CONCOR margin drops 3.39 points as costs rise despite weaker revenue
Consolidated net profit fell -11.84% YoY, with lower other income and higher interest adding to the operating squeeze.
Filed 25 May 2026, 19:32 IST · after market close · Container Corporation Of India Ltd (CONCOR)
Key takeaways
- Consolidated Q4FY26 net profit change was -11.84% YoY as other income fell -33.40% and interest rose +22.90%.
- Operating margin narrowed 3.39 percentage points QoQ to 18.89% as revenue fell -1.92% while expenses rose +2.36%.
- The stock fell -7.06% on the first reaction, well beyond its 2.31% median absolute move after the last eight results.
Price around the results
Profit fell faster than revenue in Q4FY26
Consolidated revenue declined -1.07% YoY to Rs 2,263.3 cr, while expenses fell only -0.62%, so operating profit declined -2.97% to Rs 427.48 cr. Net profit fell more sharply, with the decline in other income and a +22.90% increase in interest adding to the operating pressure. The lower tax rate, at 23.83% versus 25.80% a year earlier, partly cushioned the reported profit decline.
Sequential margin decline accelerates
QoQ revenue fell -1.92% while expenses rose +2.36%, driving a 3.39 percentage-point contraction in operating margin. Margin has now declined for two consecutive quarters, from 24.45% in Q2FY26 to 22.28% in Q3FY26 and 18.89% in Q4FY26. This was the sixth-lowest operating margin among 12 Services-sector peers that had reported, trailing the peer median of 31.15% by 12.26 percentage points.
Other income remained material to reported profit
Other income accounted for 26.90% of pre-tax profit, making the earnings mix less dependent on operations than the headline net profit suggests. It declined -33.40% YoY and -5.99% QoQ, while interest rose +22.90% YoY and +5.19% QoQ. The tax rate was broadly stable sequentially, increasing by 0.12 percentage points.
Market reaction was unusually negative for CONCOR
The stock fell -7.06% on the first trading reaction and was down -11.75% after five sessions. That was substantially weaker than the 2.31% median absolute move across the last eight result reactions, which were evenly split between four rises and four falls.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹2,263 cr | ₹2,308 cr | -1.92% | -1.07% |
| Other income | ₹93 cr | ₹99 cr | -5.99% | -33.40% |
| Expenses | ₹1,836 cr | ₹1,793 cr | +2.36% | -0.62% |
| Operating profit | ₹427 cr | ₹514 cr | -16.84% | -2.97% |
| Operating margin (%) | 18.89% | 22.28% | — | — |
| Interest | ₹21 cr | ₹20 cr | +5.19% | +22.90% |
| Depreciation | ₹153 cr | ₹154 cr | -0.26% | -4.31% |
| Profit before tax | ₹346 cr | ₹439 cr | -21.22% | -14.12% |
| Tax | ₹82 cr | ₹104 cr | -20.83% | -20.67% |
| Net profit | ₹264 cr | ₹335 cr | -21.34% | -11.84% |
| EPS (₹) | ₹3.46 | ₹4.40 | -21.36% | -29.53% |
Operating margin of 18.89% compares with a Services sector median of 31.15% across 12 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -7.06% | -6.57% |
| Next session | -7.76% | — |
| 5 sessions | -11.75% | -9.14% |
| 15 sessions | -8.80% | — |
| 30 sessions | -10.73% | — |
Volume on the results session was 7.20× its 20-day average.
What to watch
- Whether operating margin recovers from 18.89% after two consecutive quarterly declines.
- Whether expenses stop growing faster than revenue after the QoQ gap of +2.36% versus -1.92%.
- Whether other income remains close to 26.90% of pre-tax profit.