Page Industries' margin slips as costs outpace revenue growth
Standalone revenue rose +14.07% YoY, but operating margin fell 0.62 percentage points; sequentially, margin dropped 2.14 points.
Filed 21 May 2026, 13:54 IST · Page Industries Ltd (PAGEIND)
Key takeaways
- Standalone operating margin narrowed 0.62 percentage points YoY to 20.80% as expenses grew +14.97%, faster than revenue at +14.07%.
- Standalone net profit rose only +8.98% YoY to Rs 178.73 cr, below revenue growth as other income fell -14.70% and operating profit grew +10.76%.
- The stock gained +0.25% on the results day, versus a 2.37% median absolute move after its last eight results.
Price around the results
Revenue growth did not fully convert into profit
Page Industries reported standalone revenue growth of +14.07% YoY, but operating profit increased a slower +10.76%, showing weaker earnings conversion. Net profit rose +8.98% to Rs 178.73 cr, while sequentially revenue and net profit declined -9.67% and -5.70%, respectively.
Expense growth drove the margin squeeze
Expenses grew +14.97% YoY against revenue growth of +14.07%, narrowing operating margin by 0.62 percentage points. The sequential pressure was sharper: expenses fell -7.17%, less than the -9.67% decline in revenue, cutting margin by 2.14 percentage points. Other income contributed 7.22% of pre-tax profit, while the YoY tax-rate reduction was only 0.16 percentage points.
Margin remains above peers but below the recent peak
The 20.80% standalone operating margin was 5.99 percentage points above the 14.81% median for the 93 Consumer Discretionary peers that had reported the quarter. The margin was also below the 22.94% recorded in Q3FY26 and the 22.38% in Q1FY26, although it was above Q4FY25's 21.42% only in the longer comparison.
Initial stock response was smaller than its usual results move
The stock rose +0.25% on the results date, with a +0.43% opening gap and volume at 4.62 times the reference level. That initial move was modest against the 2.37% median absolute move after the last eight results, when the stock rose three times and fell five times. The stock was up +3.06% by the next session and +11.04% over 30 sessions, though the corporate-action overlap limits how cleanly the longer move can be attributed to the results.
Q4FY26 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,253 cr | ₹1,387 cr | -9.67% | +14.07% |
| Other income | ₹17 cr | ₹-23 cr | — | -14.70% |
| Expenses | ₹992 cr | ₹1,069 cr | -7.17% | +14.97% |
| Operating profit | ₹261 cr | ₹318 cr | -18.09% | +10.76% |
| Operating margin (%) | 20.80% | 22.94% | — | — |
| Interest | ₹12 cr | ₹13 cr | -6.68% | +0.42% |
| Depreciation | ₹28 cr | ₹27 cr | +5.65% | +12.79% |
| Profit before tax | ₹238 cr | ₹256 cr | -7.20% | +8.74% |
| Tax | ₹59 cr | ₹67 cr | -11.47% | +8.05% |
| Net profit | ₹179 cr | ₹190 cr | -5.70% | +8.98% |
| EPS (₹) | ₹160.24 | ₹169.93 | -5.70% | +8.98% |
Operating margin of 20.80% 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 | +0.25% | +0.27% |
| Next session | +3.06% | — |
| 5 sessions | -0.24% | +0.24% |
| 15 sessions | +0.89% | — |
| 30 sessions | +11.04% | — |
Volume on the results session was 4.62× its 20-day average.
What to watch
- Whether operating margin moves back above 20.80% after the 0.62-percentage-point YoY decline.
- Whether expense growth falls below revenue growth after +14.97% versus +14.07% YoY.
- The share of pre-tax profit coming from other income after its 7.22% contribution this quarter.