Nava shares fall over 10% today as Q4 profit drops 55% despite revenue growth

Shares of Nava declined sharply on Friday, May 15, after the company reported a mixed set of Q4 FY26 results, with higher revenue offset by a sharp increase in deferred tax expense.

The stock was trading at Rs 643.75 at around 2:04 PM IST, down 8.51% or Rs 59.85 from its previous close of Rs 703.60. During the session, the stock moved between Rs 642.50 and Rs 724.00.

Nava reported revenue from operations of Rs 1,142.85 crore in Q4 FY26, up 12.24% year on year from Rs 1,018.20 crore in the corresponding quarter last year. Sequentially, revenue rose 15.31% from Rs 991.12 crore in Q3 FY26.

However, profitability was hit by a sharp rise in deferred tax expense. Profit before tax from continuing operations stood at Rs 325.33 crore, broadly similar to Rs 324.30 crore in Q4 FY25. Total tax expense rose sharply to Rs 188.80 crore from Rs 21.13 crore a year earlier, mainly due to a deferred tax charge of Rs 163.26 crore.

As a result, profit from continuing operations fell to Rs 136.53 crore from Rs 303.17 crore in the year ago quarter. Net profit for the period declined 55.03% YoY to Rs 136.23 crore from Rs 302.84 crore.

PAT attributable to shareholders of the holding company stood at Rs 127.13 crore, compared with Rs 234.41 crore in Q4 FY25.

For FY26, revenue from operations rose 7.72% to Rs 4,290.92 crore from Rs 3,983.55 crore in FY25. However, full year PAT declined to Rs 1,038.52 crore from Rs 1,434.00 crore, while PAT attributable to shareholders fell 27.94% to Rs 786.67 crore.

The stock reaction suggests investors focused on the sharp decline in reported profitability and the steep deferred tax impact, even as operating revenue improved during the quarter.

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