HMT Q4 FY26 Results (NSE: HMT)
Signal: Loss widened
The read
Consolidated Q4FY26 revenue spiked QoQ on a one-off Projects inflow, but the core Machine Tools business continues to bleed; full-year revenue flat, PAT loss narrowed only marginally; standalone results are propped up by interest income; net worth fully eroded, auditor modified opinion with inventory and receivable qualification; going concern hinges on government support.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹71.44 Cr | -82.1% | +243.0% |
| EBIT | ₹-34.83 Cr | +41.1% | |
| Net profit | ₹-37.45 Cr | -4.8% | |
| EPS | ₹-1.05 | +4.0% | |
| EBIT margin | -48.8% |
P&L walk
Consolidated Q4FY26: revenue surged 243% QoQ on a sharp uptick in Projects segment (₹4,317 lakh vs ₹88 lakh QoQ), but still down 82% YoY; operating loss narrowed to -₹3,483 lakh (vs -₹5,911 lakh YoY) but margin remained deeply negative at -48.8%; PAT loss widened to -₹3,745 lakh (-4.8% YoY) as other income fell 37% and tax expense reappeared; full-year revenue essentially flat (+0.2%) while PAT loss improved 8% to -₹13,154 lakh.
Segments
Projects segment swung from ₹0.88 Cr Q3 to ₹43.17 Cr Q4 revenue with a positive PBIT of ₹0.41 Cr — the only segment making an operating profit; Machine Tools remained the biggest drag with -₹16.16 Cr PBIT on ₹20.35 Cr revenue; Others segment (incl. watch assembly) turned from +₹6.63 Cr PBIT Q3 to -₹2.73 Cr Q4 loss.
Key positives
- Projects segment revenue surged to ₹43.17 Cr in Q4 (vs ₹0.88 Cr Q3) and turned positive PBIT at ₹0.41 Cr — potential for similar lumpy orders.
- Consolidated operating cash flow improved to +₹4,395 Cr in FY26 vs -₹4,634 Cr in FY25 — working capital release aided collection.
- Standalone net loss narrowed to -₹0.67 Cr in Q4FY26 from -₹1.69 Cr YoY, aided by higher other income.
Key concerns
- Consolidated gross margin turned deeply negative; operating margin at -48.8% reflects structural cost-revenue mismatch.
- Machine Tools segment remains the largest drag with -₹16.16 Cr PBIT in Q4 and full-year -₹79.89 Cr — no turnaround visible.
- Auditor's modified opinion with inventory valuation, GST reconciliation, and ECL allowance issues raises earnings quality concerns.
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