Other income reversal cuts Albert David profit 91% QoQ
Operating execution improved, but a negative other-income contribution and higher tax rate sharply reduced reported profit.
Filed 12 Nov 2026, 13:13 IST · Albert David Ltd (ALBERTDAVD)
Key takeaways
- Operating margin improved 1.07 percentage points QoQ to 11.56% as expenses fell faster than revenue.
- Net profit fell 91.00% QoQ because other income swung from Rs 27.96 cr to negative Rs 3.64 cr and the tax rate rose 32.80 percentage points.
- Albert David’s operating margin was 10.12 percentage points below the 21.68% median for 94 Healthcare peers.
Price around the results
Operating profit rose despite softer revenue
This standalone quarter saw revenue decline 0.50% QoQ, while operating profit increased 9.