Tax benefit lifts VHLTD profit despite higher finance and depreciation costs
Consolidated revenue grew 7.35% QoQ, but expenses grew faster and other income made up 58.42% of pre-tax profit.
Filed 12 Nov 2026, 12:47 IST · VHLTD (VHLTD)
Key takeaways
- Consolidated net profit rose 53.79% QoQ to Rs 2.23 cr, aided by a tax rate of -120.20%.
- Revenue grew 7.35% QoQ while expenses grew 7.48%, narrowing operating margin by 0.09 percentage points to 25.51%.
- Other income accounted for 58.42% of pre-tax profit, while interest and depreciation rose 6.24% and 22.58% QoQ.
Q2FY27 profit growth did not come from pre-tax earnings
VHLTD's consolidated net profit rose 53.79% QoQ even as profit before tax fell 26.81% to Rs 1.01 cr. The swing came from the tax line: the tax rate moved to -120.20% from -5.21%, creating a tax benefit that more than offset the lower pre-tax profit.
Costs slightly outpaced revenue, while depreciation accelerated
Revenue increased 7.35% QoQ, but expenses grew 7.48%, so operating margin narrowed by 0.09 percentage points. Interest expense rose 6.24% and depreciation increased 22.58%, adding pressure below operating profit. The operating margin was therefore broadly stable, but the cost mix became less favourable.
Other income was material to the quarter's reported profit
Other income rose 103.45% QoQ to Rs 0.59 cr and represented 58.42% of pre-tax profit. This makes the reported net profit less representative of operating and pre-tax earnings than the headline 53.79% QoQ increase suggests. The available quarter-on-quarter trend shows operating margin easing from 25.60% to 25.51%.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹48 cr | ₹45 cr | +7.35% |
| Other income | ₹1 cr | ₹0 cr | +103.45% |
| Expenses | ₹36 cr | ₹33 cr | +7.48% |
| Operating profit | ₹12 cr | ₹12 cr | +6.96% |
| Operating margin (%) | 25.51% | 25.60% | — |
| Interest | ₹6 cr | ₹5 cr | +6.24% |
| Depreciation | ₹6 cr | ₹5 cr | +22.58% |
| Profit before tax | ₹1 cr | ₹1 cr | -26.81% |
| Tax | ₹-1 cr | ₹-0 cr | -1642.86% |
| Net profit | ₹2 cr | ₹1 cr | +53.79% |
| EPS (₹) | ₹0.34 | ₹0.21 | +61.90% |
What to watch
- Whether operating margin holds above 25.51%.
- Whether depreciation growth moderates from 22.58% QoQ and interest growth from 6.24%.
- Whether the tax rate moves away from -120.20% and net profit tracks pre-tax earnings more closely.