Gallantt Ispat Q1 profit falls -28.84% as costs outrun revenue
Revenue grew +1.59% YoY while expenses climbed +9.04%; operating margin nevertheless improved 0.86 percentage points sequentially.
Filed 27 Jul 2026, 18:36 IST · after market close · Gallantt Ispat Ltd. (GALLANTT)
Key takeaways
- Revenue grew only +1.59% YoY while expenses rose +9.04%, narrowing operating margin by 5.73 percentage points to 16.16%.
- Net profit declined -28.84% YoY as the tax rate rose 5.29 percentage points and interest costs increased +49.91%.
- Sequentially, operating margin improved 0.86 percentage points as expenses fell faster than revenue and interest costs declined -38.27%.
Price around the results
Revenue growth lagged the cost base
Gallantt Ispat’s consolidated revenue rose only +1.59% YoY, while expenses increased +9.04%. That cost-revenue gap reduced operating profit by -25.02% and cut operating margin by 5.73 percentage points to 16.16%. The result was a -28.84% YoY decline in net profit despite broadly flat revenue.
Sequential margin recovery continued
Compared with Q4FY26, revenue fell -4.91% but expenses fell faster at -5.87%, lifting operating margin by 0.86 percentage points. Margin has risen each quarter since Q2FY26, although the current 16.16% remains 5.73 percentage points below Q1FY26. Gallantt Ispat was 1.07 percentage points above the 15.09% median operating margin of 16 Industrials peers that had reported.
Tax and other income affected profit quality
The tax rate increased 5.29 percentage points YoY to 24.97%, adding to the pressure on net profit. Other income accounted for 11.11% of pre-tax profit, so reported earnings were not entirely driven by operations. Sequentially, interest costs declined -38.27%, helping pre-tax profit rise +1.98% even as revenue contracted.
Market reaction is still pending
The consolidated results were filed after market close, so there is no immediate market reaction to assess. Across the stock’s last eight result reactions, it rose five times and fell three times, with a median absolute move of 3.84%.
Q1FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,146 cr | ₹1,205 cr | -4.91% | +1.59% |
| Other income | ₹18 cr | ₹25 cr | -25.33% | +168.48% |
| Expenses | ₹961 cr | ₹1,020 cr | -5.87% | +9.04% |
| Operating profit | ₹185 cr | ₹184 cr | +0.38% | -25.02% |
| Operating margin (%) | 16.16% | 15.30% | — | — |
| Interest | ₹8 cr | ₹14 cr | -38.27% | +49.91% |
| Depreciation | ₹30 cr | ₹34 cr | -10.33% | -4.87% |
| Profit before tax | ₹165 cr | ₹162 cr | +1.98% | -23.83% |
| Tax | ₹41 cr | ₹39 cr | +6.11% | -3.36% |
| Net profit | ₹124 cr | ₹123 cr | +0.68% | -28.84% |
| EPS (₹) | ₹5.13 | ₹5.09 | +0.79% | -28.75% |
Operating margin of 16.16% compares with a Industrials sector median of 15.09% across 16 peers that have reported Q1FY27.
What to watch
- Whether operating margin holds above 16.16%.
- Whether YoY expense growth moderates from +9.04%.
- Whether the tax rate moves below 24.97% while interest costs remain lower than the Q4FY26 base.