Grindwell's Q1 margin drops 7.20 points sequentially
Year-on-year revenue grew 14.19%, but expenses rose 5.75% sequentially despite a 4.62% revenue decline.
Filed 24 Jul 2026, 18:57 IST · after market close · Grindwell Norton Ltd (GRINDWELL)
Key takeaways
- Consolidated operating margin fell 7.2 percentage points QoQ to 26.6% as revenue declined 4.62% while expenses rose 5.75%.
- Revenue grew 14.19% YoY and net profit rose 22.11%, with operating margin improving 0.37 percentage points.
- Other income contributed 15.99% of pre-tax profit, making reported earnings less purely operating.
Price around the results
Q1 growth held up year on year, but momentum weakened
Consolidated revenue rose 14.19% YoY, and operating profit increased 15.8%, but the sequential picture was weaker: revenue fell 4.62% and operating profit declined 24.94%. Net profit still grew 22.11% YoY to Rs 115.32 cr, while falling 3.37% QoQ.
Costs drove the sequential margin squeeze
Expenses rose 5.75% QoQ even as revenue fell 4.62%, cutting operating margin by 7.2 percentage points. Year on year, expenses grew 13.62%, slightly slower than revenue growth of 14.19%, which lifted margin by 0.37 percentage points. Interest expense fell 19.3% QoQ and 36.11% YoY, but other income still accounted for 15.99% of pre-tax profit.
Margin remains above peers after the Q4 spike
The 26.6% operating margin was 19.15 percentage points above the 7.45% median for the 11 Industrials peers that had reported, placing Grindwell Norton highest in that comparison. The margin had risen to 33.8% in Q4FY26 after 26.68% in Q3FY26, so the latest decline gives back much of the previous quarter’s expansion rather than extending a multi-quarter deterioration.
No immediate market reaction after the filing
The results were filed after market close, so there was no market response in the reported period. Across the last eight results reactions, the stock rose twice and fell six times, with a median absolute move of 2.86%; the historical pattern has therefore been more often negative than positive.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹803 cr | ₹842 cr | -4.62% | +14.19% |
| Other income | ₹25 cr | ₹21 cr | +15.78% | +3.19% |
| Expenses | ₹590 cr | ₹558 cr | +5.75% | +13.62% |
| Operating profit | ₹214 cr | ₹285 cr | -24.94% | +15.80% |
| Operating margin (%) | 26.60% | 33.80% | — | — |
| Interest | ₹1 cr | ₹2 cr | -19.30% | -36.11% |
| Depreciation | ₹27 cr | ₹26 cr | +2.39% | +2.39% |
| Profit before tax | ₹154 cr | ₹158 cr | -2.62% | +22.33% |
| Tax | ₹39 cr | ₹38 cr | +0.91% | +23.48% |
| Net profit | ₹115 cr | ₹119 cr | -3.37% | +22.11% |
| EPS (₹) | ₹10.43 | ₹10.73 | -2.80% | +22.27% |
Operating margin of 26.60% compares with a Industrials sector median of 7.45% across 11 peers that have reported Q1FY27.
What to watch
- Whether operating margin recovers from 26.6% after the 7.2-percentage-point QoQ decline.
- Whether expenses continue to grow faster than revenue after the latest 5.75% QoQ expense increase.
- Whether other income remains near 15.99% of pre-tax profit.