Operating profit turns negative as other income carries Q1 profit
Revenue growth was -6.65% QoQ while expenses grew +3.01%, pushing operating margin down 9.69 percentage points.
Filed 18 Sep 2026, 18:36 IST · after market close · SUPREMEENG (SUPREMEENG)
Key takeaways
- Standalone net profit of Rs 1.49 cr was supported by other income equal to 144.57% of pre-tax profit.
- Operating margin fell 9.69 percentage points sequentially to -1.07% as revenue declined 6.65% while expenses rose 3.01%.
- The tax rate fell 65.69 percentage points to 14.90%, helping the company move from a Q4FY26 net loss of Rs 0.09 cr to profit.
Profit came from outside operations
Supreme Engineering reported standalone net profit of Rs 1.49 cr despite an operating loss of Rs 0.04 cr. Other income of Rs 2.53 cr accounted for 144.57% of pre-tax profit, making earnings quality dependent on non-operating income this quarter. The lower tax rate also supported the conversion of pre-tax profit into net profit.
Costs rose while revenue contracted
Revenue fell 6.65% sequentially to Rs 4.07 cr, while expenses increased 3.01% to Rs 4.11 cr. Costs therefore grew faster than revenue, cutting operating margin by 9.69 percentage points from 8.62% in Q4FY26 to -1.07%. Lower interest expense, down 36.73%, did not offset the operating deterioration.
Q1FY27 reversed the Q4 operating trend
The company moved from operating profit of Rs 0.38 cr in Q4FY26 to an operating loss of Rs 0.04 cr in Q1FY27. The sequential profit swing was also shaped by other income, which rose from Rs 0.05 cr to Rs 2.53 cr, while the tax rate fell from 80.59% to 14.90%.
Results were filed after market close
The standalone results were filed after market close on 18 Sep 2026. The filing therefore provides the reported quarter's operating and profit picture without a post-results market move to assess.
Q1FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹4 cr | ₹4 cr | -6.65% |
| Other income | ₹3 cr | ₹0 cr | +4960.00% |
| Expenses | ₹4 cr | ₹4 cr | +3.01% |
| Operating profit | ₹-0 cr | ₹0 cr | — |
| Operating margin (%) | -1.07% | 8.62% | — |
| Interest | ₹0 cr | ₹0 cr | -36.73% |
| Depreciation | ₹0 cr | ₹0 cr | +4.88% |
| Profit before tax | ₹2 cr | ₹-0 cr | — |
| Tax | ₹0 cr | ₹-0 cr | — |
| Net profit | ₹1 cr | ₹-0 cr | — |
| EPS (₹) | ₹0.06 | ₹-0.02 | — |
What to watch
- Whether operating margin recovers from -1.07% in the next quarter.
- Whether expenses stop growing faster than revenue after revenue fell 6.65% and expenses rose 3.01%.
- Whether profit remains supported by other income after its 144.57% share of pre-tax profit.