Sandhar's 7.61% operating margin trails sector median by 5.32 points
The consolidated quarter included Rs 13.48 cr of other income against Rs 51.14 cr of profit before tax, making earnings quality an important focus.
Filed 11 Aug 2026, 14:24 IST · Sandhar Technologies Limited (SANDHAR)
Key takeaways
- Sandhar's consolidated operating margin of 7.61% was 5.32 percentage points below the Consumer Discretionary median across 145 reported peers.
- Other income of Rs 13.48 cr was a meaningful contributor to the Rs 51.14 cr consolidated profit before tax.
- Interest of Rs 17.67 cr and depreciation of Rs 49.86 cr weighed on the conversion of Rs 105.19 cr operating profit into Rs 37.28 cr net profit.
Price around the results
Margin remains well below the sector comparison
On a consolidated basis, Sandhar converted Rs 1,381.89 cr of revenue into Rs 105.19 cr of operating profit. Its 7.61% operating margin was 5.32 percentage points below the 12.93% median for the 145 Consumer Discretionary peers that had reported. Sandhar ranked 33rd from the bottom on this measure.
Below-operating-line costs limited profit conversion
Interest of Rs 17.67 cr and depreciation of Rs 49.86 cr reduced the operating profit available for profit before tax. Other income of Rs 13.48 cr partly offset those charges, so the Rs 51.14 cr consolidated profit before tax was not generated solely by operations. The reported tax rate was 27.1%, with net profit at Rs 37.28 cr and EPS at Rs 6.19.
No sequential or year-on-year benchmark in this release
The quarter's operating performance is therefore best read against the sector comparison rather than a reported YoY or QoQ change. The main distinction is the gap between Sandhar's 7.61% operating margin and the peer median of 12.93%.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹1,382 cr |
| Other income | ₹13 cr |
| Expenses | ₹1,277 cr |
| Operating profit | ₹105 cr |
| Operating margin (%) | 7.61% |
| Interest | ₹18 cr |
| Depreciation | ₹50 cr |
| Profit before tax | ₹51 cr |
| Tax | ₹14 cr |
| Net profit | ₹37 cr |
| EPS (₹) | ₹6.19 |
Operating margin of 7.61% compares with a Consumer Discretionary sector median of 12.93% across 145 peers that have reported Q1FY27.
What to watch
- Whether operating margin moves up from 7.61% in the next reported quarter.
- Whether other income remains material relative to profit before tax of Rs 51.14 cr.
- Whether interest and depreciation continue to weigh on the conversion of Rs 105.19 cr operating profit into net profit.