Board Pack · group consolidation
Q4 FY26 · 6 entities · 4 segments
Consolidated after intercompany · FX · captive transfer pricing
Reported EBITDA margin
18.4%
presented to the board
Segment profitability · Q4rank · margin → restated
#1
Home Textiles · Exports
Inter-co sales to branded-retail entity eliminated; captive yarn & power repriced at arm's length
24.0%
#2
Bed & Bath Retail
Two entities closed 6 days late & estimated · exports booked at budget FX, not spot
15.0%
#3
Paper & Chemicals
Minor cost reclass — broadly as reported
12.0%
#4
Yarn & Spinning
Sold captive yarn below market & carried group overhead — corrected
9.0%
What the board pack left out — group margin 18.4% → 18.4%
1Intercompany not eliminated · branded-retail entity's inter-co purchases counted as external−1.5pp
2FX & late entities · exports at budget FX; 2 entities estimated, not actualised−1.8pp
3Captive transfer pricing & overhead · cheap internal yarn & power inflated textiles — repriced0pp · re-ranks
Group EBITDA · restated consolidated after honest eliminations
₹318 Cr−₹57 Cr · and your segments re-ranked
Your worst division is your bestcaptive transfers hid it
✓Clean quarter — 18.4% group EBITDA, every segment green.Consolidated from 6 entities in Excel at face value. Looks right… until intercompany, FX and the late entities are reconciled.
⚠ The consolidated total is roughly right — but the segment mix you allocate capital and incentives on is backwards.
Eliminate intercompany, correct FX and late closes, then reprice captive yarn & power at arm's length: Yarn & Spinning goes from last to first, Home Textiles — your "star" — drops to #2, and group EBITDA restates to ₹261 Cr, not ₹318 Cr. The figure is rebuilt by hand every close. Govern the consolidation once and the board sees the real mix.
Illustrative · representative model, not a client. 2 entities close 6 days late · intercompany mapped by hand · FX at budget vs spot — flagged, not hidden.