Quarterly Results Archives - Page 4 of 6

BAJAJHFL – Bajaj Housing Finance – Q4 FY26 Financial Results – 27-Apr-26

BajajHFL compounds steadily with 18.4% PAT growth, sub‑0.3% NPAs, and clean equity. CRAR compression (22.46%) flags a capital raise risk within 12–18 months, threatening EPS unless ROE expands. Rising impairments hint at loan‑book seasoning; long‑term housing credit gap tailwinds hinge on disciplined capital adequacy navigation.

1–2 minutes

🔍 Observations

Topline

Total Revenue from Operations grew 16.7% YoY (₹9,554 → ₹11,147 Cr), anchored by Interest Income rising 17.0% (₹8,986 → ₹10,512 Cr) as the loan book expanded sharply.
Fees & commission income surged 47.7% YoY (₹201 → ₹297 Cr), signalling improving cross-sell and processing fee capture.
QoQ revenue was nearly flat (₹2,884 → ₹2,903 Cr, +0.7%), indicating sequential momentum has plateaued near-term.

Bottomline

PAT grew 18.4% YoY (₹2,163 → ₹2,560 Cr), outpacing revenue growth — a positive operating leverage signal.
Q4FY26 PAT of ₹669 Cr grew 14.1% YoY (vs. ₹587 Cr Q4FY25) and was marginally ahead of Q3FY26 (₹665 Cr), showing steady quarterly earnings.
Effective tax rate for FY26 was 22.9% (₹760 Cr tax on ₹3,320 Cr PBT), slightly elevated vs. FY25’s 21.9% — partly due to absence of prior-year tax credits (₹25 Cr benefit in FY25).

Margins

Net Profit Margin improved modestly to 22.96% in FY26 vs. 22.64% in FY25 — limited expansion despite volume growth, as Finance Costs scaled proportionally (₹5,979 → ₹6,759 Cr, +13.1%).
Impairment on financial instruments more than tripled YoY (₹58 → ₹191 Cr), creating a drag on pre-provision profitability — though absolute NPA ratios remain benign.
Cost-to-income compression is gradual: Employee + Other expenses grew 13.5% YoY (₹693 → ₹807 Cr) vs. 16.7% revenue growth — marginal operational efficiency gain.

Growth Trajectory

Loan book grew 24.3% YoY (₹99,513 → ₹1,23,745 Cr), significantly ahead of revenue growth, implying some yield compression or mix shift.
EPS grew 15.0% YoY (₹2.67 → ₹3.07), with no equity dilution in FY26 (share capital unchanged at ₹8,329 Cr) — full growth accrues to existing shareholders.
CRAR compressed sharply from 28.24% to 22.46%, a 578 bps decline YoY — rapid balance sheet expansion is consuming regulatory capital headroom.

ULTRACEMCO – UltraTech Cement – Q4 FY26 Financial Results – 27-Apr-26

UltraTech’s FY27 setup: 45% EBIT growth on 16.5% revenue proves operating leverage; ₹15,316 Cr OCF funds ₹9,678 Cr capex and ₹2,273 Cr dividends. Rising tax rate, sub‑1.0x current ratio, and MSME payables are watchpoints, but dominant positioning and disciplined leverage sustain compounder thesis.

1–2 minutes

🔍 Observations

Topline

Revenue surged 16.5% YoY (₹75,955 Cr → ₹88,512 Cr in FY26), with Q4 FY26 alone up 11.9% YoY (₹23,063 Cr → ₹25,799 Cr) — scale and pricing power both contributing.
Q4 FY26 sequential jump of 18.2% (₹21,830 Cr → ₹25,799 Cr) signals strong seasonal demand recovery and volume ramp-up post-monsoon.
Freight (₹19,169 Cr) and Power & Fuel (₹19,597 Cr) together consumed ~43.9% of FY26 revenue — logistics and energy remain the dominant cost axes.

