L G Balakrishnan Q4 FY26: Sales up 22%, PAT falls

What the March quarter numbers show

L G Balakrishnan & Bros Ltd reported a mixed set of consolidated results for the quarter ended March 31, 2026 (Q4 FY26). Total income rose year-on-year, reflecting strong demand conditions through the year. But profitability softened, with net profit declining versus the year-ago quarter and the immediately preceding quarter. The results matter because the company has been posting strong top-line momentum over multiple quarters, making margin and cost trends a key investor focus.

For Q4 FY26, the company reported consolidated total income of ₹837.51 crore, compared with ₹684.62 crore in Q4 FY25. Consolidated net profit for the quarter came in at ₹69.73 crore, down from ₹84.04 crore a year ago. Earnings per share (EPS) also moved lower to ₹21.86 from ₹26.35 in the comparable quarter.

Q4 FY26 revenue growth, but profit declines YoY

On a year-on-year basis, the topline improvement was clear. Total income increased 22.33% to ₹837.51 crore in Q4 FY26 from ₹684.62 crore in Q4 FY25. Revenue from sales was reported at ₹815.00 crore versus ₹669.17 crore, a rise of 21.79% over the same period.

Despite higher revenue, net profit fell 17.03% year-on-year to ₹69.73 crore. The operating profit margin (OPM) was lower in the March quarter, with OPM reported at 14.17% versus 15.25% in Q4 FY25. Profit before tax (PBT) rose to ₹102.29 crore from ₹89.47 crore, and profit before depreciation and tax (PBDT) increased to ₹133.80 crore from ₹114.10 crore. Even with higher PBDT and PBT, the bottom line declined compared with the year-ago quarter.

Sequential performance: Q4 versus Q3 FY26

Quarter-on-quarter, total income was largely flat. The company reported total income of ₹837.51 crore in Q4 FY26 versus ₹832.80 crore in Q3 FY26, a 0.57% increase. Net profit, however, declined 21.15% to ₹69.73 crore from ₹88.43 crore in the December 2025 quarter.

EPS moved in line with profit, declining to ₹21.86 in Q4 FY26 from ₹27.73 in Q3 FY26. The QoQ divergence between stable income and lower profit highlights the importance of tracking margins and cost movements across quarters.

Full-year FY26: steady profit growth on higher income

For the full year ended March 2026, L G Balakrishnan & Bros reported consolidated net profit growth of 5.51% to ₹318.75 crore, up from ₹302.11 crore in FY25. Sales rose 19.29% to ₹3,075.63 crore in FY26 from ₹2,578.29 crore in FY25.

Total income for FY26 was reported at ₹3,144.04 crore, compared with ₹2,633.52 crore in FY25, a 19.39% increase. Full-year EPS increased to ₹99.95 from ₹95.44. OPM for the year was reported at 15.73% compared with 16.09% in the previous year.

Margins and operating metrics in focus

The quarter data indicates that revenue growth did not translate into higher profitability in Q4 FY26. The reported OPM decline in Q4 FY26 versus Q4 FY25 points to margin pressure. While PBDT and PBT rose year-on-year in the March quarter, the net profit decline suggests higher costs or other factors affecting post-tax profitability.

The broader narrative in the provided data also points to margin compression in the preceding quarter (Q3 FY26). In the December 2025 quarter, operating margin (excluding other income) was reported at 16.49%, down 86 basis points sequentially from 17.35%. Employee costs were reported at ₹134.45 crore versus ₹128.22 crore quarter-on-quarter, while depreciation rose to ₹29.62 crore from ₹27.76 crore. The Q3 FY26 commentary also noted a drop in gross profit margin to 17.05% from 18.81% sequentially.

Analyst estimates versus reported results

The provided material also cites consensus expectations ahead of Q4 FY26. Estimates projected revenue of ₹665 crore (about 7% year-on-year growth) and profit after tax (PAT) of ₹88 crore (about 13% year-on-year growth). In the reported results, Q4 FY26 total income was ₹837.51 crore, while consolidated net profit was ₹69.73 crore.

This comparison indicates the quarter delivered higher income than the cited estimate, but profit was lower than the estimated PAT figure in the same material. The gap underlines why investors often separate topline strength from profitability quality, especially when margins are fluctuating.

Key numbers at a glance (Q4 FY26)

Full-year summary (FY26 vs FY25)

Why these results matter for investors

The Q4 FY26 print reinforces that the company continues to grow its revenue base at a strong pace year-on-year. But it also highlights that profitability can move differently from revenue, even in periods of rising income. With OPM reported lower in both the quarter and the full year versus the previous year, operating efficiency remains a central variable to track.

The QoQ decline in net profit despite flat income adds another layer for investors watching quarterly volatility. The December quarter commentary in the provided data also flagged cost increases and margin compression, which provide context for why the market may focus more on margins than on revenue growth alone.

Conclusion

L G Balakrishnan & Bros closed FY26 with nearly 19% growth in total income and a 5.51% rise in consolidated net profit for the year. In Q4 FY26, income increased strongly year-on-year, but net profit fell both year-on-year and quarter-on-quarter, alongside a lower operating margin. The next set of results will be important for confirming whether margins stabilise after the pressure indicated across recent quarters.