RattanIndia Power's 8% margin trails seven Utilities peers
Interest exceeded operating profit, while other income and a zero tax rate supported reported profit; the stock rose 1.87% on the results date.
Filed 24 Jul 2026, 14:44 IST · RattanIndia Power Ltd (RTNPOWER)
Key takeaways
- Consolidated operating margin was 8.00%, 28.02 percentage points below the 36.02% median of seven reporting utility peers.
- Interest of Rs 85.93 cr and depreciation of Rs 61.07 cr more than absorbed operating profit of Rs 63.90 cr.
- Other income of Rs 67.88 cr exceeded pre-tax profit of Rs 45.85 cr, while zero tax left net profit equal to pre-tax profit.
Price around the results
Finance costs outweighed operating profit
RattanIndia Power reported consolidated operating profit of Rs 63.90 cr, but interest of Rs 85.93 cr and depreciation of Rs 61.07 cr together exceeded that amount. Profit before tax was therefore supported by other income of Rs 67.88 cr rather than operating earnings alone.
Profit quality was lifted by other income and zero tax
Other income was larger than the reported pre-tax profit of Rs 45.85 cr, making it a significant contributor to the quarter's earnings. With tax at zero, net profit remained Rs 45.85 cr and EPS was Rs 0.09.
Margin ranked lowest among reporting utility peers
The company's 8.00% operating margin was 28.02 percentage points below the 36.02% median for the seven Utilities peers that had reported the same quarter. It ranked first from the bottom on this measure.
Shares rose after the results
The stock gained 1.87% on the results date, with a 2.30% relative move and trading volume at 2.37 times the reference level. There is no past-results reaction history here to judge whether that move was typical for the stock.
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 | ₹799 cr |
| Other income | ₹68 cr |
| Expenses | ₹735 cr |
| Operating profit | ₹64 cr |
| Operating margin (%) | 8.00% |
| Interest | ₹86 cr |
| Depreciation | ₹61 cr |
| Profit before tax | ₹46 cr |
| Tax | ₹0 cr |
| Net profit | ₹46 cr |
| EPS (₹) | ₹0.09 |
Operating margin of 8.00% compares with a Utilities sector median of 36.02% across 7 peers that have reported Q1FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +1.87% | +2.30% |
Volume on the results session was 2.37× its 20-day average.
What to watch
- Whether operating margin moves up from 8.00% in the next reported quarter.
- Whether interest remains below or above operating profit of Rs 63.90 cr.
- Whether other income stays near Rs 67.88 cr and continues to materially support pre-tax profit.