IFCI's Q4 profit falls 87% YoY despite 14% revenue growth
The consolidated operating margin recovered sequentially, but remained 86.04 percentage points below last year's unusually high level.
Filed 29 Apr 2026, 18:31 IST · after market close · IFCI Ltd (IFCI)
Key takeaways
- Consolidated net profit fell 86.92% YoY to Rs 34.06 cr despite revenue growth of 13.74%.
- Operating margin improved 4.64 percentage points QoQ as revenue rose 3.2% while expenses fell 3.5%.
- The negative 24.49% tax rate boosted reported profit, while other income was a loss equal to 14.73% of pre-tax profit.
Price around the results
Revenue grew, but the YoY profit base was sharply different
Consolidated revenue rose 13.74% YoY, but operating profit fell 68.33% and net profit dropped 86.92%. The comparison is distorted by expenses moving from a negative Rs 79.58 cr in Q4FY25 to Rs 314.26 cr this quarter, pushing the operating margin down 86.04 percentage points. Interest expense still fell 23.96% YoY, but that was not enough to offset the change in operating costs.
Sequential margin recovery came from lower expenses
Revenue increased 3.2% QoQ while expenses declined 3.5%, lifting operating margin by 4.64 percentage points to 33.2%. Interest costs were broadly stable, falling 0.58% QoQ, while depreciation rose 9.11%. This was the second consecutive quarter of margin recovery after the margin fell from 66.84% in Q2FY26 to 28.56% in Q3FY26.
Profit quality was affected by tax and other income
The reported tax rate was negative 24.49%, so a tax credit supported net profit even though pre-tax profit was Rs 27.36 cr. Other income was negative Rs 4.03 cr and represented negative 14.73% of pre-tax profit, rather than providing support to earnings. Operating margin was also below the 59.41% median for 52 Financial Services peers that had reported, by 26.21 percentage points; IFCI ranked 12th from the bottom.
The initial share-price fall was within the stock's usual range
The stock fell 2.18% on the first session after the results and was down 5.02% on the next session, before the decline narrowed to 0.41% by day five. The first-day move was close to the 2.37% median absolute move after IFCI's past eight results, when four reactions were positive and four were negative. The results were filed after market close on 29 Apr 2026.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹470 cr | ₹456 cr | +3.20% | +13.74% |
| Other income | ₹-4 cr | ₹6 cr | — | — |
| Expenses | ₹314 cr | ₹326 cr | -3.50% | — |
| Operating profit | ₹156 cr | ₹130 cr | +19.96% | -68.33% |
| Operating margin (%) | 33.20% | 28.56% | — | — |
| Interest | ₹102 cr | ₹103 cr | -0.58% | -23.96% |
| Depreciation | ₹23 cr | ₹21 cr | +9.11% | +9.75% |
| Profit before tax | ₹27 cr | ₹13 cr | +118.01% | -91.94% |
| Tax | ₹-7 cr | ₹-8 cr | +18.98% | — |
| Net profit | ₹34 cr | ₹21 cr | +63.59% | -86.92% |
| EPS (₹) | ₹0.05 | ₹-0.06 | — | -94.25% |
Operating margin of 33.20% compares with a Financial Services sector median of 59.41% across 52 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -2.18% | -1.78% |
| Next session | -5.02% | — |
| 5 sessions | -0.41% | -1.40% |
| 15 sessions | +0.11% | — |
| 30 sessions | +14.90% | — |
Volume on the results session was 1.56× its 20-day average.
What to watch
- Whether operating margin holds above 33.2% after the sequential recovery.
- Whether expenses remain below the current Rs 314.26 cr level relative to revenue.
- Whether reported profit remains supported by a negative tax rate after the current negative 24.49%.