NIFTYSML100 Archives - ChartAlert®

BEML – Beml Ltd – Q4 FY26 Financial Results – 29-May-26

BEML’s FY26 shows earnings compression — PAT down >50% on margin erosion, doubled provisions, and ballooning receivables despite revenue growth. CWIP tripling and Metro/Defence/Railways pipeline support thesis, but re‑rating hinges on expense normalization, receivables conversion, and provision reversal. Until OCF/FCF turn positive, execution visibility drives valuation.

1–2 minutes

🔍 Observations

Topline

FY26 revenue grew 8.2% YoY (₹4,02,222L → ₹4,35,053L), modest but consistent; Q4FY26 at ₹1,79,417L surged 8.6% over Q4FY25, confirming H2-heavy execution pattern
Q3FY26 revenue of ₹1,08,327L was unusually weak — sequential collapse of ~40% — pointing to lumpy government order-driven recognition
Other income rose 24% YoY (₹2,373L → ₹2,944L), marginal contributor but directionally positive

Bottomline

FY26 PAT collapsed 51.7% YoY (₹29,252L → ₹14,136L) despite 8.2% revenue growth — a sharp earnings-quality deterioration
Q3FY26 posted a PAT loss of ₹2,238L; Q4FY26 recovered to ₹17,982L, but Q4FY25 PAT was ₹28,755L — Q4 profitability down 37.5% YoY
Effective tax rate distorted by large deferred tax credit of ₹6,965L in FY26 vs. ₹1,161L charge in FY25; underlying cash tax burden (₹12,725L) stayed elevated

Margins

FY26 EBITDA (PBT + Finance Costs + D&A): ₹19,956 + ₹4,539 + ₹8,348 = ₹32,843L on revenue of ₹4,35,053L → EBITDA margin ~7.5%, down from ~13.1% in FY25 (₹40,376 + ₹5,431 + ₹7,134 = ₹52,941L on ₹4,02,222L)
Net margin compressed to 3.2% (₹14,136L / ₹4,35,053L) vs. 7.3% in FY25 — a 410bps contraction
Other expenses surged 38.8% YoY (₹67,558L → ₹93,787L) on only 8.2% revenue growth — the single largest margin erosion driver

Growth Trajectory

Revenue CAGR is low-single-digit; at current trajectory BEML is not a high-growth compounder but an order-execution vehicle dependent on government capex cycles
Provisions rose sharply: current provisions jumped from ₹25,870L to ₹53,259L (+105.9%), signalling warranty, contractual, or contingent liability build-up
Non-current liabilities grew 8.4% (₹1,11,816L → ₹1,21,178L) while equity grew just 1.6% — leverage creeping up structurally

ADSL – Allied Digital Services – Q4 FY26 Earnings Call – 22-May-26

ADSL/ Allied Digital Services’ topline poised for 20–25% growth (AI + pipeline), but bottomline hinges on margin expansion (12.5–13%) and Government project execution; margins face structural tailwinds from AI but near-term pressure from competitive pricing.

1–2 minutes

Also see: ADSL – Allied Digital Services – Q4 FY26 Financial Results – 21-May-26

3-Scenario Framework

📊 Base Case (50% Probability)

Revenue grows 20–22% YoY (₹1,150–1,200 crore) with 12.5–13% EBITDA margins, supported by AI savings and Enterprise segment momentum. Government projects (₹600 crore contracts) award in H2 FY27; Western Railway retender closes by Q3. PAT: ₹40–42 crore (tax rate: 25%).

ADSL – Allied Digital Services – Q4 FY26 Financial Results – 21-May-26

Allied Digital’s FY26 delivered 22.3% revenue growth with 33% EBIT margins, but unallocated costs (~80% of EBIT), ₹17,381L opaque loan outflow, and Q4 cost‑driven loss cloud visibility. Reported 10.2% PAT growth is tax‑driven; with PBT down 28.3%, disclosure clarity is essential before re‑rating.

1–2 minutes

🔍 Observations

Topline

Revenue from operations grew 19.9% YoY (₹80,707L → ₹96,791L), driven predominantly by the Services segment (₹61,800L → ₹75,614L, +22.3% YoY).
Q4FY26 revenue hit ₹26,777L, up 31.0% YoY vs Q4FY25’s ₹20,435L — strongest quarterly print of the year.
Solutions segment contributed ₹21,177L in FY26 vs ₹18,907L in FY25 (+12.0% YoY), growing but at a slower pace than Services.

