KSB margin drops to 8.45% as costs outpace revenue
Consolidated net profit fell 22.87% YoY, while the five-session stock reaction was much sharper than its usual post-results move.
Filed 30 Apr 2026, 15:07 IST · KSB Ltd (KSB)
Key takeaways
- KSB's consolidated operating margin fell 2.92 percentage points YoY to 8.45% as expenses grew 4.32% while revenue rose 0.99%.
- Net profit declined 22.87% YoY to Rs 39.8 cr, with other income contributing 33.02% of pre-tax profit.
- The stock fell 10.96% over five sessions, far beyond KSB's 2.63% median absolute post-results move.
Price around the results
Revenue was almost flat, but operating profit fell sharply
Consolidated revenue rose just 0.99% YoY to Rs 601.3 cr, while operating profit declined 24.96% to Rs 50.8 cr. Expenses grew 4.32%, faster than revenue, driving the 2.92 percentage-point margin contraction. Sequentially, revenue fell 23.3% and operating profit dropped 60.8%, showing a sharp loss of momentum from Q3FY26.
Cost growth weakened margins and other income supported profit
The YoY margin decline came from expenses growing faster than revenue, rather than from interest costs, which fell 25.00%. Other income accounted for 33.02% of pre-tax profit, making reported earnings less reflective of operating performance. The tax rate increased 0.11 percentage points YoY to 25.33%, so a lower tax charge did not flatter net profit.
Q4 reversed the Q3 margin recovery and lagged industrial peers
Operating margin moved from 13.71% in Q1FY26 to 13.05% in Q2, rose to 16.53% in Q3, and then fell to 8.45% in Q4. KSB's margin was 7.21 percentage points below the 15.66% median among 71 Industrials peers that had reported, placing it 10th from the bottom.
The initial share move was mild, but the later decline was unusual
The stock fell 0.68% on the results day, within its 2.63% median absolute move after the last four results. The decline widened to 10.96% after five sessions, well beyond that historical range. The reaction period overlaps with a corporate action, so the move is not a clean results-only signal.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹601 cr | ₹784 cr | -23.30% | +0.99% |
| Other income | ₹18 cr | ₹-5 cr | — | +10.00% |
| Expenses | ₹551 cr | ₹654 cr | -15.88% | +4.32% |
| Operating profit | ₹51 cr | ₹130 cr | -60.80% | -24.96% |
| Operating margin (%) | 8.45% | 16.53% | — | — |
| Interest | ₹1 cr | ₹1 cr | -25.00% | -25.00% |
| Depreciation | ₹15 cr | ₹16 cr | -7.05% | +4.32% |
| Profit before tax | ₹53 cr | ₹108 cr | -50.74% | -22.75% |
| Tax | ₹14 cr | ₹27 cr | -50.37% | -22.41% |
| Net profit | ₹40 cr | ₹81 cr | -50.86% | -22.87% |
| EPS (₹) | ₹2.28 | ₹4.65 | -50.97% | -23.23% |
Operating margin of 8.45% 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 | -0.68% | +0.06% |
| Next session | -9.13% | — |
| 5 sessions | -10.96% | -10.95% |
| 15 sessions | -16.81% | — |
| 30 sessions | -13.19% | — |
Volume on the results session was 1.73× its 20-day average.
What to watch
- Whether operating margin recovers from 8.45% toward the 15.66% Industrials peer median.
- Whether expenses grow more slowly than revenue after the 4.32% YoY expense increase against 0.99% revenue growth.
- Whether other income remains a large contributor after accounting for 33.02% of pre-tax profit.