Bottomline

Net profit grew 35.6% YoY (₹6,040 Cr → ₹8,188 Cr), outpacing revenue growth by ~19 ppts — operating leverage is clearly working.
EPS expanded from ₹205.30 to ₹277.62 (basic, FY26 vs FY25), a 35.2% jump, fully reflecting earnings accretion to equity shareholders.
Tax outflow spiked sharply — current tax more than doubled (₹828 Cr → ₹2,314 Cr), partially offset by deferred tax reduction (₹660 Cr → ₹425 Cr); effective tax rate rose meaningfully.

Margins

EBIT margin (ex-exceptional, ex-associates): FY26 = 11,081.57 / 88,511.53 = 12.5% vs FY25 = 7,636.13 / 75,955.13 = 10.1% — 240 bps expansion YoY.
Net profit margin widened from 8% (FY25) to 9% (FY26); Q4 FY26 hit 11.6% (₹3,000 Cr / ₹25,799 Cr) — indicating margin accretion accelerating in H2.
Operating margin (SEBI-disclosed) improved from 17% (FY25) to 19% (FY26); Q4 FY26 touched 22% — the quarterly high signals structural cost optimization bearing fruit.

Growth Trajectory

FY26 EBIT grew 45.1% YoY (₹7,636 Cr → ₹11,082 Cr) on 16.5% revenue growth — disproportionate profit growth confirms operating leverage inflection.
Kesoram Industries integration adds inorganic volume; FY25 saw India Cements acquisition (₹10,113 Cr cash outflow) — FY26 capex of ₹9,678 Cr sustains organic expansion simultaneously.
Debtors turnover improved marginally (14.74x → 14.66x); inventory turnover strengthened (8.38x → 9.08x) — working capital velocity is tightening, not loosening.

VBL – Varun Beverages – Q4 FY26 Financial Results – 27-Apr-26

VBL’s FY26 shows rare scale‑driven PAT outpacing revenue, with minimal leverage and strong coverage ensuring resilience. Key risk: capex‑driven D&A outstripping volumes in off‑season, exaggerating seasonality. Q1FY27 revenue is the litmus test for whether expanded capacity delivers throughput to justify the investment cycle.

1–2 minutes

🔍 Observations

Topline

Q4FY26 revenue at ₹67,215 mn grew 18.3% YoY — volume-led expansion with geographic scale absorbing a strong base effect.
Full-year revenue of ₹222,256 mn reflects diversified market penetration; Q4 alone contributed 30.2% of annual revenue, confirming heavy peak-season concentration.
QoQ surge of 55.1% (Q3→Q4) is structurally driven by pre-summer stocking; not a signal of demand acceleration.

Bottomline

Q4 PAT of ₹8,787 mn grew 20.1% YoY, outpacing revenue growth — operating leverage is working.
FY26 PAT of ₹30,620 mn with net margin of 13.8% represents healthy profitability for an FMCG-manufacturing hybrid.
Share of losses from associates/JVs (₹60 mn FY26) is marginal but watch for escalation as international bets mature.

Margins

Q4 EBITDA margin expanded to 23.3% from 22.7% YoY — a 60 bps improvement driven by stable raw material intensity (material costs flat at ~47% of revenue).
FY26 EBITDA margin at 24.3% is meaningfully stronger than Q4 standalone, indicating Q1–Q3 quarters carry better operating efficiency — likely mix and scale effects.
D&A jumped 30.9% YoY in Q4 (₹3,568 mn vs ₹2,725 mn), reflecting ongoing capex digestion; net margins held steady because top-line growth absorbed it.

Growth Trajectory

PAT growth (20.1%) exceeding revenue growth (18.3%) in Q4 confirms positive operating leverage at scale.
Employee costs as % of revenue crept up — Q4FY26 at 9.2% vs 9.0% in Q4FY25 — modest but worth monitoring as headcount scales with new geographies.
EPS of ₹8.98 for FY26 with a diluted share count implying ~3,382 mn shares; per-share earnings growth requires full FY25 EPS for YoY comparison, which is not available in provided data.

AXISBANK – Axis Bank – Q4 FY26 Financial Results – 25-Apr-26

Axis Bank’s core engine holds with NII growth and digital scale, but FY26 PAT fell on heavy provisions (₹3,572 Cr vs ₹1,550 Cr). Aggressive 18.6% loan growth via borrowings risks NIMs and capital; FY27 hinges on deposit mobilisation, PBT trajectory, and provision normalization.

