Seshaasai's Q4 margin trails sector median by 30.06 percentage points
Management cited forex and imported input costs, even as SIM manufacturing started contributing to revenue and the company added 19 IoT accounts.
Filed 30 Jul 2026, 16:24 IST · after market close · Seshaasai Technologies Ltd (STYL)
Key takeaways
- Consolidated Q4FY26 operating profit was Rs 118.43 cr on revenue of Rs 404.18 cr, with an operating margin of 29.30%.
- The company said forex and imported input costs pressured Q4FY26 operations, while SIM manufacturing began contributing to revenue.
- Seshaasai's 29.30% operating margin was 30.06 percentage points below the 59.36% median for 53 reported Financial Services peers.
Price around the results
Q4 profit came with a 29.30% operating margin
Seshaasai reported consolidated Q4FY26 revenue of Rs 404.18 cr and operating profit of Rs 118.43 cr. Profit before tax was Rs 111.77 cr and net profit was Rs 81.79 cr, with EPS of Rs 5.06. Other income was Rs 6.00 cr and the reported tax rate was 26.83%.
Imported inputs and forex were the stated cost pressures
Management said the company faced forex and imported input cost pressures in Q4FY26. The quarter's operating margin was 29.30%, while depreciation was Rs 9.75 cr and interest was Rs 2.91 cr. There is no sequential or year-on-year driver block here to establish how much these costs changed versus the prior period.
Margin was well below the reported peer median
Among 53 Financial Services peers that had reported the same quarter, Seshaasai's 29.30% operating margin was 30.06 percentage points below the 59.36% median. It ranked ninth from the bottom on this measure. No quarter-on-quarter or year-on-year comparison is available here, so the direction of margin across quarters cannot be assessed.
New facilities and SIM capacity broaden the operating base
Management said it added a 40,000 sq. ft. facility for its IoT and CFS verticals, and increased capacity for RFID tag offerings. The company said it added 19 IoT accounts in Q4FY26, won one multi-year tender and onboarded two transit service aggregators. Management also said SIM manufacturing had scaled to customer requirements and started contributing to revenue; the Bengaluru facility received GSMA SAS-UP certification for SIM/eSIM manufacturing and related data and PKI work.
Results were filed after market close
The consolidated results were filed after market close on 30 July 2026. A post-results stock reaction is therefore not covered here.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 |
|---|---|
| Revenue | ₹404 cr |
| Other income | ₹6 cr |
| Expenses | ₹286 cr |
| Operating profit | ₹118 cr |
| Operating margin (%) | 29.30% |
| Interest | ₹3 cr |
| Depreciation | ₹10 cr |
| Profit before tax | ₹112 cr |
| Tax | ₹30 cr |
| Net profit | ₹82 cr |
| EPS (₹) | ₹5.06 |
Operating margin of 29.30% compares with a Financial Services sector median of 59.36% across 53 peers that have reported Q4FY26.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- The company added 19 new IoT accounts in Q4 and increased capacity for RFID tag offerings.
- SIM card manufacturing scaled up to handle customer requirements and began contributing to revenue.
Expansion
- The company added a 40,000 sq. ft. facility for IoT and CFS verticals.
New orders
- The company won one multi-year tender in Q4 FY26.
- The company rolled out a project for one of the largest Indian retailers across its major fashion brands.
- The company onboarded two new transit service aggregators.
New initiatives
- The Bengaluru facility received GSMA SAS-UP certification for SIM/eSIM manufacturing, personalisation, data generation and PKI certificate handling.
- The company granted two patents in Q4 FY26, for a metal card and an optimized QR code.
- The company filed six new patents in FY26.
- The antenna design and simulation lab is functional at the Bengaluru R&D setup.
- The chip bonding setup is scaling up to support niche domestic innovations.
Problems & risks
- The company faced forex and imported input cost pressures in Q4 FY26.
What to watch
- Whether operating margin holds near 29.30% while forex and imported input costs remain a stated pressure.
- Whether the 19 new IoT accounts add to revenue alongside the expanded RFID capacity.
- Whether the 40,000 sq. ft. IoT and CFS facility and SIM manufacturing make a larger contribution to revenue.