Bottomline

PAT rose 10.2% YoY (₹3,226L → ₹3,553L) on a consolidated basis, but Q4FY26 turned loss-making at ₹(339)L vs ₹(746)L loss in Q4FY25 — a sequential reversal after a profitable Q3FY26 (₹1,391L).
PBT fell 28.3% YoY (₹6,077L → ₹4,358L) despite higher revenue, signaling significant cost escalation outpacing topline growth.
Deferred tax credit of ₹2,117L in FY26 (vs ₹549L charge in FY25) materially supported reported PAT; underlying operational profitability deteriorated.

Margins

Segment EBIT (Services + Solutions combined) expanded to ₹28,112L vs ₹23,215L (+21.1% YoY), but unallocated expenses surged to ₹22,444L from ₹16,440L (+36.5% YoY), eroding PBT entirely.
Net profit margin compressed to 3.7% in FY26 vs 4.0% in FY25 (PAT/Revenue from operations).
Q4FY26 shows total expenses of ₹28,641L against revenue of ₹26,777L — a negative operating quarter, driven by a spike in purchases & other direct expenses (₹17,229L vs ₹8,278L in Q4FY25) and other expenses (₹5,935L vs ₹7,551L).

Growth Trajectory

Three-year revenue trajectory is directionally positive, but PBT declining 28.3% YoY on 19.9% revenue growth signals a profitability ceiling forming at current cost structures.
Unallocated expenses growing at 36.5% vs revenue at 19.9% is unsustainable; if this gap persists, FY27 PBT will likely compress further.
Services segment EBIT margin: ₹24,942L on ₹75,614L revenue = 33.0% in FY26 vs ₹20,386L on ₹61,800L = 33.0% in FY25 — flat, indicating no operating leverage despite scale.

NCC – NCC Ltd – Q4 FY26 Earnings Call – 16-May-26

NCC’s topline recovery hinges on macro stability and execution pace; margins face structural pressure from input costs; liquidity remains contingent on working capital cycles and subsidiary repayments.

1–2 minutes

Also see: NCC – NCC Ltd – Q4 FY26 Financial Results – 15-May-26

3-Scenario Framework

📊 Base Case (50% Probability)

Macro stability returns post-Q1 FY27; revenue grows 5–10% (low base FY26) with EBITDA margins stable at 8.5–9% (escalation clauses partially offset inflation). Working capital days improve to 90–95 (U.P. JJM payments normalize). Net debt flat at INR 1,600–1,700 cr; EPS INR 9–10. Capex INR 500 cr executed as planned.

GRSE – Garden Reach Shipbuilders – Q4 FY26 Earnings Call – 12-May-26

Garden Reach Shipbuilders/ GRSE’s topline growth hinges on NGC/P-17 Bravo timelines and export traction, while margins depend on defense mix and cost controls; base case supports 10–12% EBITDA margins with double-digit revenue growth.

1–2 minutes

Also see: GRSE – Garden Reach Shipbuilders – Q4 FY26 Financial Results – 28-Apr-26

3-Scenario Framework

📊 Base Case (50% Probability)

NGC signed in Q2FY27, P-17 Bravo contract by FY27-end, and 1 export order in FY27. Revenue grows 12–15% CAGR (FY26–28) with EBITDA margins at 10–11%. Order book stabilizes at INR 20,000 crore by FY28, supported by defense RFPs and marginal commercial wins.

DATAPATTNS – Data Patterns India – Q4 FY26 Financial Results – 14-May-26

Data Patterns’ FY26 shows healthy compounding with zero debt, 43%+ EBITDA margins, and rising R&D assets. Margin compression reflects cost absorption, not erosion; FY27 leverage recovery key. Risks: receivables at 79% of revenue and collapsing customer advances — liquidity hinges on timely government payments and order execution.

1–2 minutes

🔍 Observations

Topline

FY26 revenue of ₹924.77 Cr vs ₹708.35 Cr in FY25 — 30.6% YoY growth, driven by execution ramp-up in defence electronics programmes.
Q4 FY26 revenue at ₹344.85 Cr, down 12.9% vs Q4 FY25 (₹396.21 Cr) — sequential recovery from ₹173.13 Cr in Q3 FY26 confirms strong H2 skew in delivery schedules.
Revenue concentration in H2 remains a structural trait; Q3+Q4 contributed ~56% of FY26 annual revenue.

