Tube Investments' profit falls as costs outpace 17.07% revenue growth
The tax rate rose 3.73 percentage points year on year, while operating margin fell for a second straight quarter to 8.82%.
Filed 14 Aug 2026, 14:21 IST · Tube Investments of India Ltd (TIINDIA)
Key takeaways
- Consolidated revenue grew 17.07% year on year, but expenses grew faster at 18.99%, narrowing operating margin by 1.47 percentage points.
- Net profit fell 3.04% year on year despite a 2.63% rise in pre-tax profit, as the tax rate increased by 3.73 percentage points.
- Operating margin declined for a second straight quarter to 8.82%, 4.05 percentage points below the 12.87% median for 180 reporting Consumer Discretionary peers.
Price around the results
Revenue growth did not translate into operating profit
Tube Investments reported consolidated revenue growth of 17.07% year on year in Q1FY27, but operating profit was almost unchanged, rising only 0.33%. Expenses increased 18.99%, outpacing revenue and reducing operating margin by 1.47 percentage points to 8.82%. Sequentially, revenue was flat at 0.01% growth, while expenses rose 0.63% and operating margin declined by 0.56 percentage points.
Higher tax rate and other income shaped reported profit
Net profit declined 3.04% year on year even as pre-tax profit rose 2.63%, because the tax rate increased by 3.73 percentage points. Other income accounted for 24.27% of pre-tax profit, so reported earnings included a material non-operating contribution. Sequentially, net profit rose 25.62%, helped by a 17.2 percentage-point fall in the tax rate from the previous quarter.
Margin is below peers after a second consecutive decline
Operating margin has fallen from 10.08% in Q3FY26 to 9.38% in Q4FY26 and 8.82% in Q1FY27, marking two consecutive quarterly declines after the Q3 peak. The company's margin was 4.05 percentage points below the 12.87% median among 180 Consumer Discretionary peers that had reported the quarter.
Past result-day moves have been mixed
The stock has risen after three of its last eight results and fallen after five, with a median absolute move of 1.57%. The current results were filed during market hours, so there is no post-results move to compare with that history yet.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹6,215 cr | ₹6,215 cr | +0.01% | +17.07% |
| Other income | ₹112 cr | ₹106 cr | +5.49% | +56.48% |
| Expenses | ₹5,667 cr | ₹5,632 cr | +0.63% | +18.99% |
| Operating profit | ₹548 cr | ₹583 cr | -5.95% | +0.33% |
| Operating margin (%) | 8.82% | 9.38% | — | — |
| Interest | ₹16 cr | ₹16 cr | +2.98% | -2.46% |
| Depreciation | ₹183 cr | ₹175 cr | +4.50% | +20.26% |
| Profit before tax | ₹461 cr | ₹498 cr | -7.47% | +2.63% |
| Tax | ₹167 cr | ₹266 cr | -37.27% | +14.42% |
| Net profit | ₹294 cr | ₹234 cr | +25.62% | -3.04% |
| EPS (₹) | ₹8.71 | ₹4.42 | +97.06% | -15.27% |
Operating margin of 8.82% compares with a Consumer Discretionary sector median of 12.87% across 180 peers that have reported Q1FY27.
What to watch
- Whether operating margin recovers from 8.82% after two consecutive quarterly declines.
- Whether expense growth stays below the 18.99% year-on-year rate recorded this quarter.
- Whether other income remains close to 24.27% of pre-tax profit.