Godrej Industries' margin recovery stalled as quarterly revenue fell 29.19%
Year-on-year margins improved, but higher interest and a 23.35% fall in other income pulled net profit down 27.85%.
Filed 13 Aug 2026, 13:25 IST · Godrej Industries Ltd (GODREJIND)
Key takeaways
- Consolidated revenue rose 22.16% year on year, while operating margin improved 1.65 percentage points to 10.55%.
- Sequentially, revenue fell 29.19% and costs fell only 25.33%, narrowing operating margin by 4.62 percentage points.
- Other income equalled 141.5% of pre-tax profit, making reported earnings quality heavily dependent on non-operating income.
Price around the results
Year-on-year operating recovery, sequential reversal
Consolidated revenue grew 22.16% year on year, faster than expenses at 19.94%, lifting operating margin by 1.65 percentage points. The sequential picture was weaker: revenue declined 29.19%, while expenses fell 25.33%, so operating margin narrowed by 4.62 percentage points. This reverses the improvement from 2.66% in Q2FY26 to 15.17% in Q4FY26, with the current quarter at 10.55%.
Other income carried a large share of pre-tax profit
Net profit fell 27.85% year on year even as operating profit rose 44.86%, because other income declined 23.35% and interest expense increased 29.30%. The tax rate fell by 2.96 percentage points year on year, which partly softened the earnings decline. Other income was 141.5% of pre-tax profit, so reported profit included a substantial non-operating contribution.
The market reaction was close to its usual move
The stock was up 1.67% on the results date, with trading volume at 5.28 times the reference level. Across the last eight result reactions, it rose five times and fell three times, with a median absolute move of 1.47%. The current move was therefore modestly above its typical size rather than unusual.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹5,448 cr | ₹7,694 cr | -29.19% | +22.16% |
| Other income | ₹1,036 cr | ₹784 cr | +32.22% | -23.35% |
| Expenses | ₹4,873 cr | ₹6,527 cr | -25.33% | +19.94% |
| Operating profit | ₹575 cr | ₹1,167 cr | -50.75% | +44.86% |
| Operating margin (%) | 10.55% | 15.17% | — | — |
| Interest | ₹745 cr | ₹684 cr | +8.99% | +29.30% |
| Depreciation | ₹133 cr | ₹141 cr | -5.39% | +17.48% |
| Profit before tax | ₹732 cr | ₹1,126 cr | -34.95% | -30.83% |
| Tax | ₹209 cr | ₹285 cr | -26.66% | -37.32% |
| Net profit | ₹523 cr | ₹841 cr | -37.76% | -27.85% |
| EPS (₹) | ₹8.44 | ₹13.19 | -36.01% | -18.61% |
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +1.67% | +1.83% |
Volume on the results session was 5.28× its 20-day average.
What to watch
- Whether operating margin holds above 10.55% after the 4.62-percentage-point sequential decline.
- Whether interest expense reverses its 29.30% year-on-year increase.
- Whether other income remains a major contributor after accounting for 141.5% of pre-tax profit.