Roto Pumps Q4 FY26 Results (NSE: ROTO)
Signal: Steady quarter
The read
Q4FY26 delivered the worst OPM in 12 quarters (15.73%) despite modest revenue growth — raw material costs rocketed to 40.4% of revenue (+880bps YoY), employee costs surged 24.2% of revenue (+410bps), and other expenses rose to 17.3% (+240bps). This is the third consecutive quarter of YoY margin compression (Q2: -230bps, Q3: -465bps, Q4: -992bps), now a structural pricing/cost problem. Full-year PAT ₹1,881 lakh (-38.9% YoY) confirms a deteriorating earnings trajectory despite net cash of ~₹398 lakh and continued capex (₹2,229 lakh).
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹81.3 Cr | 2.9% | 11.9% |
| EBIT | ₹12.78 Cr | 15.4% | |
| Net profit | ₹5.73 Cr | -55.9% | |
| EPS | ₹0.3 | -55.9% |
P&L walk
Revenue growth stalled at +2.9% YoY, QoQ recovery from Q3 lull (+11.9%) but OPM collapsed 992bps YoY to 15.73% — every cost line rose as % of revenue (raw materials +880bps, employee +410bps, other expenses +240bps), erasing margin gains from Q3's expansion and producing the worst margin in 12 quarters.
Segments
Company reports single segment — Pumps & Spares. Subsidiaries are not reported separately; consolidated vs standalone PAT gap is ~₹9 lakh, implying foreign subs were collectively near breakeven.
Key positives
- Net cash improved to ~₹398 lakh (FY25: ~₹216 lakh) as total borrowings fell ₹775 lakh YoY — lower finance cost.
- Operating cash flow ₹3,595 lakh (1.69x PAT) remains strong despite working capital stretch.
Key concerns
- OPM collapsed 992bps YoY to 15.73% — worst in 12 quarters; 3rd consecutive quarter of YoY margin compression (structural).
- Raw material cost surged to 40.4% of revenue (+880bps YoY) — input-cost headwind not offset by pricing.
- Full-year revenue -5.6% YoY and PAT -38.9% YoY reflect shrinking scale and earnings erosion.
- Working capital stretched: receivable days rose to 115 (+17 days YoY) and inventory days to 85 (+23 days YoY).
Research and educational content only. Not investment advice.