Revenue surged, but operating profit fell as costs outpaced growth
Other income supplied 99.06% of pre-tax profit, while a -0.79% tax rate also aided reported net profit.
Filed 08 Sep 2026, 12:13 IST · TREJHARA (TREJHARA)
Key takeaways
- Consolidated revenue grew +337.97% YoY, but expenses grew +415.41%, pushing operating margin down 14.52 percentage points.
- Net profit rose +427.87% YoY to Rs 3.22 cr, aided by a -0.79% tax rate and other income contributing 99.06% of pre-tax profit.
- Operating profit fell -17.54% YoY to Rs 1.41 cr despite the sharp increase in revenue.
Revenue growth did not reach operating profit
The consolidated company reported revenue growth of +337.97% YoY to Rs 41.87 cr, but operating profit declined -17.54% to Rs 1.41 cr. Expenses grew +415.41%, faster than revenue, so operating margin narrowed by 14.52 percentage points to 3.37%. This shows a sharp increase in scale without a corresponding improvement in operating conversion.
Reported profit was heavily dependent on non-operating items
Other income of Rs 3.16 cr accounted for 99.06% of pre-tax profit, making it the main contributor to reported earnings. The -0.79% tax rate also aided net profit, compared with a 63.46% tax rate in Q4FY25. As a result, the +427.87% YoY increase in net profit gives a less favourable picture of operating performance than the headline earnings growth suggests.
Year-on-year scale-up came with weaker margins
Compared with Q4FY25, revenue increased from Rs 9.56 cr to Rs 41.87 cr, while operating profit moved from Rs 1.71 cr to Rs 1.41 cr. The gap between revenue growth and expense growth was therefore the central feature of the quarter. The available trend shows the prior-year quarter, so there is no multi-quarter margin direction to assess here.
Q4FY26 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q4FY26 | YoY |
|---|---|---|
| Revenue | ₹42 cr | +337.97% |
| Other income | ₹3 cr | +251.11% |
| Expenses | ₹40 cr | +415.41% |
| Operating profit | ₹1 cr | -17.54% |
| Operating margin (%) | 3.37% | — |
| Interest | ₹0 cr | — |
| Depreciation | ₹1 cr | +7.29% |
| Profit before tax | ₹3 cr | +91.02% |
| Tax | ₹-0 cr | — |
| Net profit | ₹3 cr | +427.87% |
| EPS (₹) | ₹1.35 | +221.43% |
What to watch
- Whether operating margin recovers from 3.37% after the 14.52-point YoY decline.
- Whether expense growth falls below the +337.97% YoY revenue growth rate.
- Whether other income remains close to 99.06% of pre-tax profit.