Pokarna Q4 FY26 Results (NSE: POKARNA)
Signal: Revenue declined
The read
Consolidated Q4FY26 shows revenue down 44.1% YoY and PAT down 56.5% — this is the seventh straight quarter of YoY revenue and profit decline, with the operating margin contracting 700bps YoY to 31% (but sequentially improving 100bps from Q3's 30%). The standalone parent (granite operations) is loss-making — Q4 standalone net loss of ₹125.56 lakh vs profit of ₹73.61 lakh — and the entire consolidated profit is driven by the subsidiary's earnings; the FY26 full year shows a consolidated net loss of ₹973.69 lakh (standalone FY26 loss of ₹973.69 lakh), indicating the subsidiary's profit was insufficient to offset the parent's losses. The key positive is a sequential revenue improvement from Q3 (₹135 Cr to ₹147 Cr) and OPM from 30% to 31%, but the YoY decline remains severe.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1.47 Cr | -44.1% | +8.9% |
| EBIT | ₹0.45 Cr | -58.8% | |
| Net profit | ₹0.26 Cr | -56.5% | |
| EPS | ₹8.26 | -56.5% | |
| EBIT margin | 31% |
P&L walk
Standalone (parent-only) results show a deeper loss — Q4FY26 standalone revenue ₹620.3 lakh (-20.7% YoY), net loss of ₹125.56 lakh versus a profit of ₹73.61 lakh in Q4FY25 — highlighting that the parent's granite operations are under severe pressure, while the consolidated profit is entirely from the subsidiary (Pokarna Engineered Stone Ltd).
Segments
The standalone (parent) granite segment — the only reported segment — posted a segment PBIT of just ₹85.13 lakh in Q4FY26, down 73% from ₹315.78 lakh in Q4FY25, and the segment result before finance costs and depreciation was negative after absorbing those charges; the consolidated profit of ₹26 Cr is entirely from the wholly-owned subsidiary Pokarna Engineered Stone Limited, which is not shown as a separate segment but whose income (dividend of ₹625.59 lakh paid to parent in FY26) supports the parent's other income and ultimately the group's net profit.
Key positives
- Consolidated Q4FY26 revenue of ₹147 Cr — though down 44.1% YoY — was up 8.9% sequentially from Q3FY26's ₹135 Cr, a modest sequential recovery.
- EBITDA margin of 31% in Q4FY26, while down 700bps YoY, improved 100bps sequentially from Q3FY26's 30%, suggesting operating leverage may be stabilising at lower levels.
- Cash flow from operations turned positive to ₹242.01 lakh in FY26 from -₹371.76 lakh in FY25, driven by working capital release (trade receivables down, payables up).
- No audit qualification — clean unmodified opinion on both standalone and consolidated results.
Key concerns
- Revenue declined 44.1% YoY — seventh consecutive quarter of YoY revenue decline; FY26 full-year revenue down 21.8% YoY (₹2,269.44 lakh vs ₹2,900.93 lakh).
- Operating margin contracted 700bps YoY to 31%, with fixed costs (employee + other expenses + finance cost) absorbing an increased share of revenue.
- Standalone (parent) granite segment is loss-making — Q4FY26 net loss of ₹125.56 lakh vs profit of ₹73.61 lakh in Q4FY25; FY26 standalone loss of ₹973.69 lakh vs profit of ₹695.78 lakh in FY25.
- Consolidated FY26 PAT is a net loss of ₹973.69 lakh (vs profit of ₹695.78 lakh in FY25), a massive deterioration driven by the parent's poor performance.
- Net debt increased 22% to ~₹3,390 lakh despite operating cash flow improvement and asset sales, due to higher borrowings.
- Inventory days extremely high at ~432 days, indicating slow-moving stock and potential obsolescence/impairment risk.
- Dividend per share maintained at ₹0.60, but payout amounts to ₹186.02 lakh, which exceeds FY26's negative free cash flow — dividend sustainability questionable given losses.
- No management commentary or guidance provided in the filing — lack of forward-looking insight.
Research and educational content only. Not investment advice.