Shalby Q4 FY26 Results (NSE: SHALBY)
Signal: Loss reversed
The read
Q4FY26 marks a turnaround to profitability after three quarters of losses, with OPM expanding 200bps YoY to 10%. Full-year results show the impact of one-time tax benefits; operational recovery is still early-stage. The standalone deferred tax credit (₹34.02 Cr) is non-recurring, so future profitability depends on sustained margin improvement.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹287 Cr | +8.3% | +5.5% |
| Net profit | ₹18 Cr | N/A | |
| EPS | ₹1.7 | N/A | |
| EBIT margin | 10% |
P&L walk
Q4FY26 consolidated revenue grew 8.3% YoY to ₹287 Cr, operating margin expanded 200bps to 10% on better cost control, PAT swung to ₹18 Cr from -₹12 Cr. Full-year PAT ₹37.39 Cr includes one-time benefits from tax regime shift.
Key positives
- Return to profitability: Q4 PAT ₹18 Cr vs loss of ₹12 Cr in Q4FY25.
- Operating margin expanded 200bps YoY to 10% despite moderate revenue growth.
- FY26 consolidated PAT ₹37.39 Cr (+501% YoY) driven by operational recovery and one-time tax benefits.
- Standalone OCF of ₹91.20 Cr remains healthy.
Key concerns
- Revenue growth remains modest at 8.3% YoY, decelerating from historical double-digit rates.
- Consolidated PAT heavily influenced by one-time deferred tax credit (₹34.02 Cr) – core profitability still low.
- Other income at 44.2% of PBT in FY26 consolidated (₹26.79 Cr) – high reliance on non-operating earnings.
- Impairment of investment in subsidiary (₹0.70 Cr) indicates stress in some group entities.
Earnings quality: includes non-operating other income
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