Nuvoco's margin rebounds, but higher tax cuts Q4 profit 14.94% YoY
Revenue grew 8.69% year on year, but expenses grew faster and other income turned negative, keeping operating margin below the sector median.
Filed 14 Apr 2026, 20:44 IST · after market close · Nuvoco Vistas Corporation Ltd (NUVOCO)
Key takeaways
- Consolidated net profit fell 14.94% year on year as the tax rate rose 13.6 percentage points to 39.62%.
- Operating margin recovered 3.57 percentage points sequentially after a three-quarter slide, but remained 0.36 percentage points below Q4FY25.
- The stock's initial 0.57% decline was within its 2.33% median absolute post-results move, despite an 11.85-times volume spike.
Price around the results
Q4 profit growth was sequential, not annual
Consolidated revenue rose 8.69% year on year, while operating profit grew 6.52%, as expenses increased faster than revenue. That limited operating-margin expansion and left net profit 14.94% lower because the tax rate climbed 13.6 percentage points to 39.62%. Sequentially, revenue grew 22.41% and operating profit 53.13%, helped by expenses growing more slowly at 17.33%.
Margin recovery followed a three-quarter decline
Operating margin improved 3.57 percentage points from Q3FY26, ending a slide from 18.13% in Q4FY25 to 14.20% in Q3FY26. Even after the rebound to 17.77%, it was 1.00 percentage point below the 18.77% median for 51 reported Commodities-sector peers. Lower interest expense, down 17.94% sequentially and 28.06% year on year, supported pre-tax profit.
Negative other income weakened profit quality
Other income was negative at Rs 45.51 cr and represented -19.52% of pre-tax profit, compared with positive other income in the two comparison quarters. This was a direct drag on reported pre-tax profit, while the higher tax rate was the larger reason net profit declined year on year despite pre-tax profit rising 4.21%.
The first market move was ordinary for Nuvoco
After the results, the stock opened with a 3.03% gap but ended the session down 0.57%; it was down 0.98% after five sessions. That initial move was modest against the company's history of five declines and three gains across eight results, with a median absolute move of 2.33%. Trading volume was 11.85 times normal on the first session.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹3,307 cr | ₹2,701 cr | +22.41% | +8.69% |
| Other income | ₹-46 cr | ₹3 cr | — | — |
| Expenses | ₹2,719 cr | ₹2,318 cr | +17.33% | +9.18% |
| Operating profit | ₹588 cr | ₹384 cr | +53.13% | +6.52% |
| Operating margin (%) | 17.77% | 14.20% | — | — |
| Interest | ₹81 cr | ₹99 cr | -17.94% | -28.06% |
| Depreciation | ₹228 cr | ₹223 cr | +2.07% | +3.77% |
| Profit before tax | ₹233 cr | ₹65 cr | +261.33% | +4.21% |
| Tax | ₹92 cr | ₹15 cr | +509.03% | +58.66% |
| Net profit | ₹141 cr | ₹49 cr | +185.21% | -14.94% |
| EPS (₹) | ₹3.94 | ₹1.38 | +185.51% | -14.90% |
Operating margin of 17.77% 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 | -0.57% | -2.20% |
| Next session | +1.17% | — |
| 5 sessions | -0.98% | -3.22% |
| 15 sessions | +9.70% | — |
| 30 sessions | +13.68% | — |
Volume on the results session was 11.85× its 20-day average.
What to watch
- Whether operating margin holds above 17.77% after the Q4FY26 rebound.
- Whether the tax rate moves back from 39.62% in the next reported quarter.
- Whether interest expense stays below Rs 80.95 cr while other income remains above negative Rs 45.51 cr.