47.29% revenue growth masked a margin squeeze and 291.67% interest surge
Faster cost growth and higher financing charges limited profit conversion, while the five-session stock reaction was larger than its usual post-results move.
Filed 11 May 2026, 20:07 IST · after market close · SPR Auto Technologies Ltd (SHRIPISTON)
Key takeaways
- Consolidated revenue grew 47.29% YoY, but expenses grew 52.68%, cutting operating margin by 2.88 percentage points to 18.40%.
- Net profit rose only 4.99% YoY as interest increased 291.67% and other income accounted for 11.15% of pre-tax profit.
- The stock fell 7.13% five sessions after the results, versus a 3.29% median absolute move across its eight prior result reactions.
Price around the results
Revenue scaled up, but profit conversion weakened
Q4FY26 consolidated revenue grew 47.29% YoY and 42.28% QoQ, lifting operating profit 27.37% YoY and 30.17% QoQ. Expenses grew faster than revenue in both comparisons, so operating margin narrowed by 2.88 percentage points YoY and 1.71 percentage points QoQ. At 18.40%, the margin was still 3.59 percentage points above the 14.81% median for 93 Consumer Discretionary peers that had reported.
Interest and depreciation absorbed the operating gain
Interest expense rose 291.67% YoY and 181.20% QoQ, while depreciation increased 82.75% YoY and 57.62% QoQ, weighing on pre-tax profit despite the higher operating profit. The tax rate fell by 1.75 percentage points YoY and 2.83 percentage points QoQ, which cushioned net profit. Other income contributed 11.15% of pre-tax profit, so reported profit was not entirely operating-led.
The margin has now fallen for two straight quarters
Operating margin rose to 20.39% in Q2FY26, slipped to 20.11% in Q3FY26 and fell again to 18.40% in Q4FY26. The latest level is also 2.88 percentage points below Q4FY25, making the year-on-year comparison less favourable despite the 47.29% revenue increase. Pre-tax profit rose only 2.60% YoY, far below operating-profit growth of 27.37%.
Management links expansion to capacity and automation
Management said the acquired businesses have five manufacturing facilities across Chakan, Pune and Chennai, and that capacity had increased 23.70%; it also said the company is implementing low-cost automation and streamlining its supply chain. The company said demand recovery in passenger vehicles and two-wheelers, premiumisation and stronger auto-component and export activity were supporting the industry, while competitive pricing pressure persisted. The presentation flags that the Antolin acquisition increased debt after the company issued Rs 10,000 million of non-convertible debentures in FY26.
The five-session decline was unusual for this stock
After the results, the stock fell 2.29% on day zero and 7.13% by the fifth session, with volume at 1.49 times the reference level on day zero. The five-session fall was larger than the stock's 3.29% median absolute move after its eight prior results, when it rose six times and fell twice.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,456 cr | ₹1,023 cr | +42.28% | +47.29% |
| Other income | ₹23 cr | ₹8 cr | +191.14% | -16.12% |
| Expenses | ₹1,188 cr | ₹817 cr | +45.33% | +52.68% |
| Operating profit | ₹268 cr | ₹206 cr | +30.17% | +27.37% |
| Operating margin (%) | 18.40% | 20.11% | — | — |
| Interest | ₹33 cr | ₹12 cr | +181.20% | +291.67% |
| Depreciation | ₹52 cr | ₹33 cr | +57.62% | +82.75% |
| Profit before tax | ₹206 cr | ₹169 cr | +21.93% | +2.60% |
| Tax | ₹47 cr | ₹44 cr | +8.51% | -4.70% |
| Net profit | ₹159 cr | ₹126 cr | +26.57% | +4.99% |
| EPS (₹) | ₹35.47 | ₹27.93 | +27.00% | +6.61% |
Operating margin of 18.40% 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 | -2.29% | -0.46% |
| Next session | -4.78% | — |
| 5 sessions | -7.13% | -6.30% |
| 15 sessions | -2.84% | — |
| 30 sessions | +9.96% | — |
Volume on the results session was 1.49× 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.
Guidance & outlook
- The Indian automotive industry is witnessing steady demand recovery, especially in passenger vehicles and two-wheelers.
- Premiumisation is driving consumers toward SUVs, higher variants and feature-rich vehicles, helping automakers improve margins.
- Auto component and export segments continue to strengthen as Indian manufacturers benefit from supply-chain diversification and localisation.
Expansion
- The acquired businesses have five manufacturing facilities across Chakan, Pune and Chennai.
- The company increased capacities by 23.7%.
New initiatives
- The company is implementing affordable low-cost automation.
- The company is streamlining its supply chain.
Problems & risks
- Competitive pricing pressure persists despite premiumisation helping automakers improve margins.
- The Antolin acquisition increased debt after the company issued Rs. 10,000 million of non-convertible debentures.
What to watch
- Whether operating margin holds above 18.40% after two consecutive quarterly declines.
- Whether interest expense moderates from 32.9 after rising 181.20% QoQ.
- Whether expenses continue to grow faster than revenue after rising 52.68% YoY versus revenue growth of 47.29%.