Kirl. Ferrous Q4 FY26 Results (NSE: KIRLFER)
Signal: Growth reaccelerated
The read
Q4FY26 shows continued operational improvement with OPM expansion and strong cash generation, though gross margin QoQ dip warrants monitoring. Full-year PAT boosted by ₹110 Cr one-off tax reversal from merger DTA; underlying profitability still solid. Net debt reduction is a clear positive.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,817.16 Cr | 4.62% | 12.30% |
| Net profit | ₹125.68 Cr | 36.1% | |
| EPS | ₹7.63 | 36.0% | |
| EBIT margin | 12.36% |
P&L walk
Revenue growth moderate at 4.6% YoY; gross margin expanded YoY (+220bps to 42.9%) but contracted QoQ; OPM improved 77bps YoY to 12.36% helped by lower finance costs and higher other income; PAT up 36% YoY, boosted by one-off tax reversal in full year but Q4 tax normalised.
Key positives
- Revenue growth of 4.6% YoY with OPM expansion of +77bps to 12.36%
- PAT growth 36% YoY, driven by margin expansion, lower finance costs, and higher other income
- Net debt reduced ~₹294 Cr YoY; debt-equity improved to 0.27 from 0.37
- Strong operating cash flow of ₹942 Cr vs ₹662 Cr prior year
Key concerns
- Gross margin QoQ declined 170bps from 44.6% to 42.9%, though YoY up 220bps
- Raw material cost as % of revenue increased YoY to 53.9% from 52.9%
- FY26 PAT includes ~₹110 Cr non-recurring tax reversal from merger DTA; underlying profitability lower
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