Interest and depreciation sharply narrowed Stanley's profit conversion
Consolidated operating profit was Rs 17.22 cr, but PBT fell to Rs 1.81 cr after Rs 5.68 cr of interest and Rs 15.35 cr of depreciation.
Filed 13 Aug 2026, 17:39 IST · after market close · STANLEY (STANLEY)
Key takeaways
- Consolidated operating profit of Rs 17.22 cr translated to a 17.33% operating margin, but left little room after financing and depreciation costs.
- Interest of Rs 5.68 cr and depreciation of Rs 15.35 cr reduced profit before tax to Rs 1.81 cr despite Rs 17.22 cr of operating profit.
- Other income of Rs 5.62 cr exceeded profit before tax, while a 64.09% tax rate reduced net profit to Rs 0.65 cr.
Operating profit did not carry through to earnings
Stanley reported consolidated revenue of Rs 99.35 cr and operating profit of Rs 17.22 cr, implying a 17.33% operating margin. The gap between operating profit and profit before tax was driven by Rs 5.68 cr of interest and Rs 15.35 cr of depreciation. Profit before tax was therefore Rs 1.81 cr.
Other income was larger than reported pre-tax profit
Other income was Rs 5.62 cr, higher than the reported profit before tax of Rs 1.81 cr, making earnings quality an important read-through this quarter. Tax of Rs 1.16 cr at a 64.09% tax rate further reduced net profit to Rs 0.65 cr. Basic EPS was Rs 0.08.
Results were filed after market close
The consolidated results were filed on 13 Aug 2026 at 17:39 IST, after market close. There is no immediate market reaction to assess, and 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 | ₹99 cr |
| Other income | ₹6 cr |
| Expenses | ₹82 cr |
| Operating profit | ₹17 cr |
| Operating margin (%) | 17.33% |
| Interest | ₹6 cr |
| Depreciation | ₹15 cr |
| Profit before tax | ₹2 cr |
| Tax | ₹1 cr |
| Net profit | ₹1 cr |
| EPS (₹) | ₹0.08 |
What to watch
- Whether operating margin moves from 17.33% in the next reported quarter.
- Whether interest and depreciation remain at Rs 5.68 cr and Rs 15.35 cr, respectively.
- Whether net profit improves from Rs 0.65 cr without a higher contribution from other income than Rs 5.62 cr.