Nava's Q1 profit falls 16.61% as costs outpace revenue
A sharp QoQ cost reduction lifted operating margin, but the recovery remained below last year's Q1 level and tax was higher YoY.
Filed 14 Aug 2026, 13:00 IST · Nava Ltd (NAVA)
Key takeaways
- Consolidated net profit fell 16.61% YoY to Rs 332.82 cr even as revenue grew 1.56%, because expenses rose 13.29%.
- Operating margin recovered 10.97 percentage points QoQ to 43.45% as revenue grew 6.03% and expenses fell 11.19%.
- Nava's 43.45% operating margin was 12.36 percentage points above the 31.09% Utilities median across 26 reported peers, though other income contributed 11.88% of PBT.
Price around the results
QoQ profit rebound does not erase the YoY decline
Nava's consolidated revenue grew 6.03% QoQ, while expenses fell 11.19%, lifting operating profit by 41.84%. Net profit nevertheless declined 16.61% YoY because the 1.56% revenue increase was outweighed by a 13.29% rise in expenses. The sequential improvement was also helped by a 27.51 percentage-point fall in the tax rate and a 64.83% reduction in interest expense.
Margin recovery follows a cost-led reset
Operating margin expanded 10.97 percentage points QoQ as costs fell despite higher revenue. On a YoY basis, margin narrowed 5.86 percentage points because expenses grew faster than revenue. Depreciation rose 12.03% YoY and interest expense increased 90.08%, while other income rose 44.78% and accounted for 11.88% of PBT, making it a material part of reported profit.
Q1 margin rebounds, but remains below the prior-year peak
The margin path has been uneven: it moved from 49.31% in Q1FY26 to 32.71% in Q2FY26, recovered to 44.66% in Q3FY26, fell to 32.48% in Q4FY26, and then returned to 43.45% in Q1FY27. This is a QoQ recovery rather than a return to the 49.31% level seen a year earlier. Nava still stood 12.36 percentage points above the 31.09% median operating margin of 26 Utilities peers that had reported.
Past results have usually been followed by declines
Across the eight previous result reactions, the stock fell seven times and rose once, with a median absolute move of 4.78%. The six listed moves ranged from -2.82% to -10.67%, putting the historical pattern firmly on the downside after results.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,212 cr | ₹1,143 cr | +6.03% | +1.56% |
| Other income | ₹57 cr | ₹52 cr | +9.58% | +44.78% |
| Expenses | ₹685 cr | ₹772 cr | -11.19% | +13.29% |
| Operating profit | ₹527 cr | ₹371 cr | +41.84% | -10.51% |
| Operating margin (%) | 43.45% | 32.48% | — | — |
| Interest | ₹2 cr | ₹7 cr | -64.83% | +90.08% |
| Depreciation | ₹101 cr | ₹91 cr | +11.62% | +12.03% |
| Profit before tax | ₹480 cr | ₹325 cr | +47.43% | -10.50% |
| Tax | ₹146 cr | ₹189 cr | -22.46% | +7.24% |
| Net profit | ₹333 cr | ₹136 cr | +144.31% | -16.61% |
| EPS (₹) | ₹9.80 | ₹4.49 | +118.26% | -10.01% |
Operating margin of 43.45% compares with a Utilities sector median of 31.09% across 26 peers that have reported Q1FY27.
What to watch
- Whether operating margin holds above 43.45% after the 10.97 percentage-point QoQ recovery.
- Whether expenses continue to grow slower than revenue after rising 13.29% YoY against revenue growth of 1.56%.
- Whether the tax rate remains below the current 30.52% after reaching 58.03% in Q4FY26.