Other income exceeds Shankara's pre-tax profit in Q1FY27
Interest and depreciation absorbed most of operating profit, leaving consolidated net profit at Rs 1.54 cr.
Filed 05 Aug 2026, 14:17 IST · SHANKARA (SHANKARA)
Key takeaways
- Q1FY27 consolidated revenue of Rs 350.35 cr translated into only Rs 6.11 cr of operating profit, leaving operating margin at 1.74%.
- Interest of Rs 4.99 cr and depreciation of Rs 2.28 cr reduced operating profit to pre-tax profit of Rs 1.97 cr.
- Other income of Rs 3.13 cr exceeded pre-tax profit, making the Rs 1.54 cr net profit materially reliant on non-operating income.
Low operating conversion despite Rs 350.35 cr revenue
Shankara's consolidated Q1FY27 revenue produced operating profit of only Rs 6.11 cr, indicating limited conversion of sales into operating earnings. The resulting 1.74% operating margin leaves little room for interest and depreciation before tax.
Interest and depreciation consumed the operating profit
Interest of Rs 4.99 cr and depreciation of Rs 2.28 cr together outweighed the operating profit of Rs 6.11 cr. Other income of Rs 3.13 cr helped lift profit before tax to Rs 1.97 cr, while tax of Rs 0.43 cr resulted in net profit of Rs 1.54 cr and EPS of Rs 0.64.
Profit quality is weaker than the net figure suggests
Other income was higher than reported pre-tax profit, so the quarter's earnings were not generated mainly by operating profit. The tax rate was 21.83%, while no quarter-on-quarter or year-on-year comparison is available in this release.
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 | ₹350 cr |
| Other income | ₹3 cr |
| Expenses | ₹344 cr |
| Operating profit | ₹6 cr |
| Operating margin (%) | 1.74% |
| Interest | ₹5 cr |
| Depreciation | ₹2 cr |
| Profit before tax | ₹2 cr |
| Tax | ₹0 cr |
| Net profit | ₹2 cr |
| EPS (₹) | ₹0.64 |
What to watch
- Whether operating margin moves up from 1.74%.
- Whether interest remains close to operating profit of Rs 6.11 cr.
- Whether other income continues to exceed pre-tax profit of Rs 1.97 cr.