AWFIS Space Q4 FY26 Results (NSE: AWFIS)
Signal: Margin expansion
The read
Q4FY26 marks the 11th consecutive quarter of OPM expansion (from 27% in Q1FY24 to 37% now), driven by operating leverage as employee costs lag revenue; PAT surged 105.7% YoY. Full-year PAT grew only 3.6% due to Q1 losses in FY25, but trajectory since Q2FY25 is robust. Net debt reduced by ₹265.82 Cr, and operating cash flow doubled to ₹616.38 Cr, signalling strong business quality.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹41.01 Cr | 20.6% | 7.4% |
| EBIT | ₹15.17 Cr | 23.1% | |
| Net profit | ₹2.33 Cr | 105.7% | |
| EPS | ₹3.25 | 105.7% | |
| EBIT margin | 37% |
P&L walk
Revenue growth remains strong at 20.6% YoY with OPM expanding 300bps to 37%, driven by fixed-cost leverage as employee costs grew just 8.8% against 20.6% revenue growth; PAT surges 105.7% YoY tracking EBITDA.
Key positives
- OPM expanded 300bps YoY to 37%, the 11th consecutive quarter of margin expansion — a durable thesis signal.
- PAT grew 105.7% YoY to ₹23.25 Cr, driven entirely by operational improvement.
- Net debt reduced from ₹1,321.04 Cr to ₹1,055.22 Cr (YoY decrease of ₹265.82 Cr).
- Operating cash flow for FY26 stood at ₹616.38 Cr, up 70.1% YoY, supporting debt reduction.
- Annual revenue crossed ₹1,587.81 Cr, up 27% YoY.
Key concerns
- Full-year EPS for FY26 declined 0.6% to ₹9.36 despite PAT growth of 3.6%, due to equity dilution from ESOPs (31,450 shares allotted in Q4).
- Full-year PAT growth of 3.6% lags revenue growth of 27% — improvement came only in later quarters.
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