Interest and depreciation narrowed Q1 profit conversion to Rs 5.68 cr
Standalone operating margin was 4.87%, while other income of Rs 0.12 cr did little to supplement pre-tax earnings.
Filed 13 Aug 2026, 13:57 IST · VMSTMT (VMSTMT)
Key takeaways
- Standalone Q1FY27 operating profit of Rs 12.07 cr converted to Rs 5.68 cr of profit before tax after Rs 3.96 cr of interest and Rs 2.55 cr of depreciation.
- Operating margin was 4.87%, as expenses of Rs 235.69 cr absorbed most of revenue of Rs 247.76 cr.
- Net profit was Rs 4.47 cr after a 21.36% tax rate, while other income was only Rs 0.12 cr.
Operating profit did not fully convert into pre-tax earnings
The standalone business generated Rs 12.07 cr of operating profit, but interest of Rs 3.96 cr and depreciation of Rs 2.55 cr reduced profit before tax to Rs 5.68 cr. Other income of Rs 0.12 cr was too small to materially change that conversion.
Low operating margin leaves limited cost cushion
The 4.87% operating margin indicates that expenses of Rs 235.69 cr consumed most of the Rs 247.76 cr revenue base. Net profit stood at Rs 4.47 cr after tax of Rs 1.21 cr, with no meaningful support from other income.
What to track after the Q1FY27 base
The next quarterly update will show whether operating margin moves from the 4.87% reported in Q1FY27. Interest expense relative to Rs 3.96 cr and depreciation relative to Rs 2.55 cr will remain important for profit conversion.
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 | ₹248 cr |
| Other income | ₹0 cr |
| Expenses | ₹236 cr |
| Operating profit | ₹12 cr |
| Operating margin (%) | 4.87% |
| Interest | ₹4 cr |
| Depreciation | ₹3 cr |
| Profit before tax | ₹6 cr |
| Tax | ₹1 cr |
| Net profit | ₹4 cr |
| EPS (₹) | ₹0.90 |
What to watch
- Operating margin versus the 4.87% Q1FY27 base.
- Interest expense versus Rs 3.96 cr and depreciation versus Rs 2.55 cr.
- Other income relative to Rs 0.12 cr.