SIL's Q1 profit was largely operational, despite a 5.86% tax rate
Consolidated operating margin was 44.82%, while other income contributed only Rs 0.45 cr to Rs 85.39 cr of pre-tax profit.
Filed 10 Aug 2026, 14:02 IST · SIL (SIL)
Key takeaways
- Core operations generated Rs 86.31 cr of operating profit on Rs 192.57 cr revenue, producing a 44.82% operating margin.
- Other income was only Rs 0.45 cr against Rs 85.39 cr profit before tax, keeping reported profit largely operational.
- A 5.86% tax rate converted Rs 85.39 cr of pre-tax profit into Rs 80.39 cr net profit.
44.82% margin anchors SIL's Q1FY27
SIL's consolidated Q1FY27 result shows a high conversion of revenue into operating profit, with Rs 86.31 cr generated from Rs 192.57 cr of revenue. The earnings profile therefore rests primarily on the operating business rather than incidental income.
Tax was the main profit-quality caveat
Interest of Rs 0.65 cr and depreciation of Rs 0.73 cr were small deductions from operating profit, while other income was just Rs 0.45 cr. The 5.86% tax rate supported the conversion of Rs 85.39 cr of pre-tax profit into Rs 80.39 cr of net profit.
Q1 sets the reference point for subsequent quarters
The quarter establishes a 44.82% operating-margin and Rs 12.50 EPS reference point for subsequent reported periods. The next comparison will show whether this operating conversion and profit quality are sustained.
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 | ₹193 cr |
| Other income | ₹0 cr |
| Expenses | ₹106 cr |
| Operating profit | ₹86 cr |
| Operating margin (%) | 44.82% |
| Interest | ₹1 cr |
| Depreciation | ₹1 cr |
| Profit before tax | ₹85 cr |
| Tax | ₹5 cr |
| Net profit | ₹80 cr |
| EPS (₹) | ₹12.50 |
What to watch
- Whether operating margin remains above 44.82%.
- Whether the tax rate stays near 5.86%.
- Whether other income remains limited relative to Rs 85.39 cr of pre-tax profit.