1–2 minutes

🔍 Observations

Topline

Total income grew 4.0% YoY (₹1,55,917 Cr → ₹1,62,212 Cr); interest earned up 4.1% (₹1,27,374 Cr → ₹1,32,538 Cr), led by advances income (+3.0%) and investment income (+10.4%).
Other income slipped 2.4% YoY in Q4 (₹7,506 Cr → ₹6,972 Cr), dragging quarterly topline despite sequential NII stability.
Retail Banking remains the dominant revenue engine at ₹1,49,402 Cr (62% of gross segment revenue); Digital Banking sub-segment surged 15.5% YoY (₹34,320 Cr → ₹39,656 Cr).

Bottomline

Consolidated net profit fell 6.0% YoY (₹28,055 Cr → ₹26,385 Cr), driven by a 66.8% spike in provisions (₹8,166 Cr → ₹13,617 Cr), not operational weakness.
Q4 FY26 net profit of ₹7,603 Cr grew 1.7% YoY (vs. ₹7,475 Cr), recovering sequentially from Q3’s ₹7,011 Cr — signals stabilization.
A negative tax charge of ₹(385 Cr) in Q4 FY26 (vs. ₹2,405 Cr in Q4 FY25) inflated quarterly PAT; normalized earnings are lower.

Margins

Net Interest Margin proxy: NII (Interest Earned − Interest Expended) = ₹58,463 Cr in FY26 vs. ₹56,338 Cr in FY25, up 3.8% YoY — modest spread compression signals cost-of-funds pressure.
Operating profit margin (Operating Profit / Total Income): FY26 = 28.3% vs. FY25 = 28.8% — marginal deterioration; cost growth (opex +5.6% YoY) slightly outpaced income growth.
PBT margin compressed sharply: FY26 = 19.9% vs. FY25 = 23.6%, entirely attributable to the surge in provisions.

Growth Trajectory

Advances grew 18.6% YoY (₹10,81,229 Cr → ₹12,82,392 Cr); deposits grew 13.9% YoY (₹11,70,921 Cr → ₹13,33,791 Cr) — loan growth outpacing deposit accretion raises funding mix questions.
Digital Banking profit nearly doubled YoY (₹2,198 Cr → ₹4,255 Cr), now contributing 44% of Retail segment profit — a structural positive for cost efficiency.
Treasury and Corporate Banking profits fell sharply YoY (Treasury: −29.6%; Corporate: −8.0%), reflecting higher credit costs and MTM losses rather than revenue erosion.

ATUL – Atul Ltd – Q4 FY26 Financial Results – 24-Apr-26

Atul Ltd’s FY26 saw 40% PAT growth, margin gains, and tripled OCF on a debt‑free balance sheet. Life Science Chemicals EBIT at 23.1% and rising corpus signal durability. Risks: capex slowdown, MSME exposure, reliance on investment gains. FY27 hinges on capex revival.

1–2 minutes

🔍 Observations

Topline

Revenue from operations grew 12.4% YoY (₹5,583 Cr → ₹6,274 Cr in FY26), with Q4FY26 accelerating to 15.1% YoY (₹1,452 Cr → ₹1,670 Cr) — momentum is building into year-end.
Performance & Other Chemicals dominates at 73.5% of FY26 segment revenue (₹4,609 Cr), growing 13.6% YoY; Life Science Chemicals contributed ₹1,805 Cr (+6.7% YoY) — both segments in sustained expansion.
Q4FY26 inter-segment revenue fell to ₹52 Cr from ₹64 Cr in Q4FY25, indicating less internal cross-charging and cleaner external revenue quality.

Bottomline

PAT attributable to owners surged 40.1% YoY (₹484 Cr → ₹678 Cr in FY26); Q4FY26 PAT jumped 66.2% YoY (₹127 Cr → ₹210 Cr) — the most decisive quarterly beat of the year.
Basic EPS expanded from ₹164.37 to ₹230.25 (+40.1% YoY), with no dilution — all earnings growth is owner-accruing.
A deferred tax charge of ₹39.6 Cr in FY26 (vs. ₹35.5 Cr in FY25) signals continued capex-linked timing differences; despite this, effective tax rate declined to 23.4% from 27.9%, partly aided by ₹14.2 Cr prior-year tax write-back in Q4.

