Hyderabad-based Nava Limited has reported a mixed set of Q4FY26 consolidated results, with strong revenue growth offset by a sharp spike in deferred tax expense that compressed reported profitability significantly relative to the year-ago quarter.
All figures in the P&L are stated in lakhs — converting throughout. Revenue from operations for Q4FY26 came in at ₹1,142.85 crore, up 12.24% year on year from ₹1,018.20 crore in Q4FY25 and up 15.31% sequentially from ₹991.12 crore in Q3FY25. Total income including other income stood at ₹1,194.84 crore against ₹1,055.75 crore a year ago.
Profit before tax from continuing operations came in at ₹325.33 crore for Q4FY26, broadly in line with ₹324.30 crore in Q4FY25. However, the tax line was severely impacted — a deferred tax expense of ₹163.26 crore in Q4FY26 compared to ₹14.74 crore in the year-ago quarter, combined with current tax of ₹25.54 crore, drove total tax expense to ₹188.80 crore against ₹21.13 crore a year ago. Profit from continuing operations consequently fell to ₹136.53 crore from ₹303.17 crore in Q4FY25. After accounting for a loss of ₹0.30 crore from discontinued operations, net profit for the period came in at ₹136.23 crore against ₹302.84 crore — a decline of 55.03% year on year. PAT attributable to shareholders of the holding company was ₹127.13 crore versus ₹234.41 crore in Q4FY25.
For the full year FY26, Nava reported revenue from operations of ₹4,290.92 crore, up 7.72% from ₹3,983.55 crore in FY25. Total income was ₹4,478.66 crore against ₹4,135.17 crore. Full-year profit from continuing operations stood at ₹1,039.96 crore against ₹1,435.72 crore in FY25, with PAT for the full year at ₹1,038.52 crore against ₹1,434.00 crore. PAT attributable to shareholders of the holding company for FY26 was ₹786.67 crore against ₹1,091.48 crore in FY25 — a full-year decline of 27.94%.
The deferred tax charge of ₹163.26 crore in Q4FY26 is the critical number driving the year-on-year PAT compression and will be the primary focus of analyst questions at the earnings call. For the full year, deferred tax expense stood at ₹261.79 crore against a deferred tax credit of ₹10.47 crore in FY25 — a swing of over ₹272 crore in the tax line that explains the bulk of the full-year PAT decline despite revenue growth and broadly stable operating-level performance.
The allowance for expected credit losses showed a reversal of ₹19.93 crore in Q4FY26 against a reversal of ₹47.52 crore in Q4FY25, with full-year ECL reversals of ₹137.13 crore against ₹144.94 crore — indicating that the asset quality improvement cycle may be moderating. Employee costs rose to ₹109.52 crore in Q4FY26 from ₹61.19 crore a year ago, reflecting expansion in the business. Finance costs came in at ₹7.08 crore for the quarter against ₹4.74 crore, while full-year finance costs declined slightly to ₹11.93 crore from ₹25.88 crore.
Nava Limited operates across power generation, ferro alloys, and agribusiness segments, with significant operations in Zambia through its power subsidiary. The discontinued operations loss of ₹1.43 crore for FY26 against ₹1.72 crore in FY25 is a minor drag.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Please consult a SEBI-registered financial advisor before making investment decisions