Quarterly Results Archives - Page 6 of 7

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.

LTM (formerly LTIMindtree) – Q4 FY26 Financial Results – 23-Apr-26

LTIMindtree exits FY26 with record Q4 revenue and margin recovery, yet cost overruns outpace topline. BFSI compression and TMC stagnation weigh near term. Strong FCF and fortress balance sheet support compounder status, but FY27 re‑rating hinges on cost rationalisation and BFSI momentum.

1–2 minutes

🔍 Observations

Topline

Revenue from operations hit ₹1,12,917 mn in Q4FY26, up 15.6% YoY (vs ₹97,717 mn in Q4FY25) and 4.7% QoQ — the strongest sequential print in FY26, signalling accelerating demand recovery.
Full-year FY26 revenue of ₹4,23,076 mn grew 11.3% YoY (vs ₹3,80,081 mn in FY25), with the growth rate weighted toward H2, suggesting deal ramp-ups gained momentum through the year.
Manufacturing & Resources (₹85,478 mn, +18.5% YoY) and Consumer Business (₹64,875 mn, +19.2% YoY) emerged as the fastest-growing verticals, offsetting slower growth in BFSI and TMC.

Bottomline

Q4FY26 PAT of ₹13,873 mn grew 22.9% YoY (vs ₹11,286 mn), with the sequential jump from ₹9,596 mn in Q3FY26 distorted by Q3’s exceptional Labour Code charge of ₹5,903 mn; underlying PAT progression is cleaner on EBIT.
FY26 PAT of ₹49,827 mn grew 8.3% YoY (vs ₹46,020 mn), a deceleration from topline growth — driven by a 6.8% rise in employee costs and a 22.9% spike in other expenses compressing flow-through.
Diluted EPS expanded from ₹155.00 in FY25 to ₹169.13 in FY26 (+9.1% YoY), providing modest but consistent earnings-per-share accretion on a stable share count.

Margins

Q4FY26 EBIT margin (segment EBIT ÷ revenue): ₹19,730 ÷ ₹1,12,917 = 17.5%, up from 16.3% in Q4FY25 (₹15,962 ÷ ₹97,717) — a meaningful 120 bps YoY recovery.
FY26 EBIT margin: ₹75,552 ÷ ₹4,23,076 = 17.9%, broadly flat vs FY25 at 17.1% (₹64,949 ÷ ₹3,80,081) — sub-contracting costs (+22.9% YoY to ₹32,369 mn) and other expenses (+22.8% YoY to ₹52,286 mn) remain structural headwinds.
Net profit margin for FY26: ₹49,827 ÷ ₹4,23,076 = 11.8%, down from 12.1% in FY25 — cost inflation is outpacing operating leverage, limiting margin expansion.

Growth Trajectory

Sequential revenue acceleration (Q2→Q3→Q4 FY26) confirms demand recovery is broadening across verticals — not concentrated in a single segment.
BFSI, the largest segment (35.2% of FY26 revenue), grew only 8.5% YoY — a relative drag; recovery here is essential for the next leg of overall growth.
Healthcare & Public Services grew 14.9% YoY in revenue but delivered flat EBIT (₹3,303 mn vs ₹3,362 mn in FY25) — scale yet to translate into profitability.

INFY – Infosys Ltd – Q4 FY26 Financial Results – 23-Apr-26

Infosys’ FY26 shows revenue acceleration, 10.2% PAT growth (15%+ ex‑exceptional), and strong FCF funding ₹36,711 Cr returns. FY27 hinges on receivable build, margin pressure in Energy/Life Sciences, and OCF conversion amid large deal ramp‑ups. Re‑rating depends on Hi‑Tech/Life Sciences inflection and DSO normalization.

1–2 minutes

🔍 Observations

Topline

Q4FY26 revenue at ₹46,402 Cr grew 13.4% YoY (vs ₹40,925 Cr) and 2.0% QoQ — strongest quarterly print in recent history, validating demand recovery across verticals.
FY26 full-year revenue reached ₹1,78,650 Cr, up 9.6% YoY (vs ₹1,62,990 Cr) — re-acceleration after a subdued FY25, signalling durable deal ramp-up.
Financial Services (₹49,908 Cr, +10.5% YoY) and Manufacturing (₹29,078 Cr, +15.4% YoY) led segment growth; Communication added ₹2,657 Cr YoY (+13.9%), emerging as a high-momentum vertical.

