Gandhi Spl. Tube Q4 FY26 Results (NSE: GANDHITUBE)
Signal: Margin expansion
The read
Q4 FY26 standalone PAT ₹68.36 Cr (+16.5% YoY) was driven by revenue growth (+11.1% YoY) and EBITDA margin expansion (+330bps YoY to 49.8%), aided by input cost tailwind (raw material % of revenue down 330bps YoY). Full-year PAT ₹683.64 Cr (+13.5% YoY) with OPM improving 150bps YoY to 47.9%. Exceptional item of ₹24.94 Lakh reversal (labour code provision re-estimated) was immaterial. Zero debt, strong cash generation (CFO ₹55.20 Cr), and ₹20,743 Lakh in investments. Board recommended ₹15 dividend (300%) and proposed buyback of up to ₹78.13 Cr at ₹900/share (7.14% of equity) – capital return story intact. Key concern: Q4 revenue is seasonally high (~48% of full-year); QoQ comparability limited. Overall, resilient execution in a cyclical industry with robust margins and shareholder-friendly capital allocation.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1.92 Cr | 11.1% | 295.9% |
| EBIT | ₹0.92 Cr | 19.6% | |
| Net profit | ₹0.68 Cr | 16.5% | |
| EPS | ₹56.26 | 16.5% | |
| EBIT margin | 49.8% |
P&L walk
Q4 standalone revenue ₹191.77 Cr, +11.1% YoY; EBITDA ₹95.43 Cr, margin 49.8% (+330bps YoY); PAT ₹68.36 Cr, +16.5% YoY; operating leverage evident with revenue growth outpacing fixed costs.
Segments
Single operating segment; no segment disclosure.
Key positives
- EBITDA margin expanded 330bps YoY to 49.8% in Q4; full-year OPM at 47.9% (+150bps YoY) – best in class for industrial products.
- Full-year PAT of ₹683.64 Cr, +13.5% YoY, with zero debt and net cash of over ₹207 Cr in investments.
- Strong cash flow from operations: ₹55.20 Cr in FY26, +17.3% YoY.
- Board proposes ₹15 dividend (300%) and buyback of up to ₹78.13 Cr at ₹900/share – strong capital return.
Key concerns
- Q4 FY26 revenue is 48% of full-year revenue, indicating significant seasonality; QoQ comparisons with Q3 are not meaningful.
- Full-year profit growth (13.5%) lagged prior 3-yr CAGR of 24.47%, suggesting deceleration in earnings trajectory.
Research and educational content only. Not investment advice.