Bottomline

FY26 PAT of ₹271.37 Cr vs ₹221.81 Cr — 22.3% YoY growth, slightly below revenue growth pace due to higher employee costs and depreciation.
Q4 FY26 PAT of ₹138.38 Cr vs ₹114.08 Cr in Q4 FY25 — 21.3% YoY growth; strong quarter-level profitability.
FY26 EPS of ₹48.47 vs ₹39.62 — 22.3% YoY accretion; no dilution as share capital unchanged at ₹11.20 Cr.

Margins

FY26 EBITDA (PBT + Finance costs + Depreciation): ₹363.54 + ₹12.45 + ₹22.95 = ₹398.94 Cr on revenue of ₹924.77 Cr → EBITDA margin: 43.1% vs FY25: (₹295.34 + ₹12.08 + ₹13.92) / ₹708.35 = 45.7% — 260 bps margin compression YoY.
FY26 net profit margin: ₹271.37 / ₹924.77 = 29.3% vs ₹221.81 / ₹708.35 = 31.3% in FY25 — 200 bps compression.
Employee cost as % of revenue: ₹154.26 / ₹924.77 = 16.7% vs ₹114.06 / ₹708.35 = 16.1% — controlled but rising, reflecting headcount build for future programmes.

Growth Trajectory

3-year revenue CAGR not computable from provided data; FY25-FY26 single-year growth of 30.6% is robust for a defence-focused manufacturing entity.
PAT growth of 22.3% YoY — healthy in absolute terms, but trailing revenue growth signals a margin dilution phase, not a structural deterioration.
Intangible assets under development rose from ₹36.28 Cr to ₹60.86 Cr — ongoing R&D capitalisation signals product pipeline investment ahead of next growth leg.

NCC – NCC Ltd – Q4 FY26 Financial Results – 15-May-26

NCC’s FY26 shows revenue contraction, margin compression, and negative OCF despite capex supercycle, alongside sharp debt build‑up and WC deterioration. FY27 thesis hinges on revenue recovery plus cash flow normalisation. Re‑rating requires margin inflection; absent that, rising interest costs will erode an already thin bottom line.

1–2 minutes

🔍 Observations

Topline

Revenue contracted 6.2% YoY (₹22,199 Cr → ₹20,823 Cr), marking a rare top-line decline for a construction major — Q4FY26 alone held up at ₹6,233 Cr (+1.7% YoY), suggesting execution recovered in H2.
Construction segment dominates at 98.7% of revenue (₹20,559 Cr); Real Estate contributed ₹264 Cr, broadly flat YoY.
Revenue decline despite a large order book signals execution slippage or project mix timing, not demand loss.

Bottomline

Net profit fell 16.7% YoY (₹868 Cr → ₹724 Cr), amplifying the revenue decline due to rising finance costs (+9.6% YoY: ₹680 Cr → ₹745 Cr) and lower other income (₹156 Cr → ₹121 Cr).
Exceptional item of ₹33.67 Cr in Q3FY26 dented full-year PBT; ex-exceptional, underlying PBT would be ₹985.83 Cr vs ₹1,187 Cr reported last year — still a sharp 17% drop.
EPS declined from ₹13.06 to ₹10.76, with minority interest absorbing ₹49 Cr of profits.

Margins

EBIT (segment result before unallocable items) was ₹1,145.61 Cr on revenue of ₹20,823 Cr → segment EBIT margin of 5.5% vs 5.7% in FY25 — marginal compression but meaningful in a thin-margin business.
Net profit margin compressed to 3.5% (₹724 Cr / ₹20,823 Cr) from 3.9% in FY25 (₹868 Cr / ₹22,199 Cr).
Finance cost as % of revenue rose to 3.6% (FY26) from 3.1% (FY25), incrementally eroding bottom-line.

Growth Trajectory

Two-year pattern: FY25 was a peak revenue year; FY26 saw contraction, raising questions about whether FY27 recovery depends on government capex revival and NCC’s execution ramp.
Q4FY26 EBIT (construction) of ₹338 Cr on revenue of ₹6,183 Cr = 5.5% margin, in line with full-year — no meaningful Q4 margin bump, which is unusual for a construction cycle that typically loads billings in Q4.
Profitability erosion is structural (rising interest burden, larger balance sheet, slower revenue) — not a one-quarter blip.