Bottomline

Q4FY26 PAT at ₹8,509 Cr grew 20.9% YoY (vs ₹7,038 Cr) — sharpest quarterly earnings jump in the dataset, driven by operating leverage and lower effective tax.
FY26 PAT at ₹29,474 Cr rose 10.2% YoY (vs ₹26,750 Cr); excluding Q3FY26 Labour Code exceptional charge of ₹1,289 Cr, normalised PAT growth is closer to 15%.
Basic EPS expanded to ₹71.58 for FY26 vs ₹64.50 in FY25 (+11.0% YoY), further boosted by buyback-driven share count reduction.

Margins

Q4FY26 EBIT margin (segment profit before unallocables): Total segment profit ₹11,167 Cr on revenue ₹46,402 Cr = 24.1%, up from 24.1% in Q4FY25 — stable despite wage pressures.
FY26 PBT margin: ₹39,995 Cr on total income ₹1,82,972 Cr = 21.9% vs ₹37,608/₹1,66,590 = 22.6% in FY25 — marginal compression partly due to the Labour Code charge; on a pre-exceptional basis, PBT of ₹41,284 Cr = 22.6%, flat YoY.
Employee cost as % of revenue: FY26 = 53.2% (₹95,094/₹1,78,650) vs FY25 = 52.7% — modest creep, offset by sub-contractor optimisation (cost of technical sub-contractors as % of revenue held at 8.6%).

Growth Trajectory

Revenue CAGR implied over FY25→FY26 at 9.6% marks an acceleration vs prior muted cycles; Q4 exit rate of ₹46,402 Cr annualises to ~₹1,85,608 Cr, implying ~3.9% organic growth runway into FY27.
FY26 EPS growth of 11.0% outpaced revenue growth of 9.6% — confirms operating leverage is intact and capital return (buyback) is accretive to per-share metrics.
Hi-Tech segment (₹13,928 Cr, +6.4% YoY) and Life Sciences (₹12,267 Cr, +3.7% YoY) remain structural laggards; recovery here would expand the growth ceiling meaningfully.

TRENT – Westside, Zudio, Star – Q4 FY26 Financial Results – 22-Apr-26

Trent’s capex‑driven expansion is scaling revenue/EBITDA with positive FCF and intact gross margins. PAT softness (8.57% vs 8.96%) stems from accelerated D&A, not erosion. Risks lie in lease obligations and normalized non‑operating income, constraining EPS flow‑through. Long‑term signals: same‑store sales and EBITDA‑to‑FCF conversion.

1–2 minutes

🔍 Observations

Topline

Revenue grew 17.2% YoY (₹17,134.61 Cr → ₹20,074.21 Cr) in FY26, with Q4FY26 accelerating to 19.2% YoY (₹4,216.94 Cr → ₹5,027.99 Cr) — sustained double-digit volume-led growth rather than price-driven optionality.
Q4FY26 revenue fell 5.9% QoQ (₹5,345.06 Cr → ₹5,027.99 Cr), reflecting the structural seasonality of Q3 being the festive/peak quarter for fashion retail.
Gross margin held firm at 43.9% (FY26) vs 43.5% (FY25) — input cost discipline intact despite inflationary pressures on merchandise.

Bottomline

FY26 PAT grew 12.2% YoY (₹1,534.41 Cr → ₹1,721.33 Cr); growth lagged revenue due to a 52.1% surge in D&A (₹895.18 Cr → ₹1,361.19 Cr) from aggressive store rollouts.
Q4FY26 PAT jumped 32.6% YoY (₹311.60 Cr → ₹413.10 Cr), demonstrating strong operating leverage even in a seasonally softer quarter.
Associate income collapsed from ₹86.50 Cr (FY25) to ₹3.90 Cr (FY26), and other income halved (₹218.56 Cr → ₹114.84 Cr) — both suppressed PAT relative to underlying operating performance.

Margins

EBITDA margin expanded 146 bps YoY to 18.03% (EBITDA: ₹3,619.88 Cr vs ₹2,838.42 Cr), with Q4FY26 hitting 18.13% vs 16.33% — indicates operating leverage kicking in at scale.
EBIT margin was nearly flat at 11.25% (FY26) vs 11.34% (FY25), as D&A intensity rose from 5.2% to 6.8% of revenue — expansion capex creating a transient margin drag.
Net profit margin compressed to 8.57% from 8.96% — entirely attributable to the non-cash D&A step-up and income line normalisation, not core business deterioration.

