KPR Mill profit rises despite flat revenue; sequential margin slips
Operating costs grew faster than revenue sequentially, while other income remained a meaningful contributor to pre-tax profit.
Filed 12 May 2026, 13:45 IST · K P R Mill Ltd (KPRMILL)
Key takeaways
- Consolidated net profit rose 11.06% year on year even as revenue increased just 0.89%, helped by a 0.71-percentage-point expansion in operating margin.
- Sequential revenue growth of 21.62% came with expenses rising 22.46%, narrowing operating margin by 0.55 percentage points to 19.52%.
- Other income contributed 12.67% of pre-tax profit, while the tax rate rose 8.28 percentage points sequentially to 28.96%.
Price around the results
Profit growth outpaced largely flat annual revenue
KPR Mill's consolidated revenue grew only 0.89% year on year, but operating profit increased 4.70% as expenses were flat and operating margin widened by 0.71 percentage points. Net profit rose 11.06% to Rs 227.17 cr, although the increase was partly supported by other income, which rose 262.67% year on year to Rs 40.51 cr. Sequentially, revenue increased 21.62% and operating profit 18.26%, but net profit grew a more modest 8.90%.
Sequential cost growth ended the margin recovery
Expenses grew 22.46% sequentially, faster than the 21.62% increase in revenue, which reduced operating margin by 0.55 percentage points to 19.52%. This interrupted the improvement from 17.57% in Q1FY26 to 20.07% in Q3FY26, though the margin remained above the 18.81% recorded in Q4FY25. Interest expense also rose 35.74% sequentially.
Margin remains above the reported peer median
KPR Mill's 19.52% operating margin was 4.71 percentage points above the 14.81% median for the 93 Consumer Discretionary peers that had reported the same quarter. The annual comparison is cleaner on profitability: revenue was nearly unchanged, while flat expenses supported the 0.71-percentage-point margin improvement.
Higher tax rate and other income shaped reported profit
The sequential tax rate increased by 8.28 percentage points to 28.96%, limiting the conversion of the 21.60% rise in pre-tax profit into net profit growth. Other income accounted for 12.67% of pre-tax profit, so reported earnings had a material non-operating contribution. Year on year, the tax rate was also 1.82 percentage points higher and interest expense rose 32.91%.
The initial share-price move was weaker than its usual reaction
The stock fell 1.72% on the results day and 2.41% by the next session. That was a larger move than the stock's median absolute reaction of 1.08% across its last eight results, when it fell after five and rose after three. It had recovered to a 2.03% gain by the fifth session.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,785 cr | ₹1,467 cr | +21.62% | +0.89% |
| Other income | ₹41 cr | ₹34 cr | +20.93% | +262.67% |
| Expenses | ₹1,436 cr | ₹1,173 cr | +22.46% | +0.00% |
| Operating profit | ₹348 cr | ₹295 cr | +18.26% | +4.70% |
| Operating margin (%) | 19.52% | 20.07% | — | — |
| Interest | ₹15 cr | ₹11 cr | +35.74% | +32.91% |
| Depreciation | ₹54 cr | ₹54 cr | +0.24% | +4.34% |
| Profit before tax | ₹320 cr | ₹263 cr | +21.60% | +13.92% |
| Tax | ₹93 cr | ₹54 cr | +70.28% | +21.59% |
| Net profit | ₹227 cr | ₹209 cr | +8.90% | +11.06% |
| EPS (₹) | ₹6.65 | ₹6.10 | +9.02% | +11.20% |
Operating margin of 19.52% compares with a Consumer Discretionary sector median of 14.81% across 93 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -1.72% | +0.11% |
| Next session | -2.41% | — |
| 5 sessions | +2.03% | +2.86% |
| 15 sessions | +15.81% | — |
| 30 sessions | +29.95% | — |
Volume on the results session was 1.89× its 20-day average.
What to watch
- Whether operating margin moves back above the 20.07% recorded in Q3FY26.
- Whether the tax rate falls from 28.96% toward the 20.68% reported in Q3FY26.
- Whether other income remains near its 12.67% share of pre-tax profit.