VETO margin falls to 10.57% as profit conversion weakens
Revenue was broadly unchanged against the available Q4FY25 reference, but higher expenses and a higher tax rate reduced operating and net profit.
Filed 13 Aug 2026, 14:01 IST · VETO (VETO)
Key takeaways
- VETO's consolidated operating margin fell to 10.57% as expenses rose to Rs 79.91 cr against revenue of Rs 89.36 cr.
- Net profit was Rs 5.85 cr, with the 28.82% tax rate higher than the 25.2% rate in the available Q4FY25 reference.
- Operating profit declined to Rs 9.44 cr from Rs 10.84 cr in Q4FY25 even as revenue was broadly unchanged at Rs 89.36 cr versus Rs 89.18 cr.
Revenue held near the Q4FY25 reference
VETO reported consolidated revenue of Rs 89.36 cr in Q1FY27, almost unchanged from Rs 89.18 cr in the available Q4FY25 reference. Operating profit was lower at Rs 9.44 cr versus Rs 10.84 cr, showing weaker conversion of sales into operating earnings. Net profit declined to Rs 5.85 cr from Rs 7.34 cr.
Higher expenses narrowed operating margin
Expenses were Rs 79.91 cr, above the Rs 78.34 cr recorded in the available Q4FY25 reference while revenue was broadly flat. That cost movement coincided with operating margin falling to 10.57% from 12.15%. Other income of Rs 0.53 cr was not the main source of pre-tax profit, but the higher tax rate of 28.82% also reduced the conversion of profit before tax into net profit.
Profit declined on both operating and tax effects
Profit before tax fell to Rs 8.22 cr from Rs 9.81 cr in the available Q4FY25 reference, alongside the lower operating profit. The tax rate rose from 25.2% to 28.82%, adding pressure below the operating line. With no management commentary or market reaction provided, the quarter is best read through the weaker margin and 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 | ₹89 cr |
| Other income | ₹1 cr |
| Expenses | ₹80 cr |
| Operating profit | ₹9 cr |
| Operating margin (%) | 10.57% |
| Interest | ₹1 cr |
| Depreciation | ₹1 cr |
| Profit before tax | ₹8 cr |
| Tax | ₹2 cr |
| Net profit | ₹6 cr |
| EPS (₹) | ₹3.10 |
What to watch
- Whether operating margin recovers from 10.57%.
- Whether operating profit improves from Rs 9.44 cr as expenses remain a key factor.
- Whether the tax rate moves below 28.82%.