Margins

EBITDA (PBT + Finance costs + D&A, ex-other income): FY26 = ₹900.5 − ₹202.9 + ₹17.4 + ₹322.1 = ₹1,037.1 Cr on revenue of ₹6,273.5 Cr → EBITDA margin of 16.5% vs. FY25: (₹692.5 − ₹109 + ₹24 + ₹316.8) = ₹924.3 Cr / ₹5,583.4 Cr = 16.6% — broadly stable.
Net profit margin (PAT attributable / Revenue): FY26 = ₹677.9 / ₹6,273.5 = 10.8% vs. FY25 = ₹483.9 / ₹5,583.4 = 8.7% — 210 bps expansion, a material quality improvement.
Power & fuel costs declined as a share of revenue (FY26: 10.3% vs. FY25: 11.7%), while material costs held at 51.9% — input efficiency is improving on the energy side.

Growth Trajectory

Revenue CAGR implied over FY25–FY26 is 12.4%; at Q4FY26 run-rate (₹1,670 Cr/quarter × 4 = ~₹6,680 Cr annualised), FY27 growth is tracking above trend.
Segment EBIT margin for Life Science Chemicals: FY26 = ₹417 Cr / ₹1,805 Cr = 23.1% vs. FY25 = ₹347 Cr / ₹1,692 Cr = 20.5% — 260 bps expansion; Performance Chemicals: 9.0% vs. 8.5% — incremental but consistent.
Other income nearly doubled YoY (₹109 Cr → ₹203 Cr), partly from investment gains (₹77 Cr FVTPL gains), suggesting the investment corpus is growing as a structural earnings contributor.

SHRIRAMFIN – Shriram Finance – Q4 FY26 Financial Results – 24-Apr-26

Shriram Finance’s FY26 delivered 21% PAT growth, a 41% Q4 surge, and stronger deposits. Liquidity buffers fell 63% and derivative outflows weigh near term, but solvency intact. Earnings expansion hinges on AUM compounding and credit cost efficiency; risks are borrowing cost spikes or asset quality stress in CV/SME.

1–2 minutes

🔍 Observations

Topline

Interest income scaled 15.8% YoY to ₹46,658 Cr in FY26 (from ₹40,308 Cr), reflecting robust AUM expansion as the loan book grew ~15.1% YoY to ₹2,82,452 Cr.
Fee and commission income contracted 27.6% YoY (₹682 Cr → ₹494 Cr), partially offset by higher other operating income (+22.5% YoY); total revenue from operations rose 15.1% YoY to ₹48,133 Cr.
Q4FY26 interest income of ₹12,094 Cr grew 12.1% YoY and 2.1% QoQ, confirming steady sequential momentum with no quarterly deceleration.

Bottomline

Reported PAT from continuing operations grew 6.3% YoY to ₹10,005 Cr; stripping FY25’s exceptional gain of ₹1,554 Cr, normalized PAT growth is a stronger ~21% YoY — a cleaner read on operating leverage.
Q4FY26 PAT of ₹3,015 Cr surged 40.9% YoY (vs. ₹2,139 Cr in Q4FY25) and 19.4% QoQ, the sharpest quarterly earnings print in the visible period.
Basic EPS from continuing operations rose to ₹53.29 in FY26 from ₹50.19 in FY25 (+6.2% reported; ~21% normalized), with dilution negligible given marginal ESOP issuance.

Margins

Finance costs as a share of total income expanded to 44.7% in FY26 (from 44.1% in FY25), reflecting rising cost of funds pressure even as the loan book grows.
Net profit margin (PAT/Total Income, continuing ops) came in at 20.8% for FY26 vs. 22.5% in FY25 on a reported basis; on a normalized basis (ex-exceptional), FY25 base PAT margin was ~18.5%, indicating genuine margin expansion of ~230 bps.
Impairment charges as a share of total income remained stable at ~11.1% in FY26 (₹5,339 Cr / ₹48,133 Cr) vs. 12.7% in FY25 — improving credit cost efficiency on a growing book.

