Interest costs wiped out Zuari Industries' operating profit
Other income of Rs 54.77 cr could not offset Rs 61.54 cr of interest and Rs 7.98 cr of depreciation in the consolidated Q1FY27 results.
Filed 13 Aug 2026, 13:30 IST · ZUARIIND (ZUARIIND)
Key takeaways
- Consolidated operating profit was Rs 14.19 cr, but interest of Rs 61.54 cr pushed profit before tax to a loss of Rs 0.57 cr.
- Other income of Rs 54.77 cr did not offset finance costs and depreciation, leaving net profit at just Rs 0.05 cr.
- The reported tax rate was 109.01%, as a tax credit of Rs 0.62 cr turned the pre-tax loss into a marginal profit.
Operating profit did not cover finance costs
Zuari Industries reported consolidated operating profit of Rs 14.19 cr on revenue of Rs 311.93 cr. Interest expense of Rs 61.54 cr was several times operating profit, while depreciation added Rs 7.98 cr of pressure below the operating line. The result was a pre-tax loss of Rs 0.57 cr.
Other income and tax credit produced a marginal profit
Other income of Rs 54.77 cr partly offset the finance and depreciation burden but did not prevent a pre-tax loss. A tax credit of Rs 0.62 cr resulted in net profit of Rs 0.05 cr and EPS of Rs 0.20. The 109.01% tax rate reflects the small loss before tax and the reported tax credit, rather than operating profitability.
No comparison or market reaction is available in this release
The reported quarter has no year-on-year or sequential comparison, and no multi-quarter trend is provided. The stock reaction is also not covered here, so the quarter is best read through its cost structure: operating profit was positive, but interest expense dominated the consolidated result.
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 | ₹312 cr |
| Other income | ₹55 cr |
| Expenses | ₹298 cr |
| Operating profit | ₹14 cr |
| Operating margin (%) | 4.55% |
| Interest | ₹62 cr |
| Depreciation | ₹8 cr |
| Profit before tax | ₹-1 cr |
| Tax | ₹-1 cr |
| Net profit | ₹0 cr |
| EPS (₹) | ₹0.20 |
What to watch
- Whether operating profit remains positive while interest expense is Rs 61.54 cr.
- Whether other income remains material relative to revenue of Rs 311.93 cr.
- Whether the reported tax rate moves away from 109.01% as profit before tax changes.