Interest, depreciation and tax sharply reduced SRTL's operating profit conversion
Filed 12 Aug 2026, 16:04 IST · after market close · SRTL (SRTL)
Key takeaways
- The standalone quarter converted operating profit of Rs 10.84 cr into net profit of Rs 3.61 cr after Rs 2.63 cr of interest, Rs 2.08 cr of depreciation and a 44.3% tax rate.
- Other income was only Rs 0.35 cr, so reported earnings were driven mainly by operations rather than non-operating gains.
- The results were filed after market close on 12 Aug 2026, with no market reaction yet available.
Operating profit faced a heavy below-the-line drag
SRTL's standalone operating profit of Rs 10.84 cr fell to profit before tax of Rs 6.48 cr after interest of Rs 2.63 cr and depreciation of Rs 2.08 cr. Tax of Rs 2.87 cr then reduced net profit to Rs 3.61 cr. Other income of Rs 0.35 cr was small relative to operating profit, so it did not materially change the earnings profile.
Tax rate was a further constraint on earnings conversion
The 44.3% tax rate absorbed a substantial portion of profit before tax, limiting the conversion of operating earnings into net profit. With no sequential or year-on-year drivers provided, the quarter cannot be assessed for margin momentum or cost growth against an earlier period.
No immediate market reaction after the filing
The standalone results were filed after market close on 12 Aug 2026. No post-results share-price reaction is covered yet, and there is no recent reaction history in the available results record.
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 | ₹93 cr |
| Other income | ₹0 cr |
| Expenses | ₹82 cr |
| Operating profit | ₹11 cr |
| Operating margin (%) | 11.69% |
| Interest | ₹3 cr |
| Depreciation | ₹2 cr |
| Profit before tax | ₹6 cr |
| Tax | ₹3 cr |
| Net profit | ₹4 cr |
| EPS (₹) | ₹1.19 |
What to watch
- Whether operating margin holds above 11.69% in the next reported quarter.
- Whether the tax rate moves below 44.3% or remains a drag on net profit.
- Whether interest falls from Rs 2.63 cr relative to operating profit.