Cemindia's Q4 margin jumps to 12.03% as revenue growth outpaces costs
Consolidated revenue grew 19.91% year on year, while contracts worth Rs 5,144 cr secured in the quarter add to management's orderbook visibility.
Filed 29 Apr 2026, 21:09 IST · after market close · Cemindia Projects Ltd (CEMPRO)
Key takeaways
- Cemindia's consolidated operating margin rose 1.57 percentage points year on year to 12.03% as expenses grew slower than revenue.
- Net profit more than doubled year on year to Rs 242.17 cr, but other income contributed 26.35% of profit before tax and the tax rate rose 4.15 percentage points.
- The stock gained 20.00% on the reaction day, far above its 4.28% median move after the past eight results, though a corporate action overlapped.
Price around the results
Q4 revenue growth translated into faster operating-profit growth
Cemindia's consolidated revenue rose 19.91% year on year, while expenses increased 17.81%, allowing operating profit to grow 37.89%. Sequentially, revenue grew 28.42% and expenses 24.94%, lifting operating margin by 2.45 percentage points. The margin improvement was therefore driven by revenue growing faster than costs in both comparisons.
Other income supported profit as the tax rate moved higher
Other income accounted for 26.35% of profit before tax, making the reported profit growth less dependent on operations alone. The tax rate increased to 30.86%, up 4.15 percentage points year on year and 3.76 percentage points sequentially, which limited the conversion of pre-tax gains into net profit. Interest expense was nearly flat year on year but rose 21.89% sequentially.
Margin recovered across three quarters but remains below the sector median
After reaching 9.16% in Q1FY26, operating margin improved in each of the next three quarters to 12.03% in Q4FY26. The margin was still 3.63 percentage points below the 15.66% median for 71 Industrials peers that had reported the quarter, placing Cemindia 21st from the bottom. Management said a diversified orderbook provides medium-term revenue visibility and that it secured Rs 5,144 cr of contracts in Q4FY26, including the Rs 3,098 cr Munger road project and the Rs 1,575 cr Mundra container terminal contract.
The results-day rally was unusual for Cemindia
The stock rose 20.00% on the reaction day and was up 40.78% by the next session. That compares with a 4.28% median absolute move after the past eight results, during which the stock rose twice and fell six times. A corporate action overlapped the reaction period, so the move does not represent a pure results response.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹2,973 cr | ₹2,315 cr | +28.42% | +19.91% |
| Other income | ₹92 cr | ₹23 cr | +299.13% | +981.83% |
| Expenses | ₹2,616 cr | ₹2,094 cr | +24.94% | +17.81% |
| Operating profit | ₹358 cr | ₹222 cr | +61.28% | +37.89% |
| Operating margin (%) | 12.03% | 9.58% | — | — |
| Interest | ₹61 cr | ₹50 cr | +21.89% | -0.99% |
| Depreciation | ₹39 cr | ₹43 cr | -9.39% | -23.95% |
| Profit before tax | ₹350 cr | ₹152 cr | +130.25% | +125.36% |
| Tax | ₹108 cr | ₹41 cr | +162.14% | +160.37% |
| Net profit | ₹242 cr | ₹111 cr | +118.39% | +112.60% |
| EPS (₹) | ₹14.10 | ₹6.45 | +118.60% | +113.31% |
Operating margin of 12.03% compares with a Industrials sector median of 15.66% across 71 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +20.00% | +20.74% |
| Next session | +40.78% | — |
| 5 sessions | +40.73% | +40.74% |
| 15 sessions | +26.99% | — |
| 30 sessions | +73.46% | — |
Volume on the results session was 51.25× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- The company secured contracts worth ₹5,144 crore in Q4 FY26.
Guidance & outlook
- The company says its diversified orderbook provides medium-term revenue visibility.
- The company says urbanization rising to 50% by 2047 will create opportunities for its metro tunnel, airport and highway expertise.
Expansion
- Cemindia is expanding its capabilities in data centers in response to AI and digital growth.
New orders
- The company secured a ₹3,098 crore road construction project at Munger, Bihar during the quarter.
- The company secured a ₹1,575 crore container terminal construction contract at Mundra, Gujarat during the quarter.
New initiatives
- The company says Adani Group synergies include shared resources, financial strength and vendor networks for better costs and margins.
- The company has an indigenous equipment fleet supporting large-scale complex projects.
What to watch
- Whether consolidated operating margin holds above 12.03%.
- Whether other income's 26.35% share of profit before tax declines.
- Whether the Rs 5,144 cr of Q4 contract wins begin translating into revenue growth.