1–2 minutes
🔍 Observations
Topline
- Revenue from operations surged 38% YoY (₹5,07,569 → ₹7,00,216 lakh), marking the sharpest annual jump in recent history — driven by accelerated project execution and B&D spares ramp-up.
- Q4FY26 revenue of ₹2,11,921 lakh grew 29% YoY over Q4FY25 (₹1,64,204 lakh), confirming Q4 as the strongest delivery quarter — a structural pattern in defence shipbuilding.
- Sub-contracting charges jumped 145% YoY (₹48,357 → ₹1,18,252 lakh), signalling heavy outsourcing to meet scale — execution velocity is being bought, not organically built.
Bottomline
- PAT grew 42% YoY (₹52,740 → ₹74,793 lakh); EPS expanded from ₹46.04 to ₹65.29 — value accrual to shareholders is real and material.
- Q4FY26 PAT of ₹30,320 lakh grew 24% YoY over Q4FY25 (₹24,425 lakh), with strong sequential recovery from Q3FY26 (₹17,077 lakh) — quarter-end billing cycles driving lumpy earnings.
- Other income fell 18% YoY (₹33,484 → ₹27,439 lakh), reducing the earnings quality cushion; core operating profit is now doing heavier lifting.
Margins
- Net profit margin improved marginally: 10.39% → 10.68% on revenue from operations basis — expansion is real but thin, compressed by the sub-contracting surge.
- EBITDA proxy (PBT + D&A + Finance Costs): FY26 = ₹1,00,470 + ₹4,887 + ₹1,612 = ₹1,06,969 lakh vs FY25 = ₹70,329 + ₹4,249 + ₹1,032 = ₹75,610 lakh — EBITDA margin on revenue ~15.3% vs ~14.9%, modest improvement.
- Material + sub-contracting as % of revenue: FY26 = (₹3,42,172 + ₹1,18,252) / ₹7,00,216 = 65.7% vs FY25 = (₹3,32,470 + ₹48,357) / ₹5,07,569 = 75.2% — a significant input cost efficiency gain despite the outsourcing surge.
Growth Trajectory
- Revenue CAGR implied over one year: 38% — exceptional for a PSU shipbuilder; order book execution is accelerating.
- PAT growth of 42% YoY outpacing revenue growth of 38% — operating leverage is beginning to show, though partly offset by sub-contracting costs.
- Inventory turnover improved: 1.25x → 1.80x — WIP is converting faster, a direct outcome of increased throughput.