Haz.Multi Proj. Q4 FY26 Results (BSE: 532467)
Signal: Margins at cyclical peak
The read
Standalone Q4FY26 shows a mixed picture: revenue declined 36.9% YoY to ₹14,351.55 lakh, but PAT rose 67.6% to ₹1,044.24 lakh due to a sharp expansion in gross margin (from 16.6% to 65.7%) and higher other income (₹1,325.68 lakh vs ₹170.44 lakh last year). EBITDA margin stood at ~57.5%, but after depreciation of ₹7,998.11 lakh, EBIT margin was only 1.73%. The depreciation surge reflects amortisation of toll rights acquired during the year. Net debt reduced to ₹1,908.39 lakh from ₹7,268.60 lakh a year ago, and cash flow from operations was strong. However, profit quality is weak—earnings are heavily dependent on low-cost construction and other income, not core revenue growth. Equity dilution from warrant conversion capped EPS growth.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹143.52 Cr | -36.9% | +88.9% |
| EBIT | ₹2.48 Cr | -76.8% | |
| Net profit | ₹10.44 Cr | +67.6% | |
| EPS | ₹0.43 | +38.7% | |
| EBIT margin | 1.73% |
P&L walk
Revenue fell sharply YoY but gross margin exploded from 16.6% to 65.7% due to a drastic reduction in subcontracting costs and inventory reversal; EBITDA margin high but EBIT margin thin after massive depreciation; other income contributed heavily to PAT.
Key positives
- Gross margin expanded from 16.6% to 65.7% YoY, aided by a sharp reduction in subcontracting costs.
- Other income surged to ₹1,325.68 lakh (9.2% of revenue), boosting PAT.
- Net debt reduced dramatically to ₹1,908.39 lakh from ₹7,268.60 lakh, improving financial health.
- Cash flow from operations strong at ₹29,508.85 lakh for FY26.
Key concerns
- Revenue declined 36.9% YoY, indicating weak underlying business momentum.
- Depreciation jumped to ₹7,998.11 lakh (55.7% of revenue), weighing on net profit.
- Profit growth is largely driven by other income and accounting changes in cost structure, which may not be sustainable.
- EPS growth (38.7%) lagged PAT growth (67.6%) due to 29% equity dilution from warrant conversion.
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