CIE India's operating margin rebounds to 15.39% in Q4FY26
Revenue grew faster than expenses, while management cited Europe's post-restructuring margin recovery; the stock's initial 2.43% fall exceeded its usual move.
Filed 23 Apr 2026, 18:13 IST · after market close · CIE Automotive India Ltd (CIEINDIA)
Key takeaways
- Consolidated operating profit grew 19.81% YoY as revenue growth of 14.93% outpaced expense growth of 14.09%.
- Operating margin recovered 1.41 percentage points QoQ to 15.39%, reversing the Q3FY26 decline to 13.98%.
- The stock fell 2.43% on the first session after the results, a larger move than its 1.43% median post-results move.
Price around the results
Operating leverage returned in Q4FY26
On a consolidated basis, revenue growth accelerated to 9.15% QoQ and 14.93% YoY, while expenses rose more slowly at 7.36% and 14.09%, respectively. That cost discipline helped operating profit grow 20.14% QoQ and 19.81% YoY. The quarter therefore showed both sequential momentum and a cleaner year-on-year operating outcome.
Margin recovered after the Q3FY26 dip
Operating margin rose 1.41 percentage points QoQ and 0.63 percentage points YoY as costs grew slower than revenue. The 15.39% margin was 0.58 percentage points above the 14.81% median for the 93 Consumer Discretionary peers that had reported. This reversed the decline from 15.00% in Q2FY26 to 13.98% in Q3FY26. Other income contributed 8.97% of pre-tax profit, while the 0.22 percentage-point lower YoY tax rate provided a modest additional lift to net profit.
Management linked recovery to India and Europe
Management said India's business delivered positive growth in line with the market during Q1 CY2026. It also said Europe's margin recovered after restructuring undertaken in the previous year. The company told investors that European sales were in line with the market and benefited from a positive 17% exchange-rate impact.
Initial share-price reaction was unusually negative
The results were filed after market close, and the stock fell 2.43% on the first session, despite opening with a 4.57% gap. Trading volume was 9.7 times the reference level, and the stock had recovered to a 1.98% gain by day five. The initial decline was larger than the stock's 1.43% median absolute move after its past eight results, when four reactions were positive and four negative.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹2,612 cr | ₹2,393 cr | +9.15% | +14.93% |
| Other income | ₹29 cr | ₹25 cr | +18.64% | -19.69% |
| Expenses | ₹2,210 cr | ₹2,058 cr | +7.36% | +14.09% |
| Operating profit | ₹402 cr | ₹335 cr | +20.14% | +19.81% |
| Operating margin (%) | 15.39% | 13.98% | — | — |
| Interest | ₹9 cr | ₹9 cr | +5.88% | -27.32% |
| Depreciation | ₹94 cr | ₹96 cr | -1.23% | +9.14% |
| Profit before tax | ₹328 cr | ₹255 cr | +28.47% | +20.08% |
| Tax | ₹80 cr | ₹54 cr | +46.66% | +19.01% |
| Net profit | ₹249 cr | ₹204 cr | +22.05% | +20.82% |
| EPS (₹) | ₹6.57 | ₹5.38 | +22.12% | +20.77% |
Operating margin of 15.39% 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 | -2.43% | -1.29% |
| Next session | +3.24% | — |
| 5 sessions | +1.98% | +2.21% |
| 15 sessions | -3.00% | — |
| 30 sessions | -6.02% | — |
Volume on the results session was 9.70× 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
- India reported positive growth in line with the market during Q1 CY2026.
- Europe's margin recovered after restructuring activities undertaken in the previous year.
- Europe's sales were in line with the market and benefited from a positive 17% exchange-rate impact.
What to watch
- Whether operating margin stays at or above 15.39% after the Q4FY26 recovery.
- Whether expense growth remains below revenue growth, as in Q4FY26's 14.09% versus 14.93% YoY.
- Whether other income's 8.97% share of pre-tax profit narrows or persists.