Godrej Industries' Q4 profit doubles as operating margin recovers
Revenue grew faster than expenses, but other income remained a major contributor to profit and the lower tax rate also aided earnings.
Filed 15 May 2026, 17:44 IST · after market close · Godrej Industries Ltd (GODREJIND)
Key takeaways
- Consolidated Q4FY26 net profit rose 102.08% year on year as revenue grew faster than expenses and operating profit increased 96.63%.
- Operating margin improved 4.90 percentage points year on year to 15.17%, marking a third consecutive quarterly rise from Q2FY26's 2.66%.
- Other income contributed 69.61% of profit before tax, while the tax rate fell 9.19 percentage points year on year to 25.30%.
Price around the results
Revenue growth translated into a sharp operating rebound
Godrej Industries reported consolidated revenue growth of 33.12% year on year in Q4FY26, while expenses rose 25.85%, allowing operating profit to increase 96.63%. The same pattern was stronger sequentially: revenue rose 52.31% against expense growth of 44.82%, widening operating margin by 4.40 percentage points. This operating improvement, rather than revenue growth alone, helped net profit rise 102.08% year on year.
Other income and tax changes shaped reported profit
Other income was Rs 783.58 cr and represented 69.61% of profit before tax, making it a significant component of the quarter's earnings. The tax rate declined 9.19 percentage points year on year to 25.30%, which also supported the increase in net profit. Interest expense still rose 26.07% year on year, so the improvement in reported profit came despite a higher financing burden.
Operating margin has risen for three straight quarters
Operating margin increased from 2.66% in Q2FY26 to 10.77% in Q3FY26 and 15.17% in Q4FY26. That marks a third consecutive quarterly improvement and places the latest margin 4.90 percentage points above Q4FY25. Sequentially, the margin gain followed revenue growth of 52.31% outpacing expense growth of 44.82%.
The initial stock reaction was firmer than its usual move
The stock gained 1.87% on the reaction day, although it opened with a 0.44% gap lower; the five-session move was a 2.25% gain. That initial response was somewhat above the stock's median absolute post-results move of 1.41%, while its recent history was evenly split between four gains and four declines. The stock was down 7.83% after 15 sessions and up 5.49% after 30 sessions.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹7,694 cr | ₹5,051 cr | +52.31% | +33.12% |
| Other income | ₹784 cr | ₹694 cr | +12.90% | +12.81% |
| Expenses | ₹6,527 cr | ₹4,507 cr | +44.82% | +25.85% |
| Operating profit | ₹1,167 cr | ₹544 cr | +114.43% | +96.63% |
| Operating margin (%) | 15.17% | 10.77% | — | — |
| Interest | ₹684 cr | ₹626 cr | +9.21% | +26.07% |
| Depreciation | ₹141 cr | ₹126 cr | +11.79% | +27.61% |
| Profit before tax | ₹1,126 cr | ₹486 cr | +131.62% | +77.21% |
| Tax | ₹285 cr | ₹133 cr | +113.58% | +29.97% |
| Net profit | ₹841 cr | ₹353 cr | +138.44% | +102.08% |
| EPS (₹) | ₹13.19 | ₹6.07 | +117.30% | +142.46% |
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +1.87% | +1.84% |
| Next session | -0.08% | — |
| 5 sessions | +2.25% | +0.61% |
| 15 sessions | -7.83% | — |
| 30 sessions | +5.49% | — |
Volume on the results session was 1.41× its 20-day average.
What to watch
- Whether consolidated operating margin holds above 15.17% after the three-quarter recovery.
- Whether other income's contribution to profit before tax remains below or near 69.61%.
- Whether interest expense growth moderates from 26.07% year on year.