Indo Amines Q4 FY26 Results (NSE: INDOAMIN)
Signal: Margin expansion
The read
Q4FY26 standalone delivered 7th consecutive YoY OPM expansion (12.72%, +151bps) as revenue grew 11.7% YoY and cost of materials % contracted 320bps to 67.0% — a clear input-cost tailwind combined with operating leverage. Full-year OPM hit 13.25% (FY25: 11.21%), driving PAT of ₹79.77 Cr (+29.9% YoY). Capex continues (PPE + CWIP up 20.4% YoY) funded by borrowings (D/E still comfortable at 0.79). The margin trajectory is structurally up: three-year PAT CAGR 43.6% vs sales CAGR 7.5%. A one-off land sale gain in Q1FY26 boosted other income; ex that, core operating profit trajectory is strong.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹311.08 Cr | 11.7% | 15.8% |
| EBIT | ₹28.6 Cr | 99.0% | |
| Net profit | ₹20.79 Cr | 89.3% | |
| EPS | ₹2.86 | 85.7% | |
| EBIT margin | 12.72% |
P&L walk
Consolidated figures not separately filed — standalone statements form the group P&L as company has no separate consolidated P&L in filing; the auditor's report mentions subsidiaries but a consolidated P&L table is not printed.
Segments
Single-segment chemical business; no segment results table printed — all operations aggregated.
Key positives
- 7th consecutive quarter of YoY OPM expansion — OPM moved from 7% (Q4FY24) to 12.72% (Q4FY26): a sustained margin re-rating.
- Revenue grew 11.7% YoY while cost of materials % contracted 320bps — pricing power + input relief both active.
- Full-year PAT margin at 6.87% vs 5.81% in FY25 — up ~106bps, the highest in recent history.
- Debt-equity ratio improved to 0.79 (from 0.89) despite capex, indicating prudent leverage management.
- Cash flow from operations ₹73.13 Cr vs PAT ₹79.77 Cr — 91.7% cash conversion.
Key concerns
- Depreciation rose 39.2% YoY to ₹5.65 Cr — the capex cycle is accelerating; margin needs to sustain to absorb higher depreciation.
- Net debt increased to ₹288.25 Cr (from ₹264.72 Cr) as borrowings funded capex — while D/E is comfortable, absolute debt is rising.
- Receivable days crept up to ~87 (vs ~83 in FY25) — working capital management needs monitoring.
- ESOP grant of 5.60 lakh options approved — expected EPS dilution (0.8% of shares outstanding) will impact future quarters from Q1FY27.
Research and educational content only. Not investment advice.