SCI profit rose +118.54% YoY as operating margin widened 12.92 points
The consolidated margin slipped 1.64 points QoQ, while other income contributed 33.18% of pre-tax profit and the tax rate fell to 2.64%.
Filed 08 May 2026, 21:15 IST · after market close · Shipping Corporation of India Ltd (SCI)
Key takeaways
- Consolidated net profit rose +118.54% YoY, helped by revenue growth of +14.19% and expenses falling -6.17%.
- Operating margin widened 12.92 percentage points YoY but narrowed 1.64 percentage points QoQ as revenue fell -6.11% while expenses declined only -3.45%.
- Other income contributed 33.18% of pre-tax profit, while the 2.64% tax rate also supported reported earnings.
Price around the results
Year-on-year profit growth came from operating leverage
SCI's consolidated revenue grew +14.19% YoY, while expenses fell -6.17%, lifting operating profit by +67.81%. That combination widened operating margin by 12.92 percentage points to 40.44%. The margin was 9.29 percentage points above the 31.15% median for 12 reported Services peers.
Sequential momentum weakened despite lower costs
Revenue declined -6.11% QoQ, while expenses fell only -3.45%, so costs grew faster than revenue on a sequential basis and operating margin narrowed 1.64 percentage points. Operating margin had risen from 30.36% in Q2FY26 to 42.08% in Q3FY26 before easing to 40.44% in Q4FY26. Management said coastal freight rates increased 10% YoY, while the presentation cited soft freight markets, the absence of a traditional peak season and capacity redeployments as pressures on Exim revenue and profitability.
Reported profit included a sizeable non-operating contribution
Other income rose +56.34% YoY and accounted for 33.18% of pre-tax profit, making it a material part of reported earnings. The tax rate was 2.64%, down 2.50 percentage points QoQ but up 10.69 percentage points from the negative rate in Q4FY25. Interest expense increased +21.41% YoY, while depreciation rose +18.29%.
Management outlined fleet and network expansion
Management said it was making capital decisions to expand tonnage and its geographical footprint, and planned to induct vessels for rising domestic and Exim trade requirements. The presentation said SCI had inducted two VLGCs, Sahyadri and Shivalik, for the Persian Gulf–India route, while also planning wider port coverage including Goa, Mangalore and Colombo. Management said it expected the Indian offshore market to remain firm in the near to medium term and that global offshore shipping was strengthening with offshore oil, gas and renewable-energy activity.
The initial stock move was modest versus SCI's history
The stock gained +0.47% on the first reaction day, after opening -0.59%, and was down -4.04% on the following day. Its 15-day move was -10.72%, compared with a median absolute post-results move of 6.14% across the last eight results; those reactions were evenly split between four rises and four falls. The results were filed after market close.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,513 cr | ₹1,612 cr | -6.11% | +14.19% |
| Other income | ₹138 cr | ₹69 cr | +101.18% | +56.34% |
| Expenses | ₹901 cr | ₹934 cr | -3.45% | -6.17% |
| Operating profit | ₹612 cr | ₹678 cr | -9.77% | +67.81% |
| Operating margin (%) | 40.44% | 42.08% | — | — |
| Interest | ₹47 cr | ₹48 cr | -2.62% | +21.41% |
| Depreciation | ₹287 cr | ₹271 cr | +5.80% | +18.29% |
| Profit before tax | ₹416 cr | ₹427 cr | -2.66% | +142.55% |
| Tax | ₹11 cr | ₹22 cr | -49.95% | — |
| Net profit | ₹405 cr | ₹405 cr | -0.09% | +118.54% |
| EPS (₹) | ₹8.69 | ₹8.69 | +0.00% | +118.89% |
Operating margin of 40.44% compares with a Services sector median of 31.15% across 12 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +0.47% | +1.96% |
| Next session | -4.04% | — |
| 5 sessions | +1.67% | +3.84% |
| 15 sessions | -10.72% | — |
| 30 sessions | -5.44% | — |
Volume on the results session was 2.01× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- Coastal freight rates increased 10% year on year, indicating strong domestic demand and pricing power.
Guidance & outlook
- SCI is confident in sustained coastal-business growth and is making capital decisions to expand tonnage and its geographical footprint.
- SCI expects the Indian offshore market to remain firm in the near to medium term.
- SCI expects global offshore shipping to strengthen, supported by offshore oil, gas and renewable-energy activity.
Expansion
- SCI plans to induct suitable tonnage to meet rising domestic and EXIM trade requirements.
- SCI plans to expand port coverage to Goa, Mangalore and Colombo and is evaluating extension to Kolkata or Haldia.
- SCI inducted two VLGCs, Sahyadri and Shivalik, into its fleet for deployment on the Persian Gulf–India route.
- SCI and CPSE partners plan to jointly acquire, own, operate and manage vessels for international and coastal transport.
- SCI is making capital decisions to expand its tonnage and geographical footprint across coastal and EXIM sectors.
New initiatives
- SCI signed an MoU with CPSEs to build and operate a fleet supporting self-reliance, shipping capacity and energy security.
- SCI maintained India-Europe service continuity by rerouting vessels around the Cape of Good Hope.
- SCI uses a consortium strategy and timely vessel chartering for the India-Europe sector.
Problems & risks
- Supply-chain disruption from Strait of Hormuz closure and regional refinery attacks created a refined-products shortage.
- Exim revenue and profitability declined because of soft freight markets, no traditional peak season and capacity redeployments.
- Global rate indexes were volatile, requiring disciplined capacity management to protect margins and long-term financial health.
What to watch
- Whether operating margin recovers from 40.44% after the 1.64 percentage-point QoQ decline.
- Whether other income's 33.18% share of pre-tax profit falls as operating earnings remain the main profit driver.
- Whether coastal freight rates sustain the 10% YoY increase cited by management.