Rainbow Foundations Q4 FY26: Sales ₹43.26cr, EPS 0.79
Rainbow Foundations Ltd
RAINBOWF
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What changed in Rainbow Foundations’ March 2026 quarter
Rainbow Foundations reported a stronger March 2026 quarter (Q4 FY 2025-26) on operating profitability, with operating margins expanding sharply alongside an improvement in earnings per share (EPS). Consolidated revenue for the quarter increased 13.2% quarter-on-quarter (QoQ) and 31.2% year-on-year (YoY), according to the data shared. Expenses rose at a slower pace, up 4.0% QoQ and 26.9% YoY, helping profitability. Net profit growth stood out, rising 435.6% QoQ and 29.0% YoY, supported by better operating leverage in the quarter. The company also reported EPS of ₹0.79 for Q4 FY 2025-26.
Quarterly revenue and profitability snapshot
For the quarter ended March 2026, Rainbow Foundations reported sales of ₹43.26 crore, with other income of ₹0.34 crore and total income of ₹43.60 crore. Operating profit (also reflected as PBDIT in the provided metrics) was ₹16.03 crore, described as an all-time high. Operating profit margin expanded to 37.06%, marked as the highest recorded in recent periods. Profit after tax (PAT) rose to ₹3.91 crore, also described as the highest quarterly figure to date. EPS for the quarter increased to ₹0.79.
A separate standalone disclosure cited net sales of ₹43.26 crore in March 2026 and compared it to ₹56.85 crore in March 2025, implying a 23.91% decline. That same standalone comparison stated quarterly net profit increased to ₹3.91 crore from ₹3.88 crore, and EBITDA increased to ₹16.37 crore from ₹14.24 crore. The tables provided elsewhere show March 2025 sales at ₹32.94 crore and PAT at ₹3.03 crore, highlighting that multiple datasets and comparison bases are being referenced.
Costs and the key drag: interest expense
While operating performance improved, interest costs remained a notable line item. Interest expense rose to ₹10.76 crore in March 2026, described as the highest quarterly figure recorded. In the quarterly profit and loss table, depreciation was ₹0.07 crore, and profit before tax (PBT) was ₹5.54 crore. Tax paid was ₹1.62 crore, resulting in PAT of ₹3.91 crore.
The same set of metrics also stated that PBT excluding other income reached a peak at ₹5.19 crore. This points to a stronger core operating contribution in the quarter, even as financing costs increased.
QoQ and YoY growth rates highlighted in the update
The update reported a 13.2% QoQ increase in consolidated revenue for Q4 FY 2025-26 and a 31.2% YoY growth rate. Quarterly expenses rose 4.0% QoQ and 26.9% YoY. Net profit increased 435.6% QoQ and 29.0% YoY. EPS for the quarter was reported at ₹0.79.
On the six-month metric cited, net sales over the past six months were ₹81.63 crore, reflecting growth of 21.62%. This additional datapoint supports the narrative of improving topline momentum over the recent half-year period.
Key financials table: March 2026 vs earlier quarters
Full-year numbers: sales, margins, and profit
On an annual basis, Rainbow Foundations reported sales of ₹166.75 crore for the year ended March 2026, compared with ₹156.13 crore in the year ended March 2025. Operating profit for the year rose to ₹46.81 crore from ₹39.52 crore, and operating profit margin improved to 28.07% from 25.31%. However, total net profit including share of profit or loss from associate company was ₹7.12 crore in March 2026, compared with ₹8.01 crore in March 2025. Annual EPS was reported at ₹1.43 for March 2026 versus ₹1.61 for March 2025.
Separately, the text also stated that for the full year FY2026–2027, revenue reached ₹167.66 crore and profit touched ₹7.12 crore. These figures were presented in the dataset and align closely with the annual sales and profit values reported for the March 2026 period in the annual table.
Market check: the stock’s latest cited close
The stock price snapshot shared in the data showed Rainbow Foundations closing at ₹41.99 on 1 June 2026. This was up 1.25% from the previous close of ₹41.47. The price move was provided as a single-day update and does not include longer-period performance in the supplied text.
What the EBITDA commentary says about FY27
The text also noted that RAINBOW reported strong Q1FY27 EBITDA with growth of 30% YoY, aided by organic growth of 24% YoY in Q1. In addition, it stated that FY27E and FY28E EBITDA estimates were increased by 3-4%. The dataset does not provide the underlying base EBITDA values for those estimates, so the magnitude is limited to the stated percentage change.
Why this quarter matters for investors tracking operating leverage
The March 2026 quarter stands out for the sharp rise in operating profit and the expansion in operating profit margin to 37.06%. Net profit growth was also pronounced on a QoQ basis, supported by the jump from ₹0.73 crore PAT in December 2025 to ₹3.91 crore in March 2026, as per the quarterly profit and loss table. At the same time, interest expense of ₹10.76 crore was highlighted as the highest quarterly figure, keeping attention on financing costs. EPS at ₹0.79 provides a simple per-share marker of improved quarterly profitability.
Closing summary
Rainbow Foundations’ Q4 FY 2025-26 update showed rising sales, record operating margin, and higher quarterly net profit and EPS, alongside elevated interest costs. Investors will watch subsequent quarterly disclosures for how the balance between operating gains and financing expenses evolves, especially after the FY27 EBITDA growth commentary cited in the same dataset.
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