SMLT's 2.81% operating margin leaves profit reliant on other income
Standalone net profit reached Rs 1.33 cr, but Rs 1.39 cr of other income was a significant contributor to pre-tax profit.
Filed 13 Aug 2026, 13:09 IST · SMLT (SMLT)
Key takeaways
- Standalone operating margin was only 2.81%, leaving operating profit at Rs 1.55 cr on revenue of Rs 55.21 cr.
- Other income of Rs 1.39 cr was a significant contributor to profit before tax of Rs 2.07 cr.
- Standalone net profit was Rs 1.33 cr after a 35.88% tax rate, with EPS at Rs 0.97.
Low operating profit limits earnings quality
SMLT reported standalone revenue of Rs 55.21 cr and operating profit of Rs 1.55 cr in Q1FY27. The 2.81% operating margin indicates that the core business generated only a small profit before interest, depreciation and tax.
Other income shaped the pre-tax result
Other income of Rs 1.39 cr was a large component of the Rs 2.07 cr profit before tax, so the reported profit was not driven only by operations. Interest of Rs 0.26 cr and depreciation of Rs 0.62 cr further reduced the contribution from operating profit before tax.
Tax absorbed more than a third of pre-tax profit
A 35.88% tax rate reduced profit before tax of Rs 2.07 cr to standalone net profit of Rs 1.33 cr. With no year-on-year, sequential or multi-quarter comparison supplied, the quarter's direction and margin trend cannot be assessed beyond the current 2.81% operating margin.
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 | ₹55 cr |
| Other income | ₹1 cr |
| Expenses | ₹54 cr |
| Operating profit | ₹2 cr |
| Operating margin (%) | 2.81% |
| Interest | ₹0 cr |
| Depreciation | ₹1 cr |
| Profit before tax | ₹2 cr |
| Tax | ₹1 cr |
| Net profit | ₹1 cr |
| EPS (₹) | ₹0.97 |
What to watch
- Whether operating margin moves from 2.81% in the next reported quarter.
- Whether other income remains close to Rs 1.39 cr and continues to support pre-tax profit.
- Whether the tax rate changes from 35.88%.