Asahi India Glass expands margin by 4.50 points, shares gain 3.02%
Revenue growth outpaced expense growth in Q4FY26, while higher depreciation and interest limited the conversion of operating gains into profit.
Filed 27 May 2026, 13:57 IST · Asahi India Glass Ltd (ASAHIINDIA)
Key takeaways
- Consolidated operating margin expanded 4.50 percentage points YoY to 21.18% as revenue grew 14.77% while expenses rose 8.57%.
- Net profit increased 44.87% YoY to Rs 132.61 cr despite interest rising 27.60% and depreciation rising 54.05%.
- The stock gained 3.02% on results day, above its 1.94% median absolute move across the eight most recent result reactions.
Price around the results
Revenue growth lifted Q4 operating leverage
Consolidated revenue grew 14.77% YoY and 7.82% QoQ, while expenses rose at a slower 8.57% YoY and 6.17% QoQ. That gap lifted operating margin by 4.50 percentage points YoY and 1.23 percentage points QoQ. Operating profit consequently grew 45.71% YoY and 14.43% QoQ.
Higher depreciation and interest moderated profit conversion
Interest expense rose 27.60% YoY, while depreciation increased 54.05%, absorbing part of the operating-profit improvement. Net profit still grew 44.87% YoY and 33.32% QoQ. Other income contributed 5.31% of pre-tax profit, so it was not the main source of the earnings increase, and the YoY tax-rate change was limited to a 0.20 percentage-point decline.
Margin reached a new high in the reported five-quarter trend
Operating margin improved from 15.60% in Q3FY25 to 21.18% in Q4FY26, with the latest quarter marking a third consecutive quarterly increase from 16.35% in Q2FY26 and 19.95% in Q3FY26. Asahi India Glass was 6.37 percentage points above the 14.81% median operating margin of the 93 Consumer Discretionary peers that had reported the quarter.
The initial market move was larger than its usual result reaction
The stock rose 3.02% on the results date, with a 10.88-times volume ratio, and was up 3.05% relative to its benchmark. The move was above the stock's 1.94% median absolute reaction across eight recent results, although the return had turned to -3.40% by day 15.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,354 cr | ₹1,256 cr | +7.82% | +14.77% |
| Other income | ₹10 cr | ₹-2 cr | — | +7.20% |
| Expenses | ₹1,067 cr | ₹1,005 cr | +6.17% | +8.57% |
| Operating profit | ₹287 cr | ₹251 cr | +14.43% | +45.71% |
| Operating margin (%) | 21.18% | 19.95% | — | — |
| Interest | ₹42 cr | ₹43 cr | -3.26% | +27.60% |
| Depreciation | ₹75 cr | ₹73 cr | +2.62% | +54.05% |
| Profit before tax | ₹180 cr | ₹133 cr | +35.23% | +44.48% |
| Tax | ₹47 cr | ₹33 cr | +40.92% | +43.41% |
| Net profit | ₹133 cr | ₹99 cr | +33.32% | +44.87% |
| EPS (₹) | ₹5.20 | ₹3.90 | +33.33% | +36.84% |
Operating margin of 21.18% compares with a Consumer Discretionary sector median of 14.81% across 93 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +3.02% | +3.05% |
| Next session | +1.23% | — |
| 5 sessions | -0.02% | +2.06% |
| 15 sessions | -3.40% | — |
| 30 sessions | +2.61% | — |
Volume on the results session was 10.88× its 20-day average.
What to watch
- Whether consolidated operating margin holds above 21.18%.
- Whether interest expense remains below the Q4FY26 level after rising 27.60% YoY.
- Whether depreciation growth moderates from the Q4FY26 increase of 54.05% YoY.