TBO Tek lifts margin, but financing and tax curb profit growth
Revenue momentum improved sequentially, but higher interest, depreciation and tax costs limited the conversion into net profit.
Filed 29 Jul 2026, 19:15 IST · after market close · TBO Tek Ltd (TBOTEK)
Key takeaways
- Consolidated revenue grew +81.07% YoY while expenses rose +80.19%, lifting operating margin by 0.42 percentage points to 14.91%.
- Net profit increased only +32.38% YoY as interest costs climbed +177.19% and the tax rate rose 2.91 percentage points.
- Operating margin recovered 1.97 percentage points QoQ but remained 0.78 percentage points below the 37-peer sector median.
Price around the results
Revenue growth accelerated into Q1FY27
TBO Tek reported consolidated revenue of Rs 925.78 cr, up +81.07% YoY and +13.68% QoQ. Expenses grew slightly slower than revenue YoY and QoQ, allowing operating profit to rise +86.32% YoY and +31.01% QoQ. Net profit growth was more modest at +32.38% YoY, despite a +38.70% QoQ increase.
Operating margin recovered, but below the peer median
Operating margin expanded by 0.42 percentage points YoY and 1.97 percentage points QoQ because expenses grew slower than revenue. The margin has recovered from 12.80% in Q3FY26 and 12.94% in Q4FY26, but remains below the 15.52% recorded in Q2FY26. At 14.91%, it was 0.78 percentage points below the 15.69% median for 37 reported Consumer Discretionary peers.
Higher finance and tax costs weakened profit quality
Interest expense rose +177.19% YoY to Rs 14.58 cr, while depreciation increased +136.68% to Rs 33.04 cr, absorbing part of the operating profit growth. The tax rate rose to 19.30% from 16.39% YoY and from 18.43% QoQ, further limiting net profit conversion. Other income contributed 12.49% of pre-tax profit, so reported earnings still included a meaningful non-operating component, even though other income fell -36.98% YoY.
Results filed after close; past reactions have been mixed
The consolidated results were filed after market close on 29 Jul 2026, so there is no immediate trading response to assess here. Across eight prior result reactions, the stock rose three times and fell five times, with a median absolute move of 4.30%, indicating that post-results moves have usually been material and directionally mixed.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹926 cr | ₹814 cr | +13.68% | +81.07% |
| Other income | ₹13 cr | ₹13 cr | +0.86% | -36.98% |
| Expenses | ₹788 cr | ₹709 cr | +11.11% | +80.19% |
| Operating profit | ₹138 cr | ₹105 cr | +31.01% | +86.32% |
| Operating margin (%) | 14.91% | 12.94% | — | — |
| Interest | ₹15 cr | ₹15 cr | +0.21% | +177.19% |
| Depreciation | ₹33 cr | ₹30 cr | +10.46% | +136.68% |
| Profit before tax | ₹103 cr | ₹74 cr | +40.21% | +37.15% |
| Tax | ₹20 cr | ₹14 cr | +46.87% | +61.51% |
| Net profit | ₹83 cr | ₹60 cr | +38.70% | +32.38% |
| EPS (₹) | ₹7.77 | ₹5.62 | +38.26% | +31.69% |
Operating margin of 14.91% compares with a Consumer Discretionary sector median of 15.69% across 37 peers that have reported Q1FY27.
What to watch
- Whether operating margin moves back above the 15.52% Q2FY26 level.
- Whether interest expense remains near Rs 14.58 cr after its +177.19% YoY increase.
- Whether the tax rate stays near 19.30% or moves closer to the 16.39% YoY level.