Interest burden pushed Sakthi Sugars to a Q1 standalone loss
Operating profit of Rs 26.71 cr was largely absorbed by Rs 24.15 cr of interest, while net profit fell to a loss of Rs 1.83 cr.
Filed 13 Aug 2026, 12:15 IST · SAKHTISUG (SAKHTISUG)
Key takeaways
- Standalone operations generated Rs 26.71 cr of profit, but interest of Rs 24.15 cr and depreciation of Rs 9.43 cr pushed profit before tax into a Rs 2.41 cr loss.
- Other income of Rs 4.47 cr was not enough to offset the financial and depreciation charges, leaving a net loss of Rs 1.83 cr.
- The operating margin was 7.09%, leaving limited room between operating profit and the reported loss.
Operating profit did not reach the bottom line
Sakthi Sugars reported standalone operating profit of Rs 26.71 cr, but interest expense of Rs 24.15 cr consumed almost all of it. Depreciation of Rs 9.43 cr then took profit before tax to a loss of Rs 2.41 cr. Other income of Rs 4.47 cr provided some offset but did not prevent a net loss of Rs 1.83 cr.
A 7.09% operating margin left little buffer
Revenue of Rs 376.91 cr translated into an operating margin of 7.09% after expenses of Rs 350.20 cr. The narrow operating surplus was therefore vulnerable to the interest charge, which was close to the entire operating profit. The reported EPS was -Rs 0.15.
The next read-through is the interest burden
The key issue for the next quarter is whether operating profit can widen enough to create more room after the Rs 24.15 cr interest charge. Investors can also track whether the operating margin moves above 7.09% and whether profit before tax returns from the Rs 2.41 cr loss.
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 | ₹377 cr |
| Other income | ₹4 cr |
| Expenses | ₹350 cr |
| Operating profit | ₹27 cr |
| Operating margin (%) | 7.09% |
| Interest | ₹24 cr |
| Depreciation | ₹9 cr |
| Profit before tax | ₹-2 cr |
| Tax | ₹-1 cr |
| Net profit | ₹-2 cr |
| EPS (₹) | ₹-0.15 |
What to watch
- Whether operating margin moves above 7.09%.
- Whether interest remains below operating profit of Rs 26.71 cr.
- Whether profit before tax turns positive from a loss of Rs 2.41 cr.