Vikas Eco's Rs 2.00 cr profit leaned heavily on other income
Other income of Rs 3.05 cr was close to pre-tax profit, while operating margin stood at 2.01% in consolidated Q1FY27.
Filed 27 Aug 2026, 12:33 IST · Vikas Ecotech Ltd (VIKASECO)
Key takeaways
- Consolidated operating margin was 2.01%, 11.86 percentage points below the 13.87% median for 161 reporting commodity peers.
- Other income of Rs 3.05 cr supplied most of the Rs 3.26 cr pre-tax profit, making earnings quality a key issue.
- The stock rose 5.56% on the filing day, while trading volume reached 2.28 times its reference level.
Price around the results
Low operating conversion in Q1FY27
Consolidated revenue of Rs 119.15 cr translated into only Rs 2.40 cr of operating profit, indicating limited conversion of sales into core earnings. Expenses were Rs 116.75 cr, leaving little room after operating costs for interest of Rs 1.07 cr and depreciation of Rs 1.12 cr. Net profit was Rs 2.00 cr, but the low operating surplus limits the contribution from the core business.
Other income carried pre-tax earnings
Other income of Rs 3.05 cr accounted for most of the Rs 3.26 cr pre-tax profit, so reported earnings depended heavily on non-operating income. Tax absorbed 38.76% of pre-tax profit, leaving net profit at Rs 2.00 cr and EPS at Rs 0.01. The 2.01% operating margin was 11.86 percentage points below the 13.87% median of 161 commodity peers that had reported the quarter, placing the company 11th from the bottom.
Initial share-price rise was not sustained
The stock opened 0.93% higher and ended the filing day up 5.56%, with volume at 2.28 times its reference level. The reaction therefore shifted from an immediate gain to a decline over the subsequent observation period.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹119 cr |
| Other income | ₹3 cr |
| Expenses | ₹117 cr |
| Operating profit | ₹2 cr |
| Operating margin (%) | 2.01% |
| Interest | ₹1 cr |
| Depreciation | ₹1 cr |
| Profit before tax | ₹3 cr |
| Tax | ₹1 cr |
| Net profit | ₹2 cr |
| EPS (₹) | ₹0.01 |
Operating margin of 2.01% compares with a Commodities sector median of 13.87% across 161 peers that have reported Q1FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +5.56% | +6.04% |
| Next session | +5.56% | — |
| 5 sessions | +0.00% | +1.38% |
| 15 sessions | -3.70% | — |
Volume on the results session was 2.28× its 20-day average.
What to watch
- Whether operating margin improves from 2.01% in the next quarter.
- Whether profit continues to rely on other income of Rs 3.05 cr.
- Whether the gap to the 13.87% peer median narrows from 11.86 percentage points.