TAAL Tech Q4 FY26 Results (NSE: TAALTECH)
Signal: Steady quarter
The read
TAAL Tech delivered a solid annual performance with 6.6% revenue growth and 16.3% PAT growth (consolidated), but the headline PAT was materially aided by other income (25.6% of PBT). The standalone Q4 figure (balancing figure) jumped sharply on a low base. The company remains net-debt-free with strong margins (~40% EBITDA), but operating cash flow declined 20.6% YoY due to a large increase in trade receivables. The business is asset-light with minimal capex; the key risk is sustainability of other income and working capital management.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1.97 Cr | 6.6% | 331.2% |
| EBIT | ₹0.74 Cr | 10.4% | |
| Net profit | ₹0.57 Cr | 16.3% | |
| EPS | ₹181.99 | 16.3% | |
| EBIT margin | 31.3% |
P&L walk
Revenue growth of 6.6% YoY (full year) with EBITDA margin of 39.7%; PAT includes material other income (25.6% of PBT) boosting headline net profit growth.
Key positives
- Consolidated EBITDA margin of 39.7% — strong for a services business
- Debt-free balance sheet with net cash of ₹720 lakh (standalone)
- Standalone PAT grew 59.1% YoY to ₹53.75 Cr — aided by other income but still robust
- EPS (consolidated) ₹181.99, +16.3% YoY
Key concerns
- Other income contributed 25.6% of consolidated PBT — core operating profit growth is lower than headline PAT suggests
- Operating cash flow (standalone) declined 20.6% YoY to ₹2,885 lakh despite higher PAT, driven by a ₹2,707 lakh increase in trade receivables
- Q4 standalone PAT of ₹1,703.53 lakh is largely a balancing figure and not indicative of quarterly run-rate (prior 3 quarters averaged ~₹1,100-1,400 lakh)
- Employee cost grew 10.5% YoY (standalone), slightly outpacing revenue growth of 9.4%
Earnings quality: includes non-operating other income
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