PWL swings to Rs 69.14 cr loss as operating margin collapses
Revenue fell 15.12% sequentially while expenses rose 5.20%, and the stock lost 9.58% by the next session.
Filed 27 May 2026, 17:36 IST · after market close · Physicswallah Ltd (PWL)
Key takeaways
- PWL swung to a consolidated net loss of Rs 69.14 cr as revenue fell 15.12% sequentially.
- Operating margin collapsed 18.71 percentage points to 3.13% because expenses rose 5.20% while revenue declined.
- The margin was 11.68 percentage points below the 14.81% median for 93 Consumer Discretionary peers.
Price around the results
Revenue contraction drove a sharp earnings reversal
Consolidated revenue fell 15.12% sequentially, while operating profit dropped 87.83%, turning the previous quarter's Rs 102.27 cr net profit into a Rs 69.14 cr loss. The earnings reversal was larger than the revenue decline because costs increased even as sales contracted. The results were filed after market close on 27 May 2026.
Higher costs, interest and depreciation compressed profitability
Expenses rose 5.20% sequentially despite the revenue decline, driving the 18.71-percentage-point fall in operating margin. Interest increased 12.73% and depreciation rose 7.68%, adding pressure below operating profit. A lower tax rate, down 14.63 percentage points, provided a tax benefit, while other income of Rs 35.83 cr was not enough to prevent a pre-tax loss; its share of pre-tax profit was -44.48%.
Margin fell below peers after a strong Q3
Operating margin had risen from 17.23% in Q2FY26 to 21.84% in Q3FY26 before dropping to 3.13% in Q4FY26, so the latest quarter reversed the preceding improvement rather than extending it. PWL's margin was 11.68 percentage points below the 14.81% median among 93 reported Consumer Discretionary peers, placing it seventh from the bottom.
Initial market reaction was sharply negative
The stock fell 4.71% on the reaction day and was down 9.58% by the next session, with reaction-day volume at 8.65 times the reference level. It later showed a 27.35% return by day 30, while the five-day relative return versus the benchmark was -6.01%.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹919 cr | ₹1,082 cr | -15.12% |
| Other income | ₹36 cr | ₹41 cr | -12.82% |
| Expenses | ₹890 cr | ₹846 cr | +5.20% |
| Operating profit | ₹29 cr | ₹236 cr | -87.83% |
| Operating margin (%) | 3.13% | 21.84% | — |
| Interest | ₹23 cr | ₹21 cr | +12.73% |
| Depreciation | ₹122 cr | ₹113 cr | +7.68% |
| Profit before tax | ₹-81 cr | ₹144 cr | — |
| Tax | ₹-11 cr | ₹41 cr | — |
| Net profit | ₹-69 cr | ₹102 cr | — |
| EPS (₹) | ₹-0.26 | ₹0.37 | — |
Operating margin of 3.13% 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 | -4.71% | -3.20% |
| Next session | -9.58% | — |
| 5 sessions | -8.27% | -6.01% |
| 15 sessions | +9.48% | — |
| 30 sessions | +27.35% | — |
Volume on the results session was 8.65× its 20-day average.
What to watch
- Whether revenue recovers from Rs 918.8 cr after the 15.12% sequential decline.
- Whether operating margin moves back above 3.13% and narrows the gap with the 14.81% peer median.
- Whether depreciation below Rs 121.88 cr and interest below Rs 23.29 cr reduce pressure on pre-tax profit.