Depreciation leaves Tarachand with Rs 1.66 cr net profit in Q1FY27
Operating profit of Rs 20.2 cr was largely absorbed by Rs 15.95 cr depreciation and Rs 2.53 cr interest.
Filed 06 Aug 2026, 14:16 IST · TARACHAND (TARACHAND)
Key takeaways
- Q1FY27 consolidated operating profit was Rs 20.2 cr, but depreciation of Rs 15.95 cr left profit before tax at Rs 2.22 cr.
- Consolidated net profit was Rs 1.66 cr after a 25.21% tax rate, with EPS at Rs 0.21.
- The company said its 100%-owned Tarachand Metallix subsidiary, incorporated on Jan 06, 2026, is being built as a metal processing and manufacturing platform with initial capital of Rs 25 Lakhs.
Depreciation sharply reduced Q1FY27 earnings conversion
Tarachand reported consolidated operating profit of Rs 20.2 cr in Q1FY27, but depreciation of Rs 15.95 cr and interest of Rs 2.53 cr consumed most of it. Profit before tax was therefore Rs 2.22 cr, despite a 29.87% operating margin. Other income of Rs 0.5 cr provided a non-operating contribution, while the 25.21% tax rate reduced profit after tax to Rs 1.66 cr.
No sequential or year-on-year benchmark is available
The quarter has no supplied sequential or year-on-year comparison, so the change in revenue growth, expense growth and operating margin cannot be assessed here. There is also no multi-quarter trend to establish whether the 29.87% operating margin is improving or declining.
New subsidiary is the main strategic development
The presentation said Tarachand Metallix Limited was incorporated as a 100%-owned subsidiary on Jan 06, 2026. It said the subsidiary has initial capital of Rs 25 Lakhs and is being built as a metal processing and manufacturing platform. The update adds a new business platform to a quarter in which depreciation remained the main constraint on profit conversion.
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 | ₹68 cr |
| Other income | ₹1 cr |
| Expenses | ₹47 cr |
| Operating profit | ₹20 cr |
| Operating margin (%) | 29.87% |
| Interest | ₹3 cr |
| Depreciation | ₹16 cr |
| Profit before tax | ₹2 cr |
| Tax | ₹1 cr |
| Net profit | ₹2 cr |
| EPS (₹) | ₹0.21 |
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Expansion
- Tarachand Metallix Limited was incorporated as a 100% wholly owned subsidiary on January 6, 2026.
- Tarachand Metallix Limited has initial capital of ₹25 Lakhs.
New initiatives
- Tarachand Metallix Limited is being built as a metal processing and manufacturing platform.
What to watch
- Whether consolidated operating margin remains at 29.87% while depreciation was Rs 15.95 cr in Q1FY27.
- Whether net profit remains above Rs 1.66 cr and EPS above Rs 0.21.
- Updates on the 100%-owned Tarachand Metallix subsidiary incorporated on Jan 06, 2026, with initial capital of Rs 25 Lakhs.