Growth Trajectory

AUM CAGR implied over FY25–26 at ~15%, with deposit-funded growth accelerating: deposits grew 23.9% YoY (₹56,086 Cr → ₹69,480 Cr), signaling a deliberate liability mix shift toward stickier retail funding.
Operating profit (PBT before exceptional) compounded from ₹10,949 Cr to ₹13,300 Cr (+21.5% YoY), demonstrating durable earnings power independent of one-off gains.
Q4FY26 PBT of ₹3,917 Cr vs. ₹2,772 Cr in Q4FY25 (+41.3% YoY) signals an accelerating exit run rate, a positive leading indicator for FY27.

LODHA – Lodha Developers – Formerly Macrotech – Q4 FY26 Financial Results – 24-Apr-26

Lodha sustains 20%+ PAT growth with EPS/margin recovery, but OCF down 38.7%, receivables doubled, borrowings surged 205%. Rising liabilities—likely customer advances—signal delivery obligations. OCF recovery and receivables normalization in H1FY27 are critical before assigning premium to earnings trajectory.

1–2 minutes

🔍 Observations

Topline

Revenue from Operations grew 21.0% YoY (₹1,37,795M → ₹1,66,762M in FY26), sustaining double-digit growth as pre-sales momentum converts to recognised revenue.
Q4FY26 revenue of ₹47,135M grew 11.6% YoY and 0.9% QoQ — sequential flattening signals near-term recognition pacing, not demand weakness.
Other Income declined 18.6% QoQ in Q4 (₹1,960M → ₹1,270M), dragging total income growth marginally below operating revenue growth.

Bottomline

PAT grew 23.9% YoY (₹27,666M → ₹34,307M), outpacing revenue growth — a positive operating leverage signal.
Q4FY26 PAT of ₹10,081M grew 9.3% YoY and 5.3% QoQ, maintaining sequential profit momentum through the year.
Basic EPS expanded from ₹27.76 to ₹34.34 (+23.7% YoY), with minimal dilution confirming equity-efficient earnings compounding.

Margins

FY26 Operating Margin contracted 214bps YoY (36.03% → 33.89%), as Cost of Projects (₹97,964M) and Other Expenses (₹13,002M, +30.2% YoY) outpaced revenue growth.
Net Profit Margin improved 52bps YoY (19.52% → 20.04%), aided by a positive deferred tax swing of ₹527M vs. a ₹834M drag in FY25.
Q4FY26 operating margin recovered to 34.97% from Q3’s 31.97%, suggesting project mix improvement in the seasonally stronger quarter.

Growth Trajectory

FY26 PAT CAGR (implied two-year) and single-year 23.9% growth reinforce a compounding profit curve well above nominal GDP.
Net Worth grew 15.7% YoY (₹1,98,102M → ₹2,29,141M), providing an expanding equity base for project leverage.
Inventory of ₹4,02,538M grew 10.4% YoY, indicating active project pipeline build — manageable if pre-sales coverage remains robust.

RELIANCE – Reliance Industries – Q4 FY26 Financial Results – 24-Apr-26

Reliance FY26 shows Digital/Retail scaling into quality earnings, O2C margin headwinds, FCF nearly doubled, leverage steady at 0.41x. Yet opacity in Other Liabilities, slower receivables, and rising finance costs warrant scrutiny before the next energy‑linked capex cycle intensifies.

2–3 minutes

🔍 Observations

Topline

Revenue from Operations crossed ₹10.75L Cr in FY26 (+9.7% YoY vs ₹9.80L Cr), with Q4FY26 posting the strongest quarterly revenue at ₹2.99L Cr — a sequential surge of +10.8% driven by an O2C volume spike and Retail expansion.
Digital Services (Jio) and Retail together contributed ~51% of gross segment revenue in FY26, signalling a structural pivot away from O2C dominance toward consumer-facing businesses.
O2C remains the largest segment at ₹6.62L Cr (FY26), but its revenue share in gross segment revenue slipped to ~50% from ~53% in FY25, reflecting faster growth in Retail (+12.1%) and Digital (+14.3%).

