Ingersoll-Rand India shares slide as operating margin falls to 23.04%
Costs fell less than revenue and other income supplied 26.37% of pre-tax profit, while the stock's first-day fall was unusually large.
Filed 29 May 2026, 16:24 IST · after market close · Ingersoll-Rand (India) Ltd (INGERRAND)
Key takeaways
- Standalone operating margin fell 2.85 percentage points YoY to 23.04% as expenses declined less than revenue.
- Other income contributed 26.37% of pre-tax profit, cushioning a 17.29% YoY drop in operating profit and limiting net-profit decline to 4.21%.
- The stock fell 11.14% on the first trading day, far beyond its 1.96% median absolute move after the past eight results.
Price around the results
Q4 revenue contraction weighs on standalone operating profit
Revenue fell 7.05% YoY to Rs 299.63 cr, while operating profit declined 17.29%, showing that the lower sales base had a disproportionate effect on earnings. Sequentially, revenue fell 34.22% and operating profit fell 39.58%, marking a sharp loss of momentum from Q3FY26. Net profit fell only 4.21% YoY because higher other income and lower interest costs partly offset the operating decline.
Lower costs did not keep pace with the sales decline
Expenses fell 3.47% YoY against the 7.05% revenue decline, so the cost base contracted less than sales and operating margin narrowed by 2.85 percentage points. The same pattern appeared sequentially: expenses fell 32.42% against a 34.22% revenue drop, cutting margin by 2.04 percentage points. Other income rose 101.57% YoY and accounted for 26.37% of pre-tax profit, while the tax rate increased 1.30 percentage points to 26.26%, making reported profit less representative of operating performance.
Margin remains above the Industrials peer median despite the decline
Operating margin has moved unevenly across recent quarters, falling from 25.89% in Q4FY25 to 23.54% in Q1FY26, staying near that level in Q2FY26, rising to 25.08% in Q3FY26 and then falling to 23.04% in Q4FY26. The latest margin was 7.38 percentage points above the 15.66% median for the 71 Industrials peers that had reported the same quarter. This keeps Ingersoll-Rand India above the sector median, even as its own margin is below both the previous quarter and the year-ago quarter.
First-day sell-off was unusual for the stock
The stock fell 11.14% on the first trading day and was down 14.32% by the next session, with volume at 5.82 times the reference level. That reaction was much larger than the 1.96% median absolute move after the company's past eight results, when five reactions were positive and three were negative. The session also overlapped with a corporate action, which is relevant context for interpreting the move.
Q4FY26 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹300 cr | ₹455 cr | -34.22% | -7.05% |
| Other income | ₹23 cr | ₹-15 cr | — | +101.57% |
| Expenses | ₹231 cr | ₹341 cr | -32.42% | -3.47% |
| Operating profit | ₹69 cr | ₹114 cr | -39.58% | -17.29% |
| Operating margin (%) | 23.04% | 25.08% | — | — |
| Interest | ₹0 cr | ₹0 cr | -61.70% | -75.00% |
| Depreciation | ₹4 cr | ₹4 cr | +14.68% | +1.72% |
| Profit before tax | ₹88 cr | ₹95 cr | -7.57% | -2.53% |
| Tax | ₹23 cr | ₹23 cr | -0.52% | +2.53% |
| Net profit | ₹65 cr | ₹72 cr | -9.85% | -4.21% |
| EPS (₹) | ₹20.53 | ₹22.77 | -9.84% | -4.20% |
Operating margin of 23.04% 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 | -11.14% | -10.44% |
| Next session | -14.32% | — |
| 5 sessions | -10.08% | -8.28% |
| 15 sessions | +7.89% | — |
| 30 sessions | +0.91% | — |
Volume on the results session was 5.82× its 20-day average.
What to watch
- Whether revenue recovers from Rs 299.63 cr after the 34.22% sequential decline.
- Whether operating margin moves back above the 25.08% reported in Q3FY26.
- Whether other income remains a material contributor after accounting for 26.37% of pre-tax profit, and whether the tax rate moves from 26.26%.