Grindwell Norton expands margin as Q4 operating profit rises 18.23%
Lower interest costs and a 1.22-point tax-rate decline supported the 24.86% sequential rise in consolidated net profit.
Filed 03 Jun 2026, 15:36 IST · after market close · Grindwell Norton Ltd (GRINDWELL)
Key takeaways
- Consolidated revenue rose 11.88% sequentially, while operating profit grew faster at 18.23%.
- Operating margin expanded 1.05 percentage points to 19.50% as expenses grew slower than revenue.
- Net profit increased 24.86% sequentially, but other income contributed 13.44% of pre-tax profit.
Price around the results
Q4 operating profit outpaced revenue growth
Grindwell Norton’s consolidated revenue increased 11.88% sequentially, while operating profit grew 18.23%, indicating better operating leverage in Q4FY26. Expenses rose 10.44%, slower than revenue, which lifted operating margin by 1.05 percentage points. Net profit grew 24.86% to Rs 119.34 cr.
Lower costs and tax rate supported profit conversion
Interest expense fell 20.09% sequentially and depreciation declined 3.93%, adding to the operating improvement. The tax rate fell 1.22 percentage points to 24.37%, which also helped net profit grow faster than pre-tax profit. Other income was 13.44% of pre-tax profit, so part of reported earnings came from non-operating income.
Margin recovered from Q3 and stayed above the peer median
Operating margin improved from 18.16% in Q2FY26 and 18.45% in Q3FY26 to 19.50% in Q4FY26, reversing the Q2 dip rather than extending it. The margin was 3.84 percentage points above the 15.66% median for 71 Industrials peers that had reported the same quarter. This places Grindwell Norton above the sector comparison despite the absence of a year-on-year comparison in the reported data.
Presentation flags capacity expansion and operating initiatives
The company said the C-Flex extrusion line was undergoing capacity expansion in LS. It also said recovered trim grains were being used in CBG to replace PNG in process applications and that electrocoagulation was being used for process-effluent treatment. The presentation said total capex over the last five years was approximately Rs 794 cr, equivalent to 6% of revenue.
Latest market move was unusually large for this stock
In the latest reaction window, the stock rose 6.75% on day zero and 10.19% by day five, with day-zero volume at 12.28 times the reference level. That was larger than the stock’s median absolute move of 2.86% after its last eight results; those reactions were down six times and up twice.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹842 cr | ₹753 cr | +11.88% |
| Other income | ₹21 cr | ₹19 cr | +13.67% |
| Expenses | ₹678 cr | ₹614 cr | +10.44% |
| Operating profit | ₹164 cr | ₹139 cr | +18.23% |
| Operating margin (%) | 19.50% | 18.45% | — |
| Interest | ₹2 cr | ₹2 cr | -20.09% |
| Depreciation | ₹26 cr | ₹27 cr | -3.93% |
| Profit before tax | ₹158 cr | ₹128 cr | +22.86% |
| Tax | ₹38 cr | ₹33 cr | +17.04% |
| Net profit | ₹119 cr | ₹96 cr | +24.86% |
| EPS (₹) | ₹10.73 | ₹8.60 | +24.77% |
Operating margin of 19.50% compares with a Industrials sector median of 15.66% across 71 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +6.75% | +8.24% |
| Next session | +6.05% | — |
| 5 sessions | +10.19% | +12.36% |
| 15 sessions | +10.34% | — |
| 30 sessions | +26.15% | — |
Volume on the results session was 12.28× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Expansion
- The C-Flex extrusion line is undergoing capacity expansion in LS.
- Total capex during the last five years was approximately Rs.794 crores, or 6% of revenue.
New initiatives
- The company uses electrocoagulation to treat process effluent.
- Recovered grains from trims are used in CBG to replace PNG for process applications.
- A new ER Pulse Dashboard was launched for monthly reporting and proactive action.
What to watch
- Whether operating margin holds above 19.50% after the Q4 recovery.
- Whether other income remains near or below its 13.44% share of pre-tax profit.
- Progress on the C-Flex extrusion-line capacity expansion in LS.