Bottomline

Consolidated PAT (post-associates) grew 17.8% YoY to ₹95,754 Cr in FY26; attributable net profit to owners expanded 16.0% YoY to ₹80,775 Cr, validating earnings accretion at the parent level.
Q4FY26 PAT at ₹20,589 Cr came in weaker both QoQ (−7.6% vs ₹22,290 Cr in Q3FY26) and YoY (−8.9% vs ₹22,611 Cr in Q4FY25), largely due to a deferred tax charge spike (₹5,735 Cr vs ₹3,763 Cr in Q4FY25) that compressed reported profits disproportionately.
Basic EPS for FY26 stood at ₹59.69 vs ₹51.47 in FY25 — a 16% expansion — confirming earnings dilution has been well-managed despite increased NCI profit share.

Margins

FY26 operating margin (per reported ratio) contracted to 10.3% vs 10.5% in FY25; Q4FY26 margin compressed sharply to 9.0% vs 10.7% in Q3FY26, flagging quarterly cost pressure — particularly in O2C where EBITDA fell to ₹14,520 Cr from ₹16,507 Cr QoQ.
Digital Services EBITDA margin is structurally superior: segment EBITDA of ₹76,560 Cr on revenue of ₹1,76,164 Cr implies ~43.5% EBITDA margin in FY26 vs ~42.2% in FY25 — the only segment with material YoY margin expansion.
Net Profit Margin (FY26) improved to 8.1% from 7.6% in FY25 despite operating margin compression, aided by elevated Other Income (₹28,962 Cr vs ₹17,978 Cr YoY — partially dividend income of ₹9,100 Cr).

Growth Trajectory

Total Segment EBITDA grew 11.0% YoY to ₹1,94,047 Cr in FY26, with Digital (+17.8%) and Retail (+7.7%) outpacing O2C (+10.1%), supporting a durable multi-engine earnings architecture.
FY26 Revenue CAGR implied over FY25 base: +9.7%; PAT CAGR: +18.4% — PAT growing nearly 2x the revenue pace signals operating leverage and cost discipline at the group level.
Oil & Gas segment revenue declined 5.4% YoY (₹23,861 Cr vs ₹25,211 Cr) and EBITDA fell 10.1% — a structural drag as KG-D6 production matures without visible near-term volume catalyst.

UNIONBANK – Union Bank of India – Q4 FY26 Financial Results – 23-Apr-26

Union Bank’s FY26 PAT up 7.8% on provisions, while PPOP fell 8%, signalling NPA gains are spent. Strong capital (CAR 18.78%, CET‑1 16.39%) and retail mix help, but FY27 hinges on NIM defence, cost control, and deposit mobilisation. Watch credit‑deposit ratio and PPOP trends.

1–2 minutes

🔍 Observations

Topline

Interest earned flat YoY at ₹1,06,799 Cr (FY26) vs ₹1,06,600 Cr (FY25), masking a shift: advances interest rose ₹841 Cr while investment income fell ₹758 Cr — credit mix improving at the margin.
Other income essentially flat at ₹21,601 Cr (FY26) vs ₹21,562 Cr (FY25); Q4FY26 dipped QoQ from ₹5,183 Cr to ₹5,999 Cr, suggesting lumpy fee/treasury contributions.
Total income held at ₹1,28,400 Cr (FY26) vs ₹1,28,162 Cr (FY25) — the topline ceiling is a structural concern for a bank of this size.

Bottomline

Net profit rose 7.8% YoY to ₹19,430 Cr (FY26) vs ₹18,027 Cr (FY25), driven almost entirely by a ₹3,347 Cr collapse in NPA provisions (₹2,327 Cr vs ₹7,426 Cr).
Q4FY26 PAT of ₹5,504 Cr beat Q4FY25’s ₹5,011 Cr by 9.8%, aided by lower provisions and a sharp jump in associate profit share (₹170 Cr vs ₹10 Cr).
Tax expenses virtually unchanged YoY (₹5,504 Cr vs ₹5,503 Cr) despite higher PBT — effective tax rate compressed to 22.7% (FY26) from 23.5% (FY25).

