Maharashtra Scooters profit drops as last year's other income fades
Operating margin improved year on year, but slipped 3.75 percentage points sequentially as revenue fell and expenses grew faster.
Filed 22 Apr 2026, 11:36 IST · Maharashtra Scooters Ltd (MAHSCOOTER)
Key takeaways
- Standalone operating margin rose 11.16 percentage points year on year to 82.59% as expenses fell 44.74%.
- Net profit fell 92.23% year on year because the comparable quarter included much higher other income, while the tax rate rose 9.77 percentage points.
- The stock was down 5.69% five sessions after the results, a larger move than its 1.14% median absolute post-results move.
Price around the results
Operating profit held up despite lower revenue
Maharashtra Scooters reported standalone revenue growth of -9.32% year on year, but operating profit grew 4.84%. Expenses declined 44.74%, more than offsetting the revenue contraction, while depreciation also fell 100.00%. The result was an 11.16 percentage-point improvement in operating margin to 82.59%.
Sequential margin pressure returned in Q4
Quarter on quarter, revenue fell 6.37% while expenses grew 19.32%, so costs grew faster than revenue and operating margin narrowed 3.75 percentage points. This was the second consecutive quarterly decline in operating margin, from 99.55% in Q2FY26 to 86.34% in Q3FY26 and 82.59% in Q4FY26. The tax rate also rose 0.79 percentage points sequentially.
Profit quality was better than the headline decline suggests
Net profit fell 92.23% year on year, largely because Q4FY25 included other income equal to 57.78, versus current-quarter other income contributing 8.79% of profit before tax. The current tax rate was 26.56%, 9.77 percentage points above the year-ago rate, adding to the year-on-year squeeze. Operating margin remained above the 59.41% median for 52 reported Financial Services peers by 23.18 percentage points.
The market reaction was weaker than its initial response
The stock gained 0.52% on the results date but fell 2.94% the next session and 5.69% over five sessions. That five-session decline was larger than the stock's 1.14% median absolute move after its past eight results, during which it rose three times and fell five times.
Q4FY26 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹6 cr | ₹6 cr | -6.37% | -9.32% |
| Other income | ₹0 cr | ₹0 cr | — | -99.17% |
| Expenses | ₹1 cr | ₹1 cr | +19.32% | -44.74% |
| Operating profit | ₹5 cr | ₹6 cr | -10.43% | +4.84% |
| Operating margin (%) | 82.59% | 86.34% | — | — |
| Interest | ₹0 cr | ₹0 cr | — | — |
| Depreciation | ₹0 cr | ₹0 cr | -100.00% | -100.00% |
| Profit before tax | ₹5 cr | ₹6 cr | -1.62% | -91.20% |
| Tax | ₹1 cr | ₹1 cr | +1.40% | -86.08% |
| Net profit | ₹4 cr | ₹4 cr | -2.67% | -92.23% |
| EPS (₹) | ₹3.50 | ₹3.60 | -2.78% | -92.26% |
Operating margin of 82.59% compares with a Financial Services sector median of 59.41% across 52 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +0.52% | +1.33% |
| Next session | -2.94% | — |
| 5 sessions | -5.69% | -4.07% |
| 15 sessions | -6.70% | — |
| 30 sessions | -4.04% | — |
Volume on the results session was 1.26× its 20-day average.
What to watch
- Whether standalone operating margin recovers from 82.59% after two consecutive quarterly declines.
- Whether expenses stop growing faster than revenue after rising 19.32% quarter on quarter against a 6.37% revenue decline.
- Whether other income remains close to its current 8.79% share of profit before tax.