CSM Technologies Q4 FY26 Results (NSE: CSM)
Signal: Margin expansion
The read
Q4 PAT surged 77.7% YoY on modest revenue growth of 2.6%, driven by 911bps EBITDA margin expansion from operating leverage and cost efficiencies; full-year PAT grew 70.2% with order book providing strong revenue visibility (1.5x FY26 revenue).
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹61.67 Cr | 2.61% | -5.18% |
| EBIT | ₹16.41 Cr | 56.03% | |
| Net profit | ₹9.3 Cr | 77.72% | |
| EPS | ₹2.41 | 74.02% | |
| EBIT margin | 26.6% |
P&L walk
Q4 revenue grew modestly 2.6% YoY but EBITDA rose 56.0%, driving 911bps margin expansion; PAT more than doubled on operating leverage and cost efficiencies, partly offset by a ₹273.24 Lakh exceptional charge.
Key positives
- EBITDA margin expanded 911bps YoY to 26.6% in Q4, and 571bps to 21.0% for FY26, driven by operating leverage.
- Full-year PAT grew 70.2% to ₹24.01 Cr, with PAT margin up 347bps to 10.5%.
- Order book of ₹357.63 Cr (1.5x FY26 revenue) provides strong near-term revenue visibility.
- Recommended dividend of ₹0.50 per share, first dividend as listed company.
Key concerns
- Q4 revenue declined 5.18% sequentially, indicating quarterly volatility typical of project-based GovTech business.
- Exceptional charge of ₹273.24 Lakh (0.27 Cr) due to new Labour Codes impacted PAT by about 0.5% of FY26 revenue.
- High dependence on government contracts may lead to lumpy order flows and payment delays.
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