OFSS margin rebounds to 51.15% as Q4 revenue grows 20.33%
Expenses fell 11.99% sequentially while revenue rose 5.05%, driving a sharp profit recovery despite a higher year-on-year tax rate.
Filed 22 Apr 2026, 20:47 IST · after market close · Oracle Financial Services Software Ltd (OFSS)
Key takeaways
- Consolidated operating margin rose 9.46 percentage points sequentially to 51.15%, reversing two quarters of decline.
- Revenue grew 20.33% year on year while expenses rose 6.02%, lifting operating profit growth to 38.13%.
- The shares gained 8.18% on the first trading day and 19.69% in five days, far above the 2.22% median move after the last eight results.
Price around the results
Q4 growth widened the operating spread
Oracle Financial Services Software reported consolidated revenue growth of 20.33% year on year, while expenses increased 6.02%. That gap lifted operating profit by 38.13% and net profit by 30.72% to Rs 841.7 cr. Other income contributed 6.37% of pre-tax profit, so earnings were driven mainly by operations.
Sequential margin rebound followed lower costs
Revenue rose 5.05% sequentially, but expenses fell 11.99%, producing a 9.46 percentage-point expansion in operating margin. The margin reached 51.15% after declining from 45.69% in Q1FY26 to 42.22% in Q2FY26 and 41.69% in Q3FY26. The company’s margin was 31.46 percentage points above the 19-peer Information Technology median of 19.69%.
Tax movement shaped the profit comparison
The sequential tax rate fell 4.05 percentage points to 24.85%, supporting the 38.07% rise in net profit from Q3FY26. Year on year, however, the tax rate increased 1.60 percentage points, which held net profit growth below the 33.50% increase in pre-tax profit. Interest remained a small factor, with the year-on-year change reported at 15.05%.
Initial market reaction was unusually large
The shares rose 8.18% on the first trading day after the results and 19.69% by the fifth day. That was well above the 2.22% median absolute move across the company’s last eight results. The reaction also coincided with a corporate action, so the entire move cannot be attributed to the quarterly numbers alone.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹2,065 cr | ₹1,966 cr | +5.05% | +20.33% |
| Other income | ₹71 cr | ₹61 cr | +17.85% | -12.94% |
| Expenses | ₹1,009 cr | ₹1,146 cr | -11.99% | +6.02% |
| Operating profit | ₹1,056 cr | ₹820 cr | +28.88% | +38.13% |
| Operating margin (%) | 51.15% | 41.69% | — | — |
| Interest | ₹-8 cr | ₹7 cr | — | +15.05% |
| Depreciation | ₹15 cr | ₹16 cr | -2.53% | -8.88% |
| Profit before tax | ₹1,120 cr | ₹857 cr | +30.64% | +33.50% |
| Tax | ₹278 cr | ₹248 cr | +12.35% | +42.70% |
| Net profit | ₹842 cr | ₹610 cr | +38.07% | +30.72% |
| EPS (₹) | ₹96.72 | ₹70.08 | +38.01% | +30.44% |
Operating margin of 51.15% compares with a Information Technology sector median of 19.69% across 19 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +8.18% | +9.02% |
| Next session | +10.12% | — |
| 5 sessions | +19.69% | +21.25% |
| 15 sessions | +10.93% | — |
| 30 sessions | +20.05% | — |
Volume on the results session was 11.74× its 20-day average.
What to watch
- Whether consolidated operating margin holds above 51.15% after the Q4 rebound.
- Whether expenses remain below revenue growth after falling 11.99% sequentially.
- Whether the tax rate stays near 24.85% after rising 1.60 percentage points year on year.