Virinchi posts Rs 0.48 cr profit despite pre-tax loss
Interest and depreciation exceeded operating profit, while a Rs 4.34 cr tax credit lifted the consolidated result into profit.
Filed 13 Aug 2026, 19:47 IST · after market close · VIRINCHI (VIRINCHI)
Key takeaways
- Virinchi reported consolidated net profit of Rs 0.48 cr despite a pre-tax loss of Rs 3.86 cr.
- Interest of Rs 7.89 cr and depreciation of Rs 13.49 cr more than absorbed operating profit of Rs 14.88 cr.
- The Rs 4.34 cr tax credit turned a 112.53% tax rate on the reported loss into a small net profit.
Operating profit did not cover below-the-line charges
Virinchi generated consolidated operating profit of Rs 14.88 cr, but interest of Rs 7.89 cr and depreciation of Rs 13.49 cr pushed profit before tax to a loss of Rs 3.86 cr. The result shows that operating earnings were insufficient to cover financing and depreciation costs in the quarter.
Tax credit drove the reported profit
Net profit of Rs 0.48 cr was supported by a Rs 4.34 cr tax credit despite the pre-tax loss. The reported tax rate was therefore 112.53%, making the small positive net result dependent on tax treatment rather than pre-tax earnings.
Results were filed after market close
The consolidated results were filed after market close on 13 August 2026, so there is no same-day market reaction to assess. With no sequential or year-on-year comparison in the release, the main reference points for the next quarter are the operating margin of 21.22% and the ability to move profit before tax above the current loss.
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 | ₹70 cr |
| Other income | ₹3 cr |
| Expenses | ₹55 cr |
| Operating profit | ₹15 cr |
| Operating margin (%) | 21.22% |
| Interest | ₹8 cr |
| Depreciation | ₹13 cr |
| Profit before tax | ₹-4 cr |
| Tax | ₹-4 cr |
| Net profit | ₹0 cr |
| EPS (₹) | ₹0.04 |
What to watch
- Whether operating margin holds above 21.22%.
- Whether profit before tax moves above the current Rs 3.86 cr loss.
- Whether operating profit can cover Rs 7.89 cr of interest and Rs 13.49 cr of depreciation without another tax credit.