LT

Employee costs rose to ₹13,762.92 crores in Q4 FY26, up 7.52% sequentially and 11.38% year-on-year, reflecting wage inflation and headcount expansion to support growing operations. Interest expenses remained elevated at ₹2,488.03 crores, though the company's operating profit to interest coverage improved to 4.19 times—the highest in recent quarters—demonstrating enhanced debt servicing capability despite the elevated debt levels. The profit after tax margin expanded to 7.63% in Q4 FY26 from 5.36% in Q3 FY26, driven primarily by a favourable tax rate of 24.88% compared to 28.69% in the previous quarter. This tax benefit, combined with strong revenue growth, enabled the dramatic 65.64% sequential profit surge. However, the year-on-year PAT margin contracted by 61 basis points from 8.24%, underscoring the underlying margin pressure facing the business.