Linde India's Q4 margin drops 8.50 points as profit falls
Revenue fell 12.37% sequentially while expenses declined only 0.62%, and other income contributed just 5.14% of pre-tax profit.
Filed 30 May 2026, 18:35 IST · after market close · Linde India Ltd (LINDEINDIA)
Key takeaways
- Standalone operating margin fell 7.32 percentage points year on year to 28.14% as expenses grew 15.55% against revenue growth of 3.79%.
- Net profit declined 27.74% year on year to Rs 85.2 cr despite a 59.39% fall in interest costs and a 0.5 percentage-point reduction in the tax rate.
- The stock fell 4.23% on the first session after the results, a larger move than its 3.24% median absolute reaction across the past eight results.
Price around the results
Q4 profit weakened despite modest year-on-year revenue growth
Linde India's standalone revenue grew 3.79% year on year, but operating profit fell 17.61% and net profit fell 27.74%. The sequential comparison was sharper: revenue dropped 12.37% and net profit fell 55.53%. Other income also declined 54.24% year on year and 88.91% sequentially, so it provided limited support to reported profit.
Costs drove the 8.50-point sequential margin decline
Sequentially, expenses fell only 0.62% while revenue fell 12.37%, causing operating margin to narrow 8.50 percentage points. Year on year, expenses grew 15.55% against revenue growth of 3.79%, resulting in a 7.32 percentage-point margin contraction. The tax rate rose 4.98 percentage points sequentially, adding to the pressure on net profit; other income was 5.14% of pre-tax profit.
Margin has now declined for three consecutive quarters
Operating margin fell from 43.83% in Q2FY26 to 36.64% in Q3FY26 and 28.14% in Q4FY26. Even after this decline, Linde India's margin was 9.37 percentage points above the 18.77% median among 51 Commodities peers that had reported the quarter. The year-on-year tax rate was slightly lower by 0.5 percentage points, while interest costs fell 59.39%, but neither offset the operating deterioration.
The initial market reaction was worse than the stock's usual move
The stock fell 4.23% on the first session after the results and was down 4.65% after five sessions, underperforming the market by 3.53% and 2.85%, respectively. Across the past eight result reactions, the stock rose five times and fell three times, with a median absolute move of 3.24%, making this response larger than its usual reaction.
Q4FY26 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹614 cr | ₹701 cr | -12.37% | +3.79% |
| Other income | ₹6 cr | ₹53 cr | -88.91% | -54.24% |
| Expenses | ₹441 cr | ₹444 cr | -0.62% | +15.55% |
| Operating profit | ₹173 cr | ₹257 cr | -32.69% | -17.61% |
| Operating margin (%) | 28.14% | 36.64% | — | — |
| Interest | ₹3 cr | ₹6 cr | -51.99% | -59.39% |
| Depreciation | ₹61 cr | ₹62 cr | -1.48% | +9.50% |
| Profit before tax | ₹115 cr | ₹243 cr | -52.53% | -28.22% |
| Tax | ₹30 cr | ₹52 cr | -41.37% | -29.55% |
| Net profit | ₹85 cr | ₹192 cr | -55.53% | -27.74% |
| EPS (₹) | ₹9.99 | ₹22.46 | -55.52% | -27.71% |
Operating margin of 28.14% compares with a Commodities sector median of 18.77% across 51 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -4.23% | -3.53% |
| Next session | -3.67% | — |
| 5 sessions | -4.65% | -2.85% |
| 15 sessions | +2.91% | — |
| 30 sessions | -1.71% | — |
Volume on the results session was 2.23× its 20-day average.
What to watch
- Whether standalone operating margin holds above 28.14% after the three-quarter decline.
- Whether expenses grow more slowly than revenue after rising 15.55% year on year in Q4FY26.
- Whether the tax rate moves back from 26.17% after its 4.98 percentage-point sequential increase.