Linde India's margin slips 5.61 points despite 21.59% revenue growth
Expenses grew faster than revenue, while a lower tax rate softened the impact on net profit.
Filed 11 Aug 2026, 18:34 IST · after market close · Linde India Ltd (LINDEINDIA)
Key takeaways
- Revenue grew +21.59% YoY, but expenses grew +32.02%, cutting operating margin by 5.61 percentage points to 28.89%.
- Net profit fell -2.43% YoY to Rs 104.59 cr despite a 0.62 percentage-point lower tax rate, as interest rose +88.57% and operating profit rose only +1.79%.
- Sequential momentum improved as revenue grew +13.03% and expenses +11.86%, lifting operating margin by 0.75 percentage points and net profit by +35.04%.
Price around the results
Revenue growth did not convert into higher earnings
On a consolidated basis, Q1FY27 revenue growth was outweighed by a sharper rise in expenses, leaving operating profit up only +1.79% YoY. The resulting 5.61 percentage-point margin contraction pulled net profit down -2.43% despite revenue growth of +21.59%. Other income contributed 5.34% of pre-tax profit, so it was a meaningful but limited support to reported earnings.
Sequential margin recovery came with a higher interest bill
The quarter was better sequentially: revenue grew +13.03% while expenses rose +11.86%, lifting operating margin by 0.75 percentage points. However, interest expense increased +123.31% QoQ, which absorbed part of the operating improvement. The tax rate fell 8.13 percentage points QoQ and helped net profit rise +35.04%; this benefit was much smaller YoY, with the tax rate down only 0.62 percentage points.
Margin remains above the 67-peer sector median
Linde India's 28.89% operating margin was 9.62 percentage points above the 19.27% median for the 67 Commodities peers that had reported the same quarter. The trend, however, remains weaker than earlier in the year: margin fell from 43.83% in Q2FY26 to 36.64% in Q3FY26 and 28.14% in Q4FY26 before the latest sequential recovery.
No post-results market move has been recorded yet
The consolidated results were filed after market close, so there is no immediate market reaction to assess. Across the eight recent result reactions, the stock rose four times and fell four times, with a median absolute move of 3.24%, indicating a mixed historical response rather than a consistent direction.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹694 cr | ₹614 cr | +13.03% | +21.59% |
| Other income | ₹7 cr | ₹7 cr | +13.89% | +15.48% |
| Expenses | ₹494 cr | ₹441 cr | +11.86% | +32.02% |
| Operating profit | ₹201 cr | ₹173 cr | +16.00% | +1.79% |
| Operating margin (%) | 28.89% | 28.14% | — | — |
| Interest | ₹6 cr | ₹3 cr | +123.31% | +88.57% |
| Depreciation | ₹62 cr | ₹61 cr | +2.70% | +11.45% |
| Profit before tax | ₹140 cr | ₹116 cr | +20.39% | -3.23% |
| Tax | ₹35 cr | ₹39 cr | -9.05% | -5.55% |
| Net profit | ₹105 cr | ₹77 cr | +35.04% | -2.43% |
| EPS (₹) | ₹12.26 | ₹9.08 | +35.02% | -2.47% |
Operating margin of 28.89% compares with a Commodities sector median of 19.27% across 67 peers that have reported Q1FY27.
What to watch
- Whether operating margin holds above 28.89% after the recent sequential recovery.
- Whether expense growth moderates from +32.02% YoY.
- Whether the interest increase of +123.31% QoQ reverses or persists.