High operating profit narrowed sharply to Rs 3.97 cr before tax
Interest of Rs 5.03 cr and depreciation of Rs 10.10 cr absorbed much of operating profit, while other income supported reported earnings.
Filed 25 Aug 2026, 12:54 IST · SVLL (SVLL)
Key takeaways
- Standalone operating profit of Rs 18.09 cr converted into only Rs 3.97 cr of profit before tax after interest and depreciation.
- Other income of Rs 1.01 cr was a meaningful part of the Rs 3.97 cr pre-tax profit, making reported earnings quality an important consideration.
- The quarter ended with a 28.96% operating margin and Rs 3.37 cr of net profit at a 15.08% tax rate.
Operating profit did not carry through to pre-tax earnings
The standalone business generated Rs 18.09 cr of operating profit from Rs 62.45 cr of revenue, but profit before tax was only Rs 3.97 cr. Interest of Rs 5.03 cr and depreciation of Rs 10.10 cr explain the large reduction between operating profit and pre-tax profit.
Other income mattered to the reported profit
Other income was Rs 1.01 cr against profit before tax of Rs 3.97 cr. That makes the reported pre-tax result partly dependent on non-operating income, rather than solely on the operating result. Net profit was Rs 3.37 cr after a 15.08% tax rate.
No quarter-on-quarter or year-on-year direction is available
The quarter's operating margin was 28.96%, but there is no comparison with the prior quarter or year-ago period to establish momentum or a multi-quarter trend. The main read-through is therefore the gap between the 28.96% operating margin and the much lower pre-tax profit after financing and depreciation costs.
Q4FY26 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q4FY26 |
|---|---|
| Revenue | ₹62 cr |
| Other income | ₹1 cr |
| Expenses | ₹44 cr |
| Operating profit | ₹18 cr |
| Operating margin (%) | 28.96% |
| Interest | ₹5 cr |
| Depreciation | ₹10 cr |
| Profit before tax | ₹4 cr |
| Tax | ₹1 cr |
| Net profit | ₹3 cr |
| EPS (₹) | ₹2.93 |
What to watch
- Whether operating margin holds above 28.96% in the next reported quarter.
- Whether the gap between operating profit of Rs 18.09 cr and pre-tax profit of Rs 3.97 cr narrows.
- Whether profit remains supported by other income of Rs 1.01 cr and a 15.08% tax rate.