Nava Q4 profit falls 55.02% as tax rate jumps to 58.03%
Costs grew faster than revenue, cutting operating margin by 5.00 percentage points YoY, while other income contributed 15.98% of pre-tax profit.
Filed 15 May 2026, 13:58 IST · Nava Ltd (NAVA)
Key takeaways
- Consolidated net profit fell 55.02% YoY as the tax rate rose to 58.03% from 6.52%.
- Operating margin narrowed 5.00 percentage points YoY because expenses grew 21.22% against revenue growth of 12.24%.
- The stock fell 10.67% on results day, versus a 4.72% median absolute move after its last eight results.
Price around the results
Tax spike erased a largely stable pre-tax result
Nava’s consolidated profit before tax was almost unchanged YoY, rising 0.32%, but net profit fell 55.02% as the tax rate increased by 51.51 percentage points to 58.03%. Other income contributed 15.98% of pre-tax profit, so reported earnings also had a meaningful non-operating component. Sequentially, net profit fell 58.17% as the tax rate rose 40.26 percentage points and interest expense increased 831.58%.
Q4 cost growth outpaced revenue growth
Revenue grew 12.24% YoY, but expenses rose 21.22%, reducing operating profit by 2.74% and narrowing operating margin by 5.00 percentage points to 32.48%. The sequential squeeze was sharper: revenue rose 15.31%, while expenses increased 40.68%, cutting operating margin by 12.18 percentage points. Other income also fell 26.17% sequentially.
Margin ended below the Utilities peer median
Operating margin moved from 49.31% in Q1FY26 to 32.71% in Q2, recovered to 44.66% in Q3 and fell back to 32.48% in Q4, showing volatility rather than a continuous decline. Nava’s margin was 2.71 percentage points below the 35.19% median among 17 Utilities peers that had reported, placing it seventh from the bottom.
Results-day fall was unusually large for Nava
The stock fell 10.67% on the results day and was down 14.75% by the next session. That reaction was larger than Nava’s 4.72% median absolute move after its last eight results, during which the stock rose twice and fell six times.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,143 cr | ₹991 cr | +15.31% | +12.24% |
| Other income | ₹52 cr | ₹70 cr | -26.17% | +38.46% |
| Expenses | ₹772 cr | ₹549 cr | +40.68% | +21.22% |
| Operating profit | ₹371 cr | ₹443 cr | -16.13% | -2.74% |
| Operating margin (%) | 32.48% | 44.66% | — | — |
| Interest | ₹7 cr | ₹1 cr | +831.58% | +49.37% |
| Depreciation | ₹91 cr | ₹116 cr | -21.52% | +0.72% |
| Profit before tax | ₹325 cr | ₹397 cr | -17.97% | +0.32% |
| Tax | ₹189 cr | ₹70 cr | +167.95% | +793.09% |
| Net profit | ₹136 cr | ₹326 cr | -58.17% | -55.02% |
| EPS (₹) | ₹4.49 | ₹7.84 | -42.73% | -44.57% |
Operating margin of 32.48% compares with a Utilities sector median of 35.19% across 17 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -10.67% | -10.48% |
| Next session | -14.75% | — |
| 5 sessions | -13.44% | -13.56% |
| 15 sessions | -16.69% | — |
| 30 sessions | -13.81% | — |
Volume on the results session was 1.59× its 20-day average.
What to watch
- Whether the consolidated tax rate moves down from 58.03% next quarter.
- Whether operating margin recovers from 32.48% after the 12.18-percentage-point sequential decline.
- Whether expenses grow more slowly than revenue after rising 40.68% sequentially against 15.31% revenue growth.