Growth Trajectory

Revenue CAGR trajectory is consistent and accelerating at the Q4 level, confirming store count expansion is translating into durable top-line scaling.
EPS grew 11.2% YoY (₹43.51 → ₹48.37); below PAT growth rate of 12.2%, but consistent given stable share count — no dilution drag.
Total assets grew 24.5% YoY (₹9,419.64 Cr → ₹11,728.58 Cr), with PPE up 62.7% — capital-intensive expansion phase is underway and priced into near-term margins.

TECHM – Tech Mahindra – Q4 FY26 Financial Results – 22-Apr-26

Tech Mahindra’s FY26 shows 120 bps EBITDA margin expansion and 13% PAT growth, with Q4 cleanly strongest. Yet ₹12,210 Mn working capital drag and 83.8% payout strain buffers. FY27 durability hinges on DSO and OCF conversion quality sustaining the earnings recovery.

1–2 minutes

🔍 Observations

Topline

Revenue from operations hit ₹150,761 Mn in Q4FY26, up 12.6% YoY (vs ₹133,840 Mn in Q4FY25) and 4.7% QoQ — the strongest quarterly print in the disclosed period, signalling demand recovery is gaining traction.
IT segment drove ₹126,608 Mn (84% of Q4FY26 revenue); BPS contributed ₹24,153 Mn (16%) — both segments accelerated sequentially.
Full-year FY26 revenue of ₹568,154 Mn grew 7.2% YoY (vs ₹529,883 Mn in FY25), confirming a steady re-acceleration after prior-year softness.

Bottomline

Q4FY26 PAT of ₹13,564 Mn surged 18.8% YoY (vs ₹11,419 Mn) and 21.3% QoQ (vs ₹11,186 Mn) — the cleanest quarter in the set, with no exceptional items distorting the read.
FY26 PAT of ₹48,055 Mn grew 13.0% YoY (vs ₹42,530 Mn), with owner-attributable profit at ₹48,109 Mn, tightly aligned — minority drag is negligible.
Q3FY26 PAT was suppressed by a ₹2,724 Mn exceptional item; ex-exceptional, Q3 PBT would have been ₹17,775 Mn vs reported ₹15,051 Mn — Q4 momentum is therefore organic.

Margins

Q4FY26 EBITDA (PBT + Tax + Finance Costs + D&A): ₹17,906 + ₹4,342 + ₹888 + ₹4,811 = ₹27,947 Mn on revenue of ₹150,761 Mn → EBITDA margin of 18.5%, up from 14.5% in Q4FY25 (EBITDA ₹19,349 Mn / ₹133,840 Mn).
FY26 EBITDA: ₹65,731 + ₹17,676 + ₹3,374 + ₹18,816 = ₹105,597 Mn on ₹568,154 Mn revenue → 18.6% EBITDA margin, vs FY25 EBITDA of ₹92,280 Mn / ₹529,883 Mn = 17.4% — 120 bps annual expansion.
FY26 net margin: ₹48,055 / ₹568,154 = 8.5% vs FY25 ₹42,530 / ₹529,883 = 8.0% — 50 bps improvement; employee costs as % of revenue fell from 55.9% to 53.6%, the primary lever.

Growth Trajectory

Segment results grew faster than revenue: Total segment results up 16.4% YoY in FY26 (₹110,158 Mn vs ₹94,632 Mn), implying operating leverage is kicking in.
BPS segment results grew 25.7% YoY in FY26 (₹14,990 Mn vs ₹11,923 Mn) — disproportionate profit contribution from a smaller revenue base signals mix improvement.
Basic EPS expanded from ₹48.00 in FY25 to ₹54.28 in FY26, a 13.1% YoY gain — earnings quality is clean, with dilution from stock options minimal (diluted EPS ₹54.19).

NESTLEIND – Nestlé India – Q4 FY26 Financial Results – 21-Apr-26

Nestlé India’s FY26 shows revenue, FCF, and balance sheet strength, but 70 bps EBITDA compression despite 14.6% growth highlights cost inflation and associate drag. With capex cycle over, it’s a high‑FCF compounder; risk lies in valuation if margin trough proves structural, not seasonal.

1–2 minutes

🔍 Observations

Topline

Q4FY26 Revenue from Operations hit ₹6,748 Cr, up 22.6% QoQ (vs ₹5,667 Cr in Q3FY26) and 22.6% YoY (vs ₹5,504 Cr in Q4FY25) — a strong seasonal quarter driven by domestic volume.
FY26 full-year revenue reached ₹23,155 Cr vs ₹20,202 Cr in FY25, a 14.6% YoY gain. Domestic sales drove the bulk: ₹22,119 Cr vs ₹19,293 Cr (+14.6% YoY).
Export revenue grew 21.4% YoY (₹953 Cr vs ₹785 Cr), contributing ~4.1% of product sales — a minor but improving diversification lever.

Bottomline

Q4FY26 PAT of ₹1,111 Cr grew 27.3% YoY (vs ₹873 Cr in Q4FY25), the strongest quarterly print of FY26.
FY26 PAT of ₹3,499 Cr rose 9.1% YoY (vs ₹3,208 Cr in FY25), despite an associate loss drag of ₹46 Cr vs ₹24 Cr in FY25.
FY26 basic EPS of ₹18.15 vs ₹16.63 in FY25 (+9.1% YoY) — adjusted for the 1:1 bonus share issue in FY26 (share capital doubled from ₹96 Cr to ₹193 Cr).

Margins

Q4FY26 EBITDA margin: ₹1,772 Cr ÷ ₹6,748 Cr = 26.3%, a sharp recovery from Q3FY26’s 21.2% (₹1,201 Cr ÷ ₹5,667 Cr) and above Q4FY25’s 25.2% (₹1,388 Cr ÷ ₹5,504 Cr).
FY26 EBITDA margin: ₹5,306 Cr ÷ ₹23,155 Cr = 22.9% vs FY25’s 23.6% (₹4,770 Cr ÷ ₹20,202 Cr) — a 70 bps compression, driven by material cost inflation and higher D&A.
FY26 PAT margin: ₹3,499 Cr ÷ ₹23,155 Cr = 15.1% vs FY25’s 15.9% — mild compression despite revenue scale-up, reflecting cost headwinds.

Growth Trajectory

Revenue CAGR of 14.6% in FY26 is healthy for a mature FMCG franchise, but EBITDA grew only 11.3% (₹5,306 Cr vs ₹4,770 Cr) — volume leverage not yet converting to margin expansion.
D&A jumped 29.5% YoY (₹699 Cr vs ₹540 Cr), signalling accelerated capex capitalisation; CWIP fell sharply from ₹1,173 Cr to ₹507 Cr, confirming assets going live.
Q3FY26 EBITDA margin of 21.2% was a notable trough; the Q4 rebound to 26.3% suggests seasonality and cost absorption, not a structural fix.

TATAELXSI – Tata Elxsi – Q4 FY26 Financial Results – 21-Apr-26

Tata Elxsi’s FY26 saw flat revenue and ~440 bps margin hit from cost inflation, with ~10% earnings decline in core verticals. Q4 rebound offers hope, but FY27 hinges on sustained topline recovery. Debt‑free, cash‑rich balance sheet limits downside, yet premium valuation demands earnings revival.

1–2 minutes

🔍 Observations

Topline

Revenue from operations grew a modest 0.76% YoY in FY26 (₹3,729 Cr → ₹3,757 Cr), signalling demand-side stagnation despite sequential recovery in Q4.
Q4FY26 revenue of ₹993.75 Cr grew 9.4% YoY and 4.2% QoQ — the strongest sequential print of the year, suggesting early-stage re-acceleration.
Other income remained a meaningful contributor at ₹184 Cr (FY26), reflecting treasury yield on the large cash/deposit base.

Bottomline

Reported PAT collapsed 20% YoY (₹784.94 Cr → ₹628.43 Cr) in FY26, heavily distorted by a ₹95.69 Cr exceptional item in Q3FY26.
Excluding the exceptional, pre-tax profit still declined ~10.4% YoY (₹1,028 Cr → ₹920.8 Cr), indicating genuine margin pressure independent of one-offs.
Q4FY26 PAT of ₹220.35 Cr grew 27.8% YoY and 102% QoQ — a strong recovery print that partially restores confidence.

Margins

EBITDA margin (pre-exceptional, ex-other income) compressed sharply: operating costs grew 4.9% while revenue was nearly flat, squeezing core profitability.
Employee costs as a percentage of revenue climbed to 58.1% in FY26 vs. 54.9% in FY25 — the primary margin headwind and key variable to watch.
Net profit margin contracted to 16.7% in FY26 from 21.1% in FY25 (on operating revenue basis), a ~440 bps deterioration.

Growth Trajectory

FY26 was a consolidation year: near-zero topline growth with double-digit cost inflation — a structurally concerning combination for a premium-valued IT services name.
Q4FY26 trajectory (revenue, PAT both inflecting upward YoY) offers a plausible base for FY27 recovery, contingent on demand visibility improving.
EPS fell from ₹126 to ₹100.89 YoY, eroding the earnings yield that justifies Tata Elxsi’s historically high PE multiples.