SAGCEM's operating profit could not offset interest and depreciation
The consolidated company reported a Rs 28.10 cr net loss despite Rs 72.42 cr of operating profit; the results were filed after market close.
Filed 27 Jul 2026, 16:31 IST · after market close · SAGCEM (SAGCEM)
Key takeaways
- SAGCEM remained profitable at the operating level with Rs 72.42 cr of operating profit, but interest and depreciation pushed consolidated profit before tax to a loss of Rs 36.59 cr.
- The consolidated net loss was Rs 28.10 cr, after a tax credit of Rs 8.49 cr.
- Operating margin stood at 10.26%, leaving limited cover for interest of Rs 52.23 cr and depreciation of Rs 59.16 cr.
Operating profit did not translate into earnings
SAGCEM's consolidated operations generated Rs 72.42 cr of operating profit, but the company still reported a profit-before-tax loss of Rs 36.59 cr. Interest of Rs 52.23 cr and depreciation of Rs 59.16 cr more than absorbed operating profit. Other income of Rs 2.38 cr was too small to change that outcome.
A 10.26% margin faced a heavy below-operating burden
The 10.26% operating margin shows that the loss was driven below the operating line rather than by a negative operating result. Interest and depreciation together were the key charges separating operating profit from pre-tax earnings. A tax credit of Rs 8.49 cr reduced the reported net loss to Rs 28.10 cr, so the tax line partly softened the loss rather than indicating an underlying profit.
No quarter-on-quarter or year-on-year read-through yet
The consolidated results were filed after market close on 27 Jul 2026. The filing therefore provides the current-quarter operating picture, but not a market reaction in this note. There is also no quarter-on-quarter, year-on-year or multi-quarter trend to assess here.
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 | ₹706 cr |
| Other income | ₹2 cr |
| Expenses | ₹634 cr |
| Operating profit | ₹72 cr |
| Operating margin (%) | 10.26% |
| Interest | ₹52 cr |
| Depreciation | ₹59 cr |
| Profit before tax | ₹-37 cr |
| Tax | ₹-8 cr |
| Net profit | ₹-28 cr |
| EPS (₹) | ₹-2.15 |
What to watch
- Whether operating margin moves above or below 10.26%.
- Whether operating profit of Rs 72.42 cr continues to cover interest of Rs 52.23 cr and depreciation of Rs 59.16 cr.
- Whether the tax credit of Rs 8.49 cr recurs alongside another pre-tax loss.