NCL Industries Q4 FY26 Results (NSE: NCLIND)
Signal: Margin expansion
The read
Q4FY26 marks a sharp inflection after four quarters of revenue decline and margin compression: revenue turned positive (+6.5% YoY) and EBITDA margin expanded 707bps YoY to 15.8%, driven by cost controls and operating leverage. However, net profit of ₹66 Cr is inflated by a non-cash deferred tax credit of ₹20.4 Cr; adjusted PAT still shows strong underlying improvement. The discontinued Doors division impairs results by ₹24 Cr but will be removed going forward.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹399.63 Cr | 6.5% | 16.7% |
| EBIT | ₹47.58 Cr | 162.5% | |
| Net profit | ₹66.09 Cr | 586.3% | |
| EPS | ₹15.14 | 627.9% | |
| EBIT margin | 11.9% |
P&L walk
Q4FY26 revenue grew 6.5% YoY to 39,963 Lakh, reversing prior quarter declines; EBITDA jumped 93.3% to 6,295 Lakh (margin 15.8% vs 8.7% a year ago) on cost controls (other expenses down 22%, transport down 1.9%, employee flat) and operating leverage as fixed costs grew slower than revenue; EBIT rose 162.5% to 4,758 Lakh; net profit from continuing operations surged 586% to 6,609 Lakh, but was flattered by a deferred tax credit of 2,042 Lakh (non-cash); excluding this credit, PAT would be ~4,567 Lakh – still strong vs year ago 963 Lakh, driven by operating improvement.
Segments
No segment breakdown provided in the filing; the Doors division is classified as discontinued operations and resulted in a loss of 2,411 Lakh for Q4, including impairment of 2,575 Lakh.
Key positives
- EBITDA margin expanded 707bps YoY to 15.8%, highest in recent quarters, from cost controls and operating leverage (EBITDA +93% vs revenue +6.5%).
- Revenue grew 6.5% YoY, reversing a four-quarter trend of declines (Q1-Q3FY25 averaged -20%).
- Net profit from continuing operations surged 586% YoY to ₹66 Cr, though partly non-cash.
- Board recommended final dividend of ₹2/share, supporting a yield of 1.65%.
- Fixed assets increased significantly (PPE +18% YoY) indicating capacity expansion.
Key concerns
- Net profit growth is significantly boosted by a non-cash deferred tax credit of ₹20.4 Cr; without it, PAT would be ~₹45.7 Cr.
- Discontinued Doors division incurred a loss of ₹24.1 Cr in Q4, including a one-time impairment of ₹25.8 Cr, indicating ongoing operational challenges.
- Revenue growth at 6.5% remains tepid; full-year revenue grew only 0.8% YoY.
- Other income was 23% of PBT, a high proportion that distorts underlying operating performance.
Earnings quality: includes non-operating other income
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