Operating profit recovered, but a Rs 702.52 cr other-income hit drove a loss
Standalone operating margin improved sequentially, though it remained below last year's level as expenses grew faster than revenue on a YoY basis.
Filed 13 May 2026, 16:18 IST · after market close · Crompton Greaves Consumer Electricals Ltd (CROMPTON)
Key takeaways
- Standalone net profit swung to a Rs 536.81 cr loss after negative other income of Rs 702.52 cr.
- Revenue grew 10.90% YoY, but expenses rose 12.09%, narrowing operating margin by 0.93 percentage points.
- Operating margin recovered 1.66 percentage points QoQ to 12.15% as revenue growth outpaced expense growth.
Price around the results
Negative other income overwhelmed standalone operating profit
Standalone operating profit rose 2.98% YoY, but the Rs 702.52 cr negative other-income line pushed profit before tax to a Rs 485.38 cr loss. Other income represented 144.74% of reported pre-tax profit on the company's calculation, making reported net profit a poor indicator of operating performance this quarter. The company also recorded Rs 51.43 cr of tax expense despite the pre-tax loss.
Costs diluted the YoY margin despite sequential improvement
Expenses grew 12.09% YoY against 10.90% revenue growth, which reduced operating margin by 0.93 percentage points to 12.15%. Sequentially, revenue rose 25.54% while expenses increased 23.22%, allowing operating margin to expand 1.66 percentage points and operating profit to grow 45.29%. Interest increased 13.03% QoQ, but depreciation rose only 2.72%.
Margin has recovered for two quarters but still trails peers
Operating margin improved from 7.97% in Q2FY26 to 10.49% in Q3FY26 and 12.15% in Q4FY26, reversing the decline seen after Q4FY25's 13.08%. It remained 2.81 percentage points below the 14.96% median for the 94 Consumer Discretionary peers that had reported the quarter. The sequential recovery therefore has not yet restored the margin to its year-ago level.
Fans, pumps and SDA led the company's reported growth areas
Management said fans reached their highest-ever volumes in March 2026, supported by BLDC growth, while pumps delivered double-digit growth across residential, agricultural and solar applications. The company said SDA also recorded strong double-digit growth, with air fryers and induction cooktops growing multifold. Management said it was commencing a phased city-wise retail rollout for solar rooftops across select cities from April 2026 and was continuing existing project execution.
The initial stock reaction was modest before a larger second-day move
The results were filed after market close, and the stock gained 1.46% on the first reported reaction day, with volume at 2.04 times its reference level. That initial move was below the stock's 3.56% median absolute move after its last eight results, when it rose six times and fell twice. The gain reached 6.02% by the next session and was 2.48% after five sessions, before turning negative at 15 sessions.
Q4FY26 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹2,083 cr | ₹1,659 cr | +25.54% | +10.90% |
| Other income | ₹-703 cr | ₹-8 cr | -9204.90% | — |
| Expenses | ₹1,830 cr | ₹1,485 cr | +23.22% | +12.09% |
| Operating profit | ₹253 cr | ₹174 cr | +45.29% | +2.98% |
| Operating margin (%) | 12.15% | 10.49% | — | — |
| Interest | ₹9 cr | ₹8 cr | +13.03% | +1.56% |
| Depreciation | ₹27 cr | ₹26 cr | +2.72% | +17.30% |
| Profit before tax | ₹-485 cr | ₹132 cr | — | — |
| Tax | ₹51 cr | ₹34 cr | +50.29% | -12.73% |
| Net profit | ₹-537 cr | ₹98 cr | — | — |
| EPS (₹) | ₹-8.34 | ₹1.53 | — | — |
Operating margin of 12.15% 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 | +1.46% | +0.27% |
| Next session | +6.02% | — |
| 5 sessions | +2.48% | +1.44% |
| 15 sessions | -6.39% | — |
| 30 sessions | -3.97% | — |
Volume on the results session was 2.04× 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
- Fans delivered their highest-ever volumes in March 2026, supported by strong BLDC growth.
- The pumps segment recorded double-digit growth driven by residential, agricultural and solar pumps.
- SDA recorded strong double-digit growth, with air fryers and induction cooktops growing multifold.
Guidance & outlook
- The company aims to build a future-ready go-to-market model to accelerate its multi-category portfolio across all channels.
Expansion
- The company is commencing a phased city-wise retail rollout for solar rooftops across select cities from April 2026.
- The company continued executing existing solar rooftop projects.
New products
- The company launched the New V4 Magna Series in agricultural pumps.
New initiatives
- The company has embarked on a go-to-market transformation journey guided by a BCG strategic study.
Competition
- The pumps business gained market share across categories.
- Water heaters remained an All-India Top 3 brand in general trade.
Problems & risks
- Persistent input-cost pressures required calibrated price hikes across key categories.
What to watch
- Whether standalone operating margin holds above 12.15% after the sequential recovery.
- Whether expenses continue to grow slower than revenue, reversing the YoY gap of 12.09% versus 10.90%.
- The reported progress of the phased solar-rooftop retail rollout announced for April 2026.