Interest and depreciation absorbed much of Swaraj's operating profit
The consolidated Q1FY27 operating margin was 19.37%, while Rs 11.46 cr of interest and Rs 5.51 cr of depreciation weighed on profit before tax.
Filed 10 Sep 2026, 17:58 IST · after market close · SWARAJ (SWARAJ)
Key takeaways
- Swaraj reported consolidated net profit of Rs 16.42 cr in Q1FY27, with operating margin at 19.37%.
- Interest expense of Rs 11.46 cr exceeded other income of Rs 2.43 cr, limiting the conversion of operating profit into pre-tax profit.
- The 21.76% tax rate was applied to consolidated profit before tax of Rs 20.98 cr, so reported profit was not solely a function of operating performance.
Operating profit sets the base
Swaraj's consolidated revenue of Rs 183.37 cr generated operating profit of Rs 35.52 cr in Q1FY27. The 19.37% operating margin shows that the quarter's earnings were primarily supported by operations rather than the Rs 2.43 cr of other income.
Finance costs dilute operating earnings
Interest expense of Rs 11.46 cr was larger than other income of Rs 2.43 cr, creating a meaningful gap between operating profit of Rs 35.52 cr and pre-tax profit of Rs 20.98 cr. Depreciation of Rs 5.51 cr also reduced the amount of operating profit reaching pre-tax earnings. The 21.76% tax rate then brought consolidated net profit to Rs 16.42 cr.
Filed after the market close
The consolidated results were filed at 17:58 IST on 10 September 2026, after market close. There is no reported market reaction to assess yet, 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 | ₹183 cr |
| Other income | ₹2 cr |
| Expenses | ₹148 cr |
| Operating profit | ₹36 cr |
| Operating margin (%) | 19.37% |
| Interest | ₹11 cr |
| Depreciation | ₹6 cr |
| Profit before tax | ₹21 cr |
| Tax | ₹5 cr |
| Net profit | ₹16 cr |
| EPS (₹) | ₹6.23 |
What to watch
- Whether operating margin holds above 19.37% next quarter.
- Whether interest expense remains below operating profit of Rs 35.52 cr.
- Whether other income remains close to Rs 2.43 cr rather than becoming a larger contributor to pre-tax profit.