VASWANI's 74.33% tax rate sharply cut Q1FY27 profit conversion
Interest of Rs 6.16 cr and depreciation of Rs 3.97 cr further widened the gap between operating profit and standalone net profit.
Filed 14 Aug 2026, 19:00 IST · after market close · VASWANI (VASWANI)
Key takeaways
- VASWANI reported standalone net profit of Rs 1.16 cr in Q1FY27 despite a 74.33% tax rate.
- Interest of Rs 6.16 cr and depreciation of Rs 3.97 cr reduced profit before tax to Rs 4.54 cr.
- Operating profit of Rs 14.06 cr converted into net profit of only Rs 1.16 cr after tax and finance costs.
Operating profit did not flow through to earnings
VASWANI's standalone operating profit was Rs 14.06 cr on revenue of Rs 117.79 cr, but profit before tax was only Rs 4.54 cr. Interest of Rs 6.16 cr and depreciation of Rs 3.97 cr were the main deductions below operating profit, while other income was Rs 0.62 cr.
Tax was the clearest drag on net profit
The Rs 3.37 cr tax charge represented a 74.33% tax rate on profit before tax. That left standalone net profit at Rs 1.16 cr, with EPS of Rs 0.35; the reported earnings outcome was therefore heavily affected by tax rather than operating profit alone.
Results were filed after the market close
The company filed its standalone Q1FY27 results at 19:00 IST on 14 August 2026, after market close. There is no immediate market reaction to assess, and no quarter-on-quarter, year-on-year or multi-quarter trend is available in the reported comparison.
Q1FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹118 cr |
| Other income | ₹1 cr |
| Expenses | ₹104 cr |
| Operating profit | ₹14 cr |
| Operating margin (%) | 11.93% |
| Interest | ₹6 cr |
| Depreciation | ₹4 cr |
| Profit before tax | ₹5 cr |
| Tax | ₹3 cr |
| Net profit | ₹1 cr |
| EPS (₹) | ₹0.35 |
What to watch
- Whether the tax rate moves down from 74.33% in the next quarter.
- Whether operating margin improves from 11.93%.
- Whether interest remains near Rs 6.16 cr as operating profit changes.