BRIGADE – Brigade Enterprises – Q4 FY26 Earnings Call – 7-May-26

BRIGADE’s topline growth hinges on launch execution and IT demand, while margins and bottomline depend on pricing power and debt discipline.

1–2 minutes

Also see: BRIGADE – Brigade Enterprises – Q4 FY26 Financial Results – 6-May-26

3-Scenario Framework

📊 Base Case (50% Probability)

Drivers: Approvals normalize but remain back-ended, IT demand softens marginally, and commercial leasing absorbs 2M sq. ft.. Pre-sales hit INR 9,000 cr (+20% YoY), with 7–9% price increases offsetting cost inflation. Revenue grows 12–14% YoY, EBITDA margins at 28%, and net debt rises to INR 2,500 cr (Debt/Equity: ~0.30).

ZENTEC – Zen Technologies – Q4 FY26 Earnings Call – 4-May-26

ZENTEC/ Zen Technologies’ topline poised for 115–260% growth in FY2027, with margins stabilizing at 35% EBITDA if execution aligns with order book; downside risks center on order timing, pipeline conversion, and policy clarity.

1–2 minutes

Also see: ZENTEC – Zen Technologies – Q4 FY26 Financial Results – 1-May-26

3-Scenario Framework

📊 Base Case (60% Probability)

Key variables: Order book conversion at 70%, FY2027 revenue at ₹2,000 Cr (₹1,000 Cr from existing book, ₹1,000 Cr new orders), and 35% EBITDA margin achieved via scale. Anti-drone demand sustains at 2x projections, with export orders contributing 15–20% of revenue. Working capital normalizes to 150 days by FY2027 end. Implication: Topline grows ~190% YoY (FY2026: ₹687.7 Cr → FY2027: ~₹2,000 Cr), margins stabilize at 35% EBITDA, and cash flows remain robust with debt-free balance sheet.

BRIGADE – Brigade Enterprises – Q4 FY26 Financial Results – 6-May-26

Brigade’s FY26 shows deliberate transition: monetising residential inventory while building leasing base, suppressing near‑term FCF/earnings. Leasing EBIT +25% and IPUD +88% are long‑term drivers, but cash lags asset creation. Risks: real estate margin erosion, rising debt. Thesis intact for 3–5yr CRE monetisation; near‑term earnings/FCF frustrating.

1–2 minutes

🔍 Observations

Topline

Revenue from operations grew 12.3% YoY (₹5,07,421L → ₹5,69,722L in FY26), driven by Real Estate (+16.7%) and Leasing (+9.9%); Hospitality grew a modest 10.5%.
Q4 FY26 revenue of ₹1,45,760L was flat YoY (+0.2% vs ₹1,46,039L Q4 FY25) and down 7.5% QoQ — sequential softness despite a strong real estate sales pipeline.
Leasing segment crossed ₹1.3L Cr in annual revenue and is becoming a structurally significant revenue contributor alongside Real Estate.

Bottomline

PAT (total) grew 6.5% YoY (₹68,047L → ₹72,476L); however, PAT attributable to owners declined 6.0% (₹68,576L → ₹64,439L) as NCI profits surged — investor-level earnings contracted.
Basic EPS fell to ₹26.36 from ₹28.74 (-8.3% YoY), reflecting both the owner-PAT decline and marginal equity dilution.
Effective tax rate was distorted by large deferred tax credits (₹27,717L vs ₹11,412L in FY25); current tax jumped 50.6% (₹30,292L → ₹45,629L), suggesting growing taxable profits ahead.

Margins

Segment EBIT margin (on segment revenue) was 24.2% in FY26 vs 26.5% in FY25 — Real Estate EBIT dropped sharply from ₹65,003L to ₹56,007L (-13.8%) despite 16.7% revenue growth, indicating cost inflation or mix shift.
PBT margin on revenue from operations: 15.9% (FY26) vs 17.1% (FY25) — compression across the board.
Finance costs fell meaningfully: ₹49,549L → ₹40,944L (-17.4%), partially cushioning the operating margin decline.

Growth Trajectory

3-year revenue CAGR is visibly strong but FY26 incremental operating leverage is missing — revenue +12.3%, EBIT (segment) +4.5%, owner PAT -6.0% — a worrying divergence.
Leasing segment EBIT grew 25.3% (₹58,294L → ₹73,054L), the standout performer; its annuity-like character will increasingly anchor earnings quality.
Real Estate remains the growth engine by size but is delivering declining absolute profit — a structural margin challenge to monitor.