Godawari Power margin drops 8.19 points as costs outrun revenue
Revenue rose +32.29% YoY, but expenses grew +41.79%, limiting operating profit growth to +2.97% and net profit growth to +2.75%.
Filed 07 Aug 2026, 17:19 IST · after market close · Godawari Power & Ispat Ltd (GPIL)
Key takeaways
- Consolidated operating margin fell 5.42 percentage points YoY to 19.07% as expenses grew +41.79%, ahead of revenue at +32.29%.
- Revenue grew +32.29% YoY, but operating profit rose only +2.97% and net profit +2.75%.
- Other income contributed 12.75% of pre-tax profit, while operating margin remained 4.57 percentage points above the 14.5% Industrials median across 82 peers.
Price around the results
Q1 growth did not convert into profit
Consolidated revenue increased +32.29% YoY, but operating profit rose only +2.97% because expenses grew faster at +41.79%. Sequentially, revenue increased +8.71%, while operating profit fell -23.98% and net profit fell -20.65%. The result was a sharp drop in operating leverage after the previous quarter.
Costs erased the Q4FY26 margin recovery
Sequential expense growth of +20.96% outpaced revenue growth of +8.71%, narrowing operating margin by 8.19 percentage points to 19.07%. Interest expense also rose +33.31% YoY, while depreciation increased +14.09%. Other income accounted for 12.75% of pre-tax profit, so reported earnings included a meaningful non-operating contribution.
Margin stays above peers but retreats from the Q4 peak
The 19.07% operating margin was 4.57 percentage points above the 14.5% median for 82 reported Industrials peers. However, it fell from 27.26% in Q4FY26 after rising from 20.17% in Q3FY26, reversing the prior quarter's improvement. The YoY margin decline was 5.42 percentage points.
Results filed after market close
The consolidated results were filed after market close, so there is no immediate post-result move to assess. Across the last eight result reactions, the stock rose twice and fell six times, with a median absolute move of 1.82%.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,750 cr | ₹1,610 cr | +8.71% | +32.29% |
| Other income | ₹38 cr | ₹18 cr | +108.40% | +50.51% |
| Expenses | ₹1,417 cr | ₹1,171 cr | +20.96% | +41.79% |
| Operating profit | ₹334 cr | ₹439 cr | -23.98% | +2.97% |
| Operating margin (%) | 19.07% | 27.26% | — | — |
| Interest | ₹20 cr | ₹19 cr | +4.52% | +33.31% |
| Depreciation | ₹50 cr | ₹48 cr | +3.43% | +14.09% |
| Profit before tax | ₹302 cr | ₹390 cr | -22.54% | +3.89% |
| Tax | ₹79 cr | ₹109 cr | -27.38% | +7.19% |
| Net profit | ₹222 cr | ₹280 cr | -20.65% | +2.75% |
| EPS (₹) | ₹3.59 | ₹4.56 | -21.27% | +1.99% |
Operating margin of 19.07% compares with a Industrials sector median of 14.50% across 82 peers that have reported Q1FY27.
What to watch
- Whether operating margin recovers from 19.07% after the 8.19-percentage-point sequential decline.
- Whether expense growth falls below revenue growth after +20.96% QoQ versus +8.71%.
- Whether other income remains near 12.75% of pre-tax profit.