Revenue grew 32.88%, but operating margin fell to 8.22%
Faster cost growth and a lower tax rate shaped the quarter, while the stock reaction was broadly in line with its recent results history.
Filed 28 Apr 2026, 15:44 IST · after market close · Motherson Sumi Wiring India Ltd (MSUMI)
Key takeaways
- On a standalone basis, revenue grew 32.88% year on year, but expenses grew faster at 36.74%, reducing operating margin by 2.59 percentage points to 8.22%.
- Net profit rose only 1.44% year on year as a 3.95-percentage-point lower tax rate offset a 3.63% decline in profit before tax.
- The stock rose 0.76% on the results session, close to its 1.21% median absolute move after the past eight results.
Price around the results
Growth did not translate into operating profit
Standalone revenue increased 32.88% year on year to Rs 3,334.62 cr, but operating profit grew only 1.05% to Rs 274.06 cr. Expenses rose 36.74%, outpacing revenue and leaving net profit up just 1.44% at Rs 167.30 cr. The quarter’s EPS was Rs 0.25, versus Rs 0.37 a year earlier.
Cost growth drove the second straight margin decline
Operating margin narrowed 0.87 percentage points sequentially and 2.59 percentage points year on year, as expenses grew faster than revenue in both comparisons. The 8.22% margin was down for a second consecutive quarter after 10.13% in Q2FY26 and 9.09% in Q3FY26. Interest rose 14.62% year on year and depreciation increased 20.42%, adding to the pressure below operating profit.
Lower tax rate supported reported profit
Profit before tax fell 3.63% year on year, but the tax rate declined 3.95 percentage points to 20.98%, limiting the impact on net profit. Other income contributed only 0.62% of profit before tax, so it was not a material source of earnings support. Against 93 reported Consumer Discretionary peers, the company’s operating margin was 6.59 percentage points below the 14.81% sector median and ranked 16th from the bottom.
New facilities were in operation or ramp-up
The presentation said Pathredi’s EV and ICE facility had reached commercial start of production in Q4FY26 and was ramping up. Management also said Kharkhoda’s ICE facility was operational. These comments provide the operating context for the company’s expansion footprint, but the quarter’s margin data still showed cost growth ahead of revenue growth.
Market reaction was within the stock’s usual range
The stock gained 0.76% on the results session, with a 0.74% opening gap lower, and was up 3.31% after one trading day. The eight-result history is evenly split between four up moves and four down moves, with a median absolute move of 1.21%, making the initial reaction ordinary for this stock. The five-session return reached 9.15%, with a 7.77% gain relative to the benchmark.
Q4FY26 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹3,335 cr | ₹2,887 cr | +15.50% | +32.88% |
| Other income | ₹1 cr | ₹1 cr | +38.95% | -18.01% |
| Expenses | ₹3,061 cr | ₹2,625 cr | +16.60% | +36.74% |
| Operating profit | ₹274 cr | ₹262 cr | +4.48% | +1.05% |
| Operating margin (%) | 8.22% | 9.09% | — | — |
| Interest | ₹6 cr | ₹7 cr | -12.17% | +14.62% |
| Depreciation | ₹57 cr | ₹57 cr | +1.45% | +20.42% |
| Profit before tax | ₹212 cr | ₹200 cr | +6.10% | -3.63% |
| Tax | ₹44 cr | ₹50 cr | -11.36% | -18.90% |
| Net profit | ₹167 cr | ₹149 cr | +11.95% | +1.44% |
| EPS (₹) | ₹0.25 | ₹0.23 | +8.70% | -32.43% |
Operating margin of 8.22% 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 | +0.76% | +0.01% |
| Next session | +3.31% | — |
| 5 sessions | +9.15% | +7.77% |
| 15 sessions | +1.68% | — |
| 30 sessions | -6.12% | — |
Volume on the results session was 2.77× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Expansion
- Pathredi’s EV and ICE facility had a Q4 FY26 SOP and was in the ramping-up stage.
- Kharkhoda’s ICE facility was operational.
What to watch
- Whether operating margin holds above 8.22% after the second straight quarterly decline.
- Whether expense growth moderates from 36.74% to below revenue growth of 32.88% year on year.
- Whether the Pathredi facility’s reported ramp-up and Kharkhoda’s operational status are reflected in subsequent revenue and margin trends.