Bengal & Assam Q4 FY26 Results (NSE: BENGALASM)
Signal: Earnings declined
The read
Q4FY26 marks the 5th consecutive quarter of single-digit/negative PAT growth despite revenue acceleration to +20.9% YoY, the highest in recent quarters; margin compression persists across key segments (Paper, Cement remain loss-making at PBIT level) and one-time exceptional items (labour code liability ₹782.56 Lakhs, stamp duty ₹194.78 Lakhs) plus deferred tax reversal of ₹733.69 Lakhs on subsidiary tax regime change dragged PAT by -9.9% YoY. Full-year FY26 PAT grew only +3.0% despite +8.2% revenue growth, highlighting structural margin pressure.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹6.3 Cr | 20.9% | 18.6% |
| Net profit | ₹2.04 Cr | -9.9% | |
| EPS | ₹178.04 | -9.9% | |
| EBIT margin | N/A |
P&L walk
Revenue growth accelerated to +20.9% YoY in Q4, the fastest in 5 quarters, driven by cyclical recovery in tyre/paper/cement segments; operating profit (PBIT) grew +19.8% YoY but PAT fell -9.9% due to exceptional items (₹782.56 Lakhs labour code impact + ₹194.78 Lakhs stamp duty) and deferred tax reversal of ₹733.69 Lakhs on subsidiary's tax regime change.
Segments
Tyre segment is the largest profit driver with PBIT of ₹114.15 Lakhs in Q4 (up from loss of ₹3.97 Lakhs in Q4FY25), driving the consolidated PBIT growth; Paper and Cement segments remained loss-making at operating level with PBIT losses of ₹10.18 Lakhs and ₹4.46 Lakhs respectively. Polymer segment delivered the highest segment profit at ₹5,055.18 Lakhs, though declined from ₹9,749.70 Lakhs in Q4FY25.
Key positives
- Q4FY26 revenue ₹630 Cr grew +20.9% YoY, accelerating from +8.6% in Q3FY26 and reversing 5 quarters of sub-10% growth
- All 5 operating segments (Tyre +22.5%, Paper +18.8%, Cement +35.5%, Polymer +18.6%, Textile +34.2%) delivered double-digit revenue growth
- Tyre segment swung from operating loss of ₹3.97 Lakhs in Q4FY25 to profit of ₹114.15 Lakhs in Q4FY26
- Consolidated operating cash flow for FY26 at ₹37,689 Lakhs, +28.0% YoY, indicating healthy cash generation
- P/E of 8.67x at 46% discount to industry P/E of 20.73x; P/B of 0.67x suggests deep value valuation
Key concerns
- PAT declined -9.9% YoY to ₹204 Cr despite +20.9% revenue growth, impacted by exceptional items (₹977 Lakhs) and deferred tax reversal (₹734 Lakhs)
- Paper segment remains loss-making at PBIT level for 5th straight quarter (₹10.18 Lakhs loss in Q4FY26 vs ₹17.08 Lakhs loss in Q4FY25)
- Cement segment also loss-making at PBIT level at ₹4.46 Lakhs loss in Q4FY26 vs ₹48.12 Lakhs loss in Q4FY25, though improving
- Full-year FY26 PAT growth of only +3.0% vs +8.2% revenue growth reflects persistent margin compression across the portfolio
- No disclosure of net debt, GNPA, or NIM metrics typical for NBFC classification - company operates more as an investment holding company
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