depreciation absorb most of Reliance Power's operating profit
The 28.75% operating margin trailed the Utilities peer median, while other income exceeded reported profit before tax.
Filed 06 Aug 2026, 19:42 IST · after market close · Reliance Power Ltd (RPOWER)
Key takeaways
- Interest of Rs 386.63 cr and depreciation of Rs 207.28 cr reduced operating profit of Rs 562.41 cr to profit before tax of Rs 115.93 cr.
- Reliance Power's consolidated operating margin of 28.75% was 3.24 percentage points below the 31.99% median for 19 Utilities peers that reported.
- Other income of Rs 147.43 cr exceeded reported profit before tax, while a 44.18% tax rate limited net profit to Rs 64.71 cr.
Price around the results
Operating profit was heavily reduced below the operating line
Reliance Power reported consolidated operating profit of Rs 562.41 cr on revenue of Rs 1,956.32 cr, but interest of Rs 386.63 cr and depreciation of Rs 207.28 cr brought profit before tax down to Rs 115.93 cr. The results were filed after market close on 06 Aug 2026.
Other income supported profit, while tax further reduced conversion
Other income of Rs 147.43 cr exceeded reported profit before tax, making the quality of earnings an important consideration beyond the operating result. Tax of Rs 51.22 cr, equal to a 44.18% tax rate, reduced profit after tax to Rs 64.71 cr and EPS to Rs 0.16.
Operating margin lagged the Utilities peer median
The consolidated operating margin of 28.75% was 3.24 percentage points below the 31.99% median among 19 Utilities peers that had reported the same quarter. No sequential or year-on-year comparison is available here, so the quarter's margin direction cannot be placed in a multi-quarter trend.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹1,956 cr |
| Other income | ₹147 cr |
| Expenses | ₹1,394 cr |
| Operating profit | ₹562 cr |
| Operating margin (%) | 28.75% |
| Interest | ₹387 cr |
| Depreciation | ₹207 cr |
| Profit before tax | ₹116 cr |
| Tax | ₹51 cr |
| Net profit | ₹65 cr |
| EPS (₹) | ₹0.16 |
Operating margin of 28.75% compares with a Utilities sector median of 31.99% across 19 peers that have reported Q1FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +0.21% | +0.47% |
Volume on the results session was 2.73× its 20-day average.
What to watch
- Whether operating margin moves from 28.75% against the 31.99% Utilities peer median.
- Whether interest remains near Rs 386.63 cr relative to operating profit of Rs 562.41 cr.
- Whether other income remains material relative to profit before tax of Rs 115.93 cr.