Margins

Net profit margin expanded to 15.1% (FY26) from 14.1% (FY25); Q4FY26 at 16.8% is the best quarterly print, validating improving provision coverage.
Operating margin contracted to 22.4% (FY26) from 24.4% (FY25) — operating expenses grew 7.7% YoY (₹30,206 Cr vs ₹28,044 Cr) while total income stagnated; cost pressure is real.
PPOP (operating profit) declined 8% YoY to ₹28,716 Cr (FY26) from ₹31,202 Cr (FY25) — the bank’s pre-provision earnings power is weakening.

Growth Trajectory

Advances grew 10.5% YoY to ₹10,57,188 Cr vs ₹9,56,728 Cr — healthy, though the ₹1,02,786 Cr incremental deployment absorbed significant liquidity.
Retail banking segment revenue grew 5.5% YoY to ₹47,574 Cr; corporate/wholesale revenue fell 3.6% to ₹44,379 Cr — mix shift toward retail is deliberate and margin-accretive over time.
EPS grew 7.8% YoY to ₹25.45 (FY26) vs ₹23.62 (FY25) — modest, given no equity dilution and a significant provision tailwind; organic earnings growth is softer.

TATACAP – Tata Capital – Q4 FY26 Financial Results – 23-Apr-26

Tata Capital’s FY26 marks inflection with 33.8% PAT growth, 15.4% margins, and 20.8% loan CAGR. ₹8,583 Cr equity raise de‑leverages balance sheet. Risks: negative OCF, reserve compression, credit cost trajectory. Long‑term profitability in financing segment compelling; near‑term liquidity and investment volatility warrant caution.

1–2 minutes

🔍 Observations

Topline

Total income grew 11.3% YoY (₹28,370 Cr → ₹31,583 Cr in FY26), led by interest income rising 11.4% (₹25,724 Cr → ₹28,652 Cr) — financing activity remains the dominant growth engine at 97.5% of net segment revenue.
Q4FY26 total income hit ₹8,162 Cr, up 8.7% QoQ and 8.7% YoY — sequential momentum is steady and broad-based.
Fee & commission income declined 4.4% YoY (₹1,774 Cr → ₹1,696 Cr), a rare soft spot in an otherwise strong topline; rental income surged 63.4% YoY (₹272 Cr → ₹445 Cr) as a partially offsetting non-core contributor.

Bottomline

PAT nearly doubled over two years: FY26 PAT ₹4,891 Cr vs FY25 ₹3,655 Cr, a 33.8% YoY jump — Q4FY26 alone delivered ₹1,466 Cr, up 46.7% YoY (₹1,000 Cr → ₹1,466 Cr).
Basic EPS expanded from ₹9.32 in FY25 to ₹11.76 in FY26 (+26.2% YoY), reflecting earnings accretion despite equity dilution from the FY26 capital raise.
Impairment on financial instruments remained elevated at ₹3,023 Cr in FY26 (vs ₹2,827 Cr in FY25, +6.9% YoY), capping bottom-line upside even as operating leverage kicked in.

Margins

Net profit margin expanded sharply: 12.94% in FY25 → 15.36% in FY26 (+242 bps); Q4FY26 margin hit 18.41% — highest in the reported periods, pointing to structural improvement in cost absorption.
Finance costs as a % of total income: 53.0% in FY25 vs 50.6% in FY26 — modest but meaningful compression signals improving funding efficiency.
Operating leverage visible: total expenses grew 6.5% YoY (₹23,449 Cr → ₹24,981 Cr) against 11.3% income growth — expense growth running at roughly half the revenue growth rate.

Growth Trajectory

Loan book expanded 20.8% YoY (₹2,21,950 Cr → ₹2,68,203 Cr), sustaining the platform for forward interest income growth.
Financing segment EBIT grew 34.7% YoY (₹4,751 Cr → ₹6,402 Cr), confirming that core business profitability — not treasury or investment gains — is driving the upgrade cycle.
Net worth surged 38.8% YoY (₹32,443 Cr → ₹44,824 Cr), primarily via the ₹8,583 Cr equity raise in FY26 — significantly strengthening the capital base for the next growth phase.