ABREL margin stabilises, but revenue falls 39.50% year on year
Costs were flat despite the revenue decline, while tax credits and other income drove the sharp increase in reported net profit.
Filed 06 May 2026, 13:34 IST · Aditya Birla Real Estate Ltd (ABREL)
Key takeaways
- Standalone operating margin was broadly stable sequentially at 37.99%, up 0.04 percentage points from Q3FY26.
- Revenue growth was -39.50% year on year while expenses grew +0.31%, reducing operating margin by 24.61 percentage points.
- Net profit was materially influenced by a -129.70% tax rate and other income equal to 219.72% of profit before tax.
Price around the results
Revenue contraction leaves operating profit 63.28% lower
Aditya Birla Real Estate reported standalone revenue growth of -39.50% year on year, while operating profit growth was -63.28%. Sequentially, revenue was nearly unchanged at -0.36% growth and operating profit declined -0.25%, indicating that the main weakness was the year-on-year comparison rather than a fresh quarterly deterioration.
Costs and interest explain the year-on-year margin squeeze
Expenses grew +0.31% year on year even as revenue growth was -39.50%, so operating margin narrowed by 24.61 percentage points. Interest expense also rose +10.26%, adding to the pressure below operating profit. Sequentially, expenses declined -0.43% against a -0.36% revenue change, allowing margin to edge up 0.04 percentage points.
Margin decline has paused after three quarters of compression
Operating margin fell from 57.32% in Q1FY26 to 41.88% in Q2FY26 and 37.95% in Q3FY26, before holding at 37.99% in Q4FY26. It remains well above the 14.96% median for the 94 Consumer Discretionary peers that had reported, a gap of 23.03 percentage points. Reported profit quality was weak: other income represented 219.72% of profit before tax, while the -129.70% tax rate further lifted net profit.
The initial stock rise was ordinary, then reversed
The stock rose +4.54% on the results day, below the 5.55% median absolute move across its eight previous result reactions; six of those reactions were positive and two were negative. It gained +7.34% on the following day but was down -12.06% by day five and -10.98% by day 30, showing that the initial response did not persist.
Q4FY26 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹63 cr | ₹63 cr | -0.36% | -39.50% |
| Other income | ₹62 cr | ₹46 cr | +35.68% | — |
| Expenses | ₹39 cr | ₹39 cr | -0.43% | +0.31% |
| Operating profit | ₹24 cr | ₹24 cr | -0.25% | -63.28% |
| Operating margin (%) | 37.99% | 37.95% | — | — |
| Interest | ₹45 cr | ₹44 cr | +1.04% | +10.26% |
| Depreciation | ₹13 cr | ₹13 cr | -0.07% | -0.07% |
| Profit before tax | ₹28 cr | ₹12 cr | +127.16% | — |
| Tax | ₹-37 cr | ₹0 cr | — | -170.17% |
| Net profit | ₹181 cr | ₹44 cr | +310.49% | — |
| EPS (₹) | ₹16.35 | ₹3.99 | +309.77% | — |
Operating margin of 37.99% compares with a Consumer Discretionary sector median of 14.96% across 94 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +4.54% | +3.30% |
| Next session | +7.34% | — |
| 5 sessions | -12.06% | -9.48% |
| 15 sessions | -15.49% | — |
| 30 sessions | -10.98% | — |
Volume on the results session was 1.27× its 20-day average.
What to watch
- Whether operating margin holds above 37.99% after the Q4FY26 stabilisation.
- Whether revenue growth improves from -39.50% year on year.
- Whether other income's 219.72% share of profit before tax and the -129.70% tax rate normalise.