TBO Tek's 82.54% revenue growth produced just 2.02% profit growth
Costs, interest and depreciation absorbed much of the operating gain, while the 12.94% margin remained 1.87 percentage points below the peer median.
Filed 13 Jul 2026, 17:57 IST · after market close · TBO Tek Ltd (TBOTEK)
Key takeaways
- Consolidated revenue rose 82.54% year on year, but net profit increased only 2.02% as expenses grew faster and financing costs surged.
- Operating margin narrowed 1.57 percentage points year on year to 12.94%, though it recovered 0.14 percentage points sequentially.
- Other income contributed 17.36% of pre-tax profit, while the stock's initial 0.36% reaction was muted against its 4.3% median post-results move.
Price around the results
Revenue scaled up, but earnings barely moved
TBO Tek reported consolidated revenue of Rs 814.36 cr in Q4FY26, up 82.54% year on year and 3.83% sequentially. Yet net profit rose only 2.02% year on year to Rs 60.10 cr, despite operating profit increasing 62.76%. The gap reflects a much higher interest bill, depreciation and a lower contribution from other income.
Cost growth cut the year-on-year margin
Expenses grew 85.89% year on year, faster than revenue, reducing operating margin by 1.57 percentage points to 12.94%. Interest expense rose 169.94% and depreciation increased 115.33%, further limiting the conversion of operating profit into pre-tax earnings. Sequentially, revenue grew 3.83% while expenses rose 3.67%, allowing margin to improve 0.14 percentage points.
Margin recovered from Q3 but remains below recent levels
Operating margin fell from 15.52% in Q2FY26 to 12.80% in Q3FY26 before edging up to 12.94% in Q4FY26. It therefore stopped declining sequentially, but remains below the 14.51% recorded in Q4FY25. The company's margin was also 1.87 percentage points below the 14.81% median for the 93 Consumer Discretionary peers that had reported.
Initial market response was quieter than TBO Tek's history
The stock gained 0.36% on the measured reaction day and was up 0.02% after five sessions. That was muted against a 4.3% median absolute move across the eight recent results reactions; the stock rose after three and fell after five of those results. The Q4FY26 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 | ₹814 cr | ₹784 cr | +3.83% | +82.54% |
| Other income | ₹13 cr | ₹7 cr | +82.19% | -49.65% |
| Expenses | ₹709 cr | ₹684 cr | +3.67% | +85.89% |
| Operating profit | ₹105 cr | ₹100 cr | +4.94% | +62.76% |
| Operating margin (%) | 12.94% | 12.80% | — | — |
| Interest | ₹15 cr | ₹15 cr | -2.28% | +169.94% |
| Depreciation | ₹30 cr | ₹26 cr | +13.25% | +115.33% |
| Profit before tax | ₹74 cr | ₹66 cr | +11.45% | +3.99% |
| Tax | ₹14 cr | ₹12 cr | +9.35% | +13.75% |
| Net profit | ₹60 cr | ₹54 cr | +11.94% | +2.02% |
| EPS (₹) | ₹5.62 | ₹5.03 | +11.73% | +1.44% |
Operating margin of 12.94% 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 | +0.36% | +1.86% |
| Next session | +0.35% | — |
| 5 sessions | +0.02% | +2.28% |
| 15 sessions | +21.62% | — |
| 30 sessions | +22.78% | — |
Volume on the results session was 2.64× its 20-day average.
What to watch
- Whether operating margin can recover from 12.94% toward the 14.51% recorded in Q4FY25.
- Whether interest expense moves below Rs 14.55 cr after rising 169.94% year on year.
- Whether other income's 17.36% share of pre-tax profit declines.