Innova Captab Q4 FY26 Results (NSE: INNOVACAP)
Signal: Steady quarter
The read
The key trajectory is sustained top-line acceleration—Q4 revenue grew 42.3% YoY and FY26 revenue grew 31.1%—but the margin engine weakened as material-related costs rose to 66.2% of revenue from 62.9%; FY26 PAT growth consequently lagged revenue growth at 12.5% versus 31.1%, despite Q4 PAT growth of 41.2%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹447.8 Cr | 42.3% | -0.6% |
| Net profit | ₹40.35 Cr | 41.2% | |
| EPS | ₹7.05 | 41.3% | |
| EBIT margin | N/A |
P&L walk
Q4 revenue rose 42.3% YoY to ₹4,478.02 million and PAT rose 41.2% to ₹403.49 million, but material-related costs increased to 66.2% of revenue from 62.9%, indicating input-cost pressure or weaker mix; finance costs also rose 135.3% YoY.
Key positives
- Q4 revenue increased 42.3% YoY to ₹4,478.02 million, extending the recent acceleration from 19.7% YoY in Q1FY26 and 42.4% in Q3FY26.
- Q4 PAT rose 41.2% YoY to ₹403.49 million and EPS rose 41.3% to ₹7.05, with EPS tracking PAT and no dilution signal.
- Employee benefits plus other expenses grew 17.0% YoY to ₹860.54 million, materially slower than the 42.3% revenue growth.
- FY26 operating cash flow increased 80.4% YoY to ₹1,152.19 million from ₹638.44 million.
Key concerns
- Material-related costs increased to 66.2% of Q4 revenue from 62.9% YoY, compressing derived gross margin by approximately 330bps despite 42.3% revenue growth.
- FY26 PAT grew only 12.5% to ₹1,431.83 million against 31.1% revenue growth, showing that full-year profit conversion lagged the expansion in sales.
- Finance costs rose 135.3% YoY to ₹45.93 million in Q4 and 602.6% YoY to ₹168.98 million for FY26, increasing sensitivity to leverage and borrowing costs.
- The approved brownfield expansion at Baddi adds execution and capital-allocation risk, while the filing provides no quantified capacity, capex or commissioning target.
Research and educational content only. Not investment advice.