PI Industries profit falls 39.43% as margin and tax rate worsen
Costs grew faster than revenue year on year, while other income still contributed 24.63% of pre-tax profit.
Filed 19 May 2026, 21:06 IST · after market close · P I Industries Ltd (PIIND)
Key takeaways
- Consolidated Q4FY26 net profit fell 39.43% year on year to Rs 200.2 cr as operating margin narrowed 3.97 percentage points.
- Revenue rose 13.77% sequentially, but expenses grew 14.43% and the tax rate increased 19.16 percentage points, limiting profit conversion.
- The stock fell 7.15% on the first trading day after results, far beyond its 1.72% median absolute move after the past eight results.
Price around the results
Revenue recovered sequentially, but earnings did not
Consolidated revenue increased 13.77% sequentially to Rs 1,565.2 cr, but net profit declined 35.69% because other income fell 57.03% and the tax rate rose 19.16 percentage points. Year on year, revenue declined 12.42%, while net profit fell 39.43%, showing that the earnings drop was sharper than the sales contraction. Other income contributed 24.63% of pre-tax profit, making reported profit quality an important part of the quarter.
Costs drove the year-on-year margin erosion
Expenses fell 7.75% year on year against the 12.42% revenue decline, so costs grew faster relative to sales and operating margin narrowed 3.97 percentage points to 21.52%. Sequentially, expenses grew 14.43%, ahead of revenue growth of 13.77%, resulting in a further 0.45 percentage-point margin decline. Lower interest expense did not offset the pressure from higher depreciation and the weaker operating spread.
Margin remains above the reported peer median
PI Industries' 21.52% operating margin was 2.75 percentage points above the 18.77% median among 51 Commodities-sector peers that had reported the same quarter. However, operating margin has declined for two straight quarters, from 28.91% in Q2FY26 to 21.97% in Q3FY26 and 21.52% in Q4FY26. The sequential tax-rate increase also reversed some of the benefit from lower interest expense.
The market reaction was unusually severe for this stock
The stock fell 7.15% on the first trading day after the results, with an 8.43-times volume ratio, and was down 12.29% by the next trading day. That reaction was much larger than the stock's 1.72% median absolute move after its past eight results; seven of those eight reactions were negative. The decline extended to 15.31% after 30 trading days.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,565 cr | ₹1,376 cr | +13.77% | -12.42% |
| Other income | ₹74 cr | ₹172 cr | -57.03% | -0.94% |
| Expenses | ₹1,228 cr | ₹1,073 cr | +14.43% | -7.75% |
| Operating profit | ₹337 cr | ₹302 cr | +11.45% | -26.05% |
| Operating margin (%) | 21.52% | 21.97% | — | — |
| Interest | ₹4 cr | ₹6 cr | -40.32% | -53.16% |
| Depreciation | ₹107 cr | ₹105 cr | +1.23% | +18.29% |
| Profit before tax | ₹301 cr | ₹363 cr | -17.19% | -30.47% |
| Tax | ₹100 cr | ₹52 cr | +94.38% | -1.38% |
| Net profit | ₹200 cr | ₹311 cr | -35.69% | -39.43% |
| EPS (₹) | ₹13.20 | ₹20.52 | -35.67% | -39.42% |
Operating margin of 21.52% 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 | -7.15% | -7.32% |
| Next session | -12.29% | — |
| 5 sessions | -8.87% | -10.10% |
| 15 sessions | -10.35% | — |
| 30 sessions | -15.31% | — |
Volume on the results session was 8.43× its 20-day average.
What to watch
- Whether operating margin recovers from 21.52% after two consecutive quarterly declines.
- Whether revenue growth can outpace the 14.43% sequential expense growth.
- Whether the tax rate moves back from 33.38% and other income falls below its 24.63% share of pre-tax profit.