Tata Investment profit falls 15.33% QoQ as revenue drops 30.97%
Year-on-year profit growth remained high, but margin weakened for a second straight quarter and other income supplied 51.17% of pre-tax profit.
Filed 22 Apr 2026, 17:31 IST · after market close · Tata Investment Corporation Ltd (TATAINVEST)
Key takeaways
- Consolidated net profit rose 69.22% year on year but fell 15.33% sequentially as revenue dropped 30.97% from Q3FY26.
- Operating margin expanded 29.03 percentage points year on year but narrowed 8.29 percentage points sequentially as expenses grew 1.37% while revenue fell 30.97%.
- Other income contributed 51.17% of consolidated profit before tax, while a -10.18% tax rate also lifted reported net profit.
Price around the results
Sequential slowdown reverses part of the year-on-year gain
Consolidated revenue increased 143.34% year on year, with expenses rising only 14.93%, driving a 300.41% increase in operating profit. Sequentially, revenue fell 30.97% while expenses still rose 1.37%, pushing operating profit down 37.93% and net profit down 15.33%. The quarter therefore shows a sharp year-on-year improvement but weaker momentum from Q3FY26.
Margin remains above peers but has declined for two quarters
Operating margin expanded 29.03 percentage points year on year but narrowed 8.29 percentage points sequentially because costs grew while revenue contracted. This was the second consecutive quarterly decline, from 93.27% in Q2FY26 to 82.30% in Q3FY26 and 74.01% in Q4FY26. The margin was still 14.60 percentage points above the 59.41% median for 52 Financial Services peers that had reported.
Other income and tax credit make up a large part of profit
Other income accounted for 51.17% of consolidated profit before tax, limiting the extent to which reported profit reflects operating earnings alone. The tax rate moved down 16.88 percentage points sequentially to -10.18%, so the tax credit also flattered net profit. Interest rose 580.00% sequentially, although the reported amount was Rs 0.34 cr.
Initial market rise gave way to a sharper decline
The stock rose 1.27% on the results day, then was down 0.65% after five sessions and 7.28% after 30 sessions. Its initial move was smaller than the 2.85% median absolute move after its last eight results, when it rose twice and fell six times. The later decline was therefore larger than its usual post-results move.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹40 cr | ₹58 cr | -30.97% | +143.34% |
| Other income | ₹30 cr | ₹34 cr | -13.18% | +0.82% |
| Expenses | ₹10 cr | ₹10 cr | +1.37% | +14.93% |
| Operating profit | ₹30 cr | ₹48 cr | -37.93% | +300.41% |
| Operating margin (%) | 74.01% | 82.30% | — | — |
| Interest | ₹0 cr | ₹0 cr | +580.00% | +466.67% |
| Depreciation | ₹1 cr | ₹1 cr | +0.00% | +4.35% |
| Profit before tax | ₹58 cr | ₹81 cr | -28.30% | +61.77% |
| Tax | ₹-6 cr | ₹5 cr | — | -208.90% |
| Net profit | ₹64 cr | ₹75 cr | -15.33% | +69.22% |
| EPS (₹) | ₹1.26 | ₹1.49 | -15.44% | -83.11% |
Operating margin of 74.01% compares with a Financial Services sector median of 59.41% across 52 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +1.27% | +2.07% |
| Next session | -0.75% | — |
| 5 sessions | -0.65% | +0.97% |
| 15 sessions | -7.08% | — |
| 30 sessions | -7.28% | — |
Volume on the results session was 3.14× its 20-day average.
What to watch
- Whether operating margin stabilises after falling to 74.01% from 82.30% sequentially.
- Whether other income remains below or above its 51.17% share of profit before tax.
- Whether the tax rate moves back from -10.18% toward a positive rate.