Tube Investments' margin drops 3.36 points as costs outpace revenue
Standalone profit rose sequentially on higher other income, but 43.65% of pre-tax profit came from that non-operating source.
Filed 13 May 2026, 14:15 IST · Tube Investments of India Ltd (TIINDIA)
Key takeaways
- Standalone revenue rose +16.42% YoY, but operating margin narrowed 0.63 percentage points as expenses grew +17.24%.
- Standalone net profit fell -65.15% YoY after other income dropped -77.84% and the tax rate rose 13.09 percentage points.
- Operating margin fell 3.36 percentage points QoQ to 11.02% as expenses grew +10.02%, faster than revenue at +5.87%.
Price around the results
Revenue growth did not prevent a sharp margin reversal
Standalone revenue grew +16.42% YoY and +5.87% QoQ, but expenses rose faster in both comparisons, limiting operating-profit growth to +10.14% YoY and reducing operating margin by 0.63 percentage points YoY. The sequential deterioration was sharper: expenses increased +10.02% against revenue growth of +5.87%, cutting margin by 3.36 percentage points. At 11.02%, the margin was 3.79 percentage points below the 14.81% median for 93 reported Consumer Discretionary peers and ranked 28th from the bottom.
Other income made the sequential profit increase low quality
Standalone net profit rose +50.02% QoQ even as operating profit fell -18.85%, because other income contributed 43.65% of pre-tax profit. That benefit did not carry over from last year: other income fell -77.84% YoY, while the tax rate increased 13.09 percentage points, helping drive net profit down -65.15% YoY. Lower interest expense, down -78.42% YoY, was not enough to offset those effects.
Margin had risen for three quarters before the Q4 drop
Operating margin increased from 12.33% in Q1FY26 to 13.05% in Q2FY26 and 14.38% in Q3FY26, before falling to 11.02% in Q4FY26. The stock slipped -0.44% on the results day and fell -5.19% the next day, although it was up +0.57% by day five. The initial move was modest against the stock's 3.76% median absolute move after its last eight results, while the next-day decline was larger; those reactions followed five down moves and three up moves.
Q4FY26 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹2,279 cr | ₹2,152 cr | +5.87% | +16.42% |
| Other income | ₹156 cr | ₹-7 cr | — | -77.84% |
| Expenses | ₹2,027 cr | ₹1,843 cr | +10.02% | +17.24% |
| Operating profit | ₹251 cr | ₹309 cr | -18.85% | +10.14% |
| Operating margin (%) | 11.02% | 14.38% | — | — |
| Interest | ₹1 cr | ₹1 cr | -21.68% | -78.42% |
| Depreciation | ₹49 cr | ₹48 cr | +2.10% | +5.12% |
| Profit before tax | ₹357 cr | ₹253 cr | +41.15% | -59.41% |
| Tax | ₹74 cr | ₹64 cr | +14.98% | +11.00% |
| Net profit | ₹284 cr | ₹189 cr | +50.02% | -65.15% |
| EPS (₹) | ₹14.65 | ₹9.77 | +49.95% | -65.17% |
Operating margin of 11.02% 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 | -0.44% | -0.58% |
| Next session | -5.19% | — |
| 5 sessions | +0.57% | -0.62% |
| 15 sessions | +4.89% | — |
| 30 sessions | +3.39% | — |
Volume on the results session was 1.69× its 20-day average.
What to watch
- Whether operating margin recovers from 11.02% after the 3.36 percentage-point QoQ decline.
- Whether expenses grow slower than revenue after rising +10.02% QoQ versus revenue growth of +5.87%.
- The share of pre-tax profit coming from other income after it reached 43.65% in Q4FY26.