Belrise margin slips as costs outpace revenue in Q4FY26
Standalone net profit grew 23.55% year on year, helped by lower interest costs, while the stock fell 2.64% after the results.
Filed 24 May 2026, 23:44 IST · after market close · Belrise Industries Ltd (BELRISE)
Key takeaways
- Standalone revenue grew 17.11% year on year, but expenses grew faster at 18.23%, narrowing operating margin by 0.82 percentage points to 13.32%.
- Net profit rose 23.55% year on year as interest costs fell 23.29%, although the tax rate increased by 3.21 percentage points and other income contributed 11.34% of pre-tax profit.
- The stock fell 2.64% on the first trading day after results, a slightly larger move than its 2.34% median absolute reaction across the last four result periods.
Price around the results
Revenue accelerated, but operating profit lagged
Belrise's standalone revenue grew 17.11% year on year and 15.68% sequentially, but operating profit increased only 10.33% and 9.29%, respectively. The gap reflects costs growing faster than revenue in both comparisons, limiting the conversion of sales growth into operating profit. Net profit growth was better than operating profit growth because interest expense fell 23.29% year on year.
Cost growth pushed margin lower for a second quarter
Operating margin declined 0.82 percentage points year on year and 0.78 percentage points sequentially as expenses grew 18.23% year on year and 16.73% sequentially, ahead of revenue growth. The margin has now fallen from 14.41% in Q2FY26 to 14.10% in Q3FY26 and 13.32% in Q4FY26, marking two consecutive quarterly declines. Other income accounted for 11.34% of pre-tax profit, while the year-on-year tax-rate increase of 3.21 percentage points partly restrained net-profit conversion.
Margin remains below the reported peer median
Belrise's 13.32% operating margin was 1.64 percentage points below the 14.96% median for 94 reported Consumer Discretionary peers. This places the quarter below the sector comparison even as revenue growth remained positive. The sequential margin decline also leaves the company below its Q2FY26 level of 14.41%.
Initial market reaction was slightly weaker than usual
The stock declined 2.64% on the first trading day after the filing, with a 0.16% opening gap lower and volume at 3.75 times the reference level. Across the last four result reactions, the stock rose twice and fell twice, with a median absolute move of 2.34%, making this decline slightly larger than its typical reaction. It was up 0.71% after five trading days and 9.74% after 15 trading days.
Q4FY26 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹2,107 cr | ₹1,821 cr | +15.68% | +17.11% |
| Other income | ₹20 cr | ₹27 cr | -23.37% | +66.26% |
| Expenses | ₹1,826 cr | ₹1,565 cr | +16.73% | +18.23% |
| Operating profit | ₹281 cr | ₹257 cr | +9.29% | +10.33% |
| Operating margin (%) | 13.32% | 14.10% | — | — |
| Interest | ₹34 cr | ₹31 cr | +9.81% | -23.29% |
| Depreciation | ₹87 cr | ₹89 cr | -1.60% | +5.51% |
| Profit before tax | ₹180 cr | ₹164 cr | +9.77% | +28.77% |
| Tax | ₹44 cr | ₹47 cr | -7.44% | +48.47% |
| Net profit | ₹136 cr | ₹117 cr | +16.71% | +23.55% |
| EPS (₹) | ₹1.60 | ₹1.39 | +15.11% | -5.33% |
Operating margin of 13.32% 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 | -2.64% | -3.96% |
| Next session | +0.43% | — |
| 5 sessions | +0.71% | +1.70% |
| 15 sessions | +9.74% | — |
| 30 sessions | +4.34% | — |
Volume on the results session was 3.75× its 20-day average.
What to watch
- Whether operating margin recovers from 13.32% after two consecutive quarterly declines.
- Whether expense growth falls below the 18.23% year-on-year pace recorded in Q4FY26.
- Whether other income remains near 11.34% of pre-tax profit.