T T Ltd Q1 Results: Net profit jumps 54% YoY, warrants lapse
T T Limited posted a net profit of ₹65.62 lakh in Q1FY27, up 53.8% YoY, aided by deferred tax benefits despite a 3.6% drop in revenue to ₹4,642.27 lakh. The Board cancelled 8,00,000 lapsed convertible warrants, forfeiting ₹2.44 crore, and appointed Shivam Sharma as Company Secretary.
*this image is generated using AI for illustrative purposes only.
T T Limited reported a net profit of ₹65.62 lakh for the quarter ended June 30, 2026, marking a 53.8% year-on-year increase from ₹42.72 lakh in Q1FY26. The gain was primarily driven by a significant deferred tax benefit of ₹49.03 lakh, which offset a lower operating profit before tax of ₹25.90 lakh compared to ₹44.66 lakh in the prior year. This improvement in bottom-line profitability comes despite a contraction in top-line revenue, signaling a shift in the company’s tax-adjusted earnings structure for the period.
Revenue from operations stood at ₹4,642.27 lakh, down 3.6% from ₹4,816.92 lakh in Q1FY26. Total revenue, including other income of ₹2.16 lakh, decreased to ₹4,644.44 lakh from ₹4,826.59 lakh previously. The decline in operational revenue was accompanied by a reduction in cost of materials consumed, which fell to ₹2,791.18 lakh from ₹3,258.09 lakh in the corresponding quarter of FY26. Employee benefit expenses rose slightly to ₹397.08 lakh from ₹320.00 lakh, while finance costs declined to ₹183.91 lakh from ₹214.08 lakh.
What the Numbers Show
The divergence between operating performance and net profit highlights the impact of tax adjustments on T T Limited’s results. While profit before tax fell by approximately 42% to ₹25.90 lakh, the net profit surged due to a deferred tax asset recognition of ₹49.03 lakh, compared to only ₹7.31 lakh in Q1FY26. Current tax expense remained relatively stable at ₹9.31 lakh. This suggests that the reported profitability growth is largely non-operational, stemming from balance sheet tax adjustments rather than core business expansion.
| Metric | Q1FY27 (₹ Lakh) | Q1FY26 (₹ Lakh) | Change |
|---|---|---|---|
| Revenue from Operations | 4,642.27 | 4,816.92 | -3.6% |
| Profit Before Tax | 25.90 | 44.66 | -42.0% |
| Net Profit | 65.62 | 42.72 | +53.8% |
| EPS (Basic) | ₹0.03 | ₹0.02 | +50.0% |
In corporate actions, the Board of Directors approved the cancellation of 8,00,000 convertible warrants that lapsed on June 15, 2026, after holders failed to pay the balance 75% consideration. Consequently, the company forfeited the upfront subscription amount of ₹2.44 crore (₹2,44,00,000), representing 25% of the issue price. The warrant holders, Vasm Consultants Private Limited and Subhash Phootarmal Rathod, cease to have any entitlement to conversion into equity shares. There is no change in the paid-up equity share capital of ₹2,583.11 lakh.
The Board also accepted the resignation of Rahul Maurya as Company Secretary & Compliance Officer, effective June 25, 2026, citing alternate career opportunities. In his place, Shivam Sharma was appointed as Company Secretary & Compliance Officer with effect from August 06, 2026. Sharma, an Associate Member of the Institute of Company Secretaries of India, brings over ten years of experience in corporate laws. The financial results were reviewed by Statutory Auditors Doogar & Associates and approved by the Audit Committee.
Historical Stock Returns for TTL
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +0.16% | +0.16% | -6.41% | -31.44% | -51.17% | -91.19% |
How sustainable is T T Limited's profitability if the deferred tax benefits do not recur in subsequent quarters?
What strategic initiatives is management implementing to reverse the 3.6% decline in operational revenue?
Could the forfeiture of ₹2.44 crore from lapsed warrants indicate broader challenges in raising capital or investor confidence?
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