Narmadesh Brass (NARMADESH) Q4 FY26 Profit Sinks Under Cost Surge Despite Record Sales
The brass components maker saw quarterly revenue jump 86%, but a sharp rise in expenses pushed it into a loss, capping a year of margin pressure.
Narmadesh Brass Industries' Q4 FY26 revenue soared to ₹61.95 crore, but total expenses rose even faster, resulting in a net loss. The full year saw profit decline 30% despite 8.5% revenue growth.
For a brass components maker, the quarter is a race between sales growth and the cost of the copper and zinc it buys. Narmadesh Brass Industries posted a dramatic 86% jump in quarterly revenue, but a surge in expenses turned that top-line win into a bottom-line loss.
The numbers show a stark reversal. Revenue for the quarter ended March 2026 hit ₹61.95 crore, up from ₹33.27 crore in the September quarter. Yet, net profit swung to a loss of ₹0.76 crore from a profit of ₹4.32 crore. The net profit margin collapsed by 1,420 basis points to -1.2%.
Revenue & profit
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ4 FY26 |
|---|---|
| Revenue (₹ Cr) | 61.95 |
| Profit (₹ Cr) | -0.76 |
| Net Profit Margin (%) | -1.2 |
Where the profit vanished
The loss stems from costs that rose faster than sales. Total expenses for the half-year jumped 119% to ₹62.61 crore, according to data from Newboard. This pushed the operating margin for H2 FY26 to -1.1%, a sharp fall from 15.8% in the first half.
A key driver was raw material costs. Data from Tickertape shows raw material consumption rose to ₹91.98 crore for the full FY26, up from ₹77.43 crore the prior year. This suggests input cost inflation eroded gains from higher sales volumes.
A full year of pressure
The quarterly loss capped a challenging year. Full-year revenue grew 8.5% to ₹95.22 crore, but profit after tax fell 29.9% to ₹3.55 crore. The operating profit margin contracted 370 basis points to 6.9%, as reported by ScanX.
This margin squeeze is reflected in cash flow. Newboard data shows cash from operations was negative ₹14.22 crore in FY26, while the cash conversion cycle stretched to 160 days. The company is holding inventory for longer, tying up working capital.
The market's mixed read
Despite the profit decline, the stock has shown resilience. Shares were trading around ₹340 in early November, up significantly from levels near the May results announcement. The valuation, at a P/E of 28.2, trades at a 112% premium to the industry, per the payload.
This suggests the market may be looking past a difficult quarter toward the structural demand for brass in India's plumbing, sanitary and electrical sectors. Reports from Accio highlight strong growth for industrial brass rods, with prices surging 11.57% in Q2 2026.
Key Points
- Quarterly revenue nearly doubled sequentially, but total expenses rose even faster, resulting in a net loss.
- Full-year profitability was pressured, with net profit down 30% despite 8.5% revenue growth due to margin compression.
- Working capital efficiency deteriorated, with a cash conversion cycle of 160 days and negative operating cash flow for the year.
- The stock trades at a significant premium to the industry, indicating market optimism on long-term sector demand.
Hexa Perspective
The quarter reveals a business caught between strong volume growth and intense cost pressure. The 86% revenue surge is impressive, but the complete erosion of profitability shows how vulnerable margins are to raw material inflation.
The critical question is whether this is a one-quarter mismatch or a new normal. With the cash conversion cycle stretching and operating cash flow negative, the strain is tangible. For the premium valuation to hold, Narmadesh Brass must demonstrate it can pass on input costs or significantly improve operational efficiency in the quarters ahead.
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