STC India's profit falls as other income drops and operating loss widens
With no revenue, the Rs 2.84 cr standalone profit came from other income, while a zero tax rate partly cushioned the sequential decline.
Filed 31 Aug 2026, 14:50 IST · State Trading Corporation of India Ltd (STCINDIA)
Key takeaways
- Standalone Q1FY27 net profit fell 71.40% QoQ as other income dropped 33.83% while expenses rose 17.77%.
- With zero revenue and a Rs 13.52 cr operating loss, Rs 16.92 cr of other income contributed 595.77% of pre-tax profit.
- Net profit was flattered by a zero tax rate, with the tax rate down 26.74 percentage points QoQ.
Price around the results
Zero revenue leaves operating loss
STC India reported standalone Q1FY27 revenue of Rs 0.00 cr, leaving expenses as the main operating burden. Expenses rose 17.77% QoQ to Rs 13.52 cr, widening the operating loss from Rs 11.48 cr in Q4FY26 to Rs 13.52 cr. This means the quarter's profit was not generated by operating revenue.
Profit remained dependent on other income
Other income fell 33.83% QoQ to Rs 16.92 cr while interest expense rose 3.70%, cutting pre-tax profit 79.04% to Rs 2.84 cr. Other income was 595.77% of pre-tax profit, highlighting the low quality of reported earnings. The zero tax charge also supported net profit, with the tax rate falling 26.74 percentage points from the previous quarter.
Sequential deterioration continues from Q4FY26
The sequential trend weakened across earnings measures: net profit fell 71.40% and EPS fell 82.85% from Q4FY26. With only the immediately preceding quarter in the reported sequence, the clear direction is a sharp quarter-on-quarter decline rather than an operating recovery.
Shares extended their decline after the result
The stock fell 2.72% on the initial reaction and was down 7.10% after five sessions.
Q1FY27 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹0 cr | ₹0 cr | — |
| Other income | ₹17 cr | ₹26 cr | -33.83% |
| Expenses | ₹14 cr | ₹11 cr | +17.77% |
| Operating profit | ₹-14 cr | ₹-11 cr | -17.77% |
| Interest | ₹1 cr | ₹1 cr | +3.70% |
| Depreciation | ₹0 cr | ₹0 cr | — |
| Profit before tax | ₹3 cr | ₹14 cr | -79.04% |
| Tax | ₹0 cr | ₹4 cr | -100.00% |
| Net profit | ₹3 cr | ₹10 cr | -71.40% |
| EPS (₹) | ₹0.47 | ₹2.74 | -82.85% |
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -2.72% | -2.20% |
| Next session | -3.39% | — |
| 5 sessions | -7.10% | -5.37% |
| 15 sessions | -8.39% | — |
Volume on the results session was 1.07× its 20-day average.
What to watch
- Whether reported revenue moves above Rs 0.00 cr.
- Other income and its share of pre-tax profit versus Rs 16.92 cr and 595.77% this quarter.
- Whether the tax rate remains at 0.00% after falling 26.74 percentage points QoQ.