Aarti Drugs trails healthcare peers on operating margin in Q1FY27
Its 13.97% margin was 8.98 points below the 27-peer median, while negative other income and finance and depreciation charges weighed on profit conversion.
Filed 31 Jul 2026, 19:20 IST · after market close · Aarti Drugs Ltd (AARTIDRUGS)
Key takeaways
- Aarti Drugs' consolidated operating margin of 13.97% was 8.98 percentage points below the 22.95% median for 27 healthcare peers reporting the quarter.
- Profit conversion faced interest of Rs 9.22 cr, depreciation of Rs 18.46 cr and a 27.6% tax rate, while other income was negative at Rs -1.28 cr.
- Consolidated revenue of Rs 702.78 cr generated operating profit of Rs 98.20 cr, resulting in a 13.97% operating margin in Q1FY27.
Price around the results
Q1FY27 revenue produced a low operating margin
Aarti Drugs reported consolidated revenue of Rs 702.78 cr and operating profit of Rs 98.20 cr in Q1FY27. The resulting 13.97% operating margin was 8.98 percentage points below the 22.95% median of 27 healthcare peers that had reported the quarter. This places the company fourth from the bottom among the reported peer set.
Charges weighed on profit conversion
Operating profit was reduced by interest of Rs 9.22 cr and depreciation of Rs 18.46 cr before arriving at profit before tax of Rs 69.24 cr. Other income was negative at Rs -1.28 cr, so it did not support pre-tax profit. A 27.6% tax rate then left consolidated net profit at Rs 50.13 cr, or EPS of Rs 5.49.
Results were filed after market close
The consolidated results were filed at 19:20 IST on 31 July 2026, after market close. The stock's post-results reaction is therefore not covered yet.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹703 cr |
| Other income | ₹-1 cr |
| Expenses | ₹605 cr |
| Operating profit | ₹98 cr |
| Operating margin (%) | 13.97% |
| Interest | ₹9 cr |
| Depreciation | ₹18 cr |
| Profit before tax | ₹69 cr |
| Tax | ₹19 cr |
| Net profit | ₹50 cr |
| EPS (₹) | ₹5.49 |
Operating margin of 13.97% compares with a Healthcare sector median of 22.95% across 27 peers that have reported Q1FY27.
What to watch
- Whether operating margin moves from 13.97% toward the 22.95% healthcare-peer median.
- Whether interest and depreciation remain at Rs 9.22 cr and Rs 18.46 cr respectively.
- Whether other income recovers from Rs -1.28 cr.