Revenue rose 24.70%, but Inox India's margin narrowed to 20.55%
Higher material costs and Savli expansion spending pushed expenses ahead of revenue growth, while other income made up 17.81% of pre-tax profit.
Filed 14 Jul 2026, 12:51 IST · Inox India Ltd (INOXINDIA)
Key takeaways
- Consolidated revenue grew 24.70% year on year, but expenses rose faster at 27.20%, narrowing operating margin by 1.56 percentage points.
- Net profit increased 14.85% year on year to Rs 75.24 cr, with other income contributing 17.81% of pre-tax profit.
- The stock gained 0.96% on the results day, close to its 1.94% median absolute move after the past eight results.
Price around the results
Growth accelerated, but profit lagged revenue
Consolidated revenue rose 24.70% year on year and 7.49% sequentially, while net profit grew 14.85% year on year and 23.95% sequentially. Operating profit increased only 15.92% year on year because expenses grew faster than revenue in both comparisons. EPS rose 14.82% year on year to Rs 8.29.
Material costs and Savli spending weighed on margins
Operating margin narrowed by 1.56 percentage points year on year and 1.40 percentage points sequentially as costs grew faster than revenue. Management said material cost rose to 43.9% in Q4FY26 from 40.9% in Q4FY25, while the new Savli facility was still undergoing productivity stabilisation. The company also said higher fund utilisation for Savli, leased tankers and working capital for long-lead projects increased finance costs; interest expense rose 200.00% year on year.
Margin remains above the Industrials peer median
The 20.55% operating margin was 4.89 percentage points above the 15.66% median for 71 Industrials companies that had reported the same quarter. However, margin has fallen from 22.42% in Q1FY26 and remains below 22.11% in Q4FY25, indicating weaker operating conversion than a year earlier. Other income was 17.81% of pre-tax profit, so reported profit included a meaningful non-operating contribution; the tax rate also rose 0.45 percentage points year on year.
Savli expansion adds capacity while new products broaden the portfolio
Management said a new cryogenic tank manufacturing facility and related products had started at Savli, while the plant was expanded for cryogenic tanks and tankers given on lease. The company said it had manufactured and delivered an MRI cryostat for a Government of India project and received Heineken approval for stainless steel kegs. Management also cited industry estimates that global hydrogen trade could reach 53 MT by 2050 and LNG demand could rise approximately 60% by 2040; these are company-presented external forecasts, not Inox India's guidance.
Initial market response was ordinary for this stock
The stock rose 0.96% on the results day and was up 2.68% after five sessions, while the contemporaneous relative move after five sessions was 1.48%. Across the past eight results, the stock rose three times and fell five times, with a median absolute move of 1.94%, making the initial reaction broadly typical. The 32.70% move after 30 sessions was larger, but the period overlapped a corporate action.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹461 cr | ₹429 cr | +7.49% | +24.70% |
| Other income | ₹18 cr | ₹-1 cr | — | +35.46% |
| Expenses | ₹366 cr | ₹334 cr | +9.43% | +27.20% |
| Operating profit | ₹95 cr | ₹94 cr | +0.61% | +15.92% |
| Operating margin (%) | 20.55% | 21.95% | — | — |
| Interest | ₹4 cr | ₹3 cr | +17.00% | +200.00% |
| Depreciation | ₹9 cr | ₹9 cr | -4.04% | +26.33% |
| Profit before tax | ₹100 cr | ₹80 cr | +24.46% | +15.54% |
| Tax | ₹25 cr | ₹20 cr | +25.98% | +17.69% |
| Net profit | ₹75 cr | ₹61 cr | +23.95% | +14.85% |
| EPS (₹) | ₹8.29 | ₹6.69 | +23.92% | +14.82% |
Operating margin of 20.55% 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 | +0.96% | +0.82% |
| Next session | +1.28% | — |
| 5 sessions | +2.68% | +1.48% |
| 15 sessions | +6.63% | — |
| 30 sessions | +32.70% | — |
Volume on the results session was 0.76× 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.
Guidance & outlook
- Global hydrogen trade is expected to reach 53 MT by 2050.
- Shell forecasts LNG demand to rise approximately 60% by 2040.
- PNGRB estimates LNG-fuelled trucks will increase from 50,000 in 2030 to 500,000 in 2040.
Expansion
- A new cryogenic tank manufacturing facility and other products were started at Savli.
- The Savli plant was expanded for cryogenic tanks and tankers given on lease.
New initiatives
- The company manufactured and delivered an MRI cryostat for a government of India project.
- The company received approval for stainless steel kegs from Heineken.
Problems & risks
- The new Savli facility is currently undergoing productivity stabilisation.
- Material cost was higher at 43.9% in Q4 FY26 versus 40.9% in Q4 FY25.
- Finance cost increased because of higher fund utilisation for the Savli expansion, leased tankers and working capital for long-lead projects.
- FY26 included an exceptional expense related to procedural costs awarded against the company in a US arbitration case.
What to watch
- Whether operating margin recovers from 20.55% as Savli productivity stabilises.
- Whether material cost moves below the 43.9% level reported for Q4FY26.
- Whether finance costs remain elevated after the Savli expansion, leased tankers and long-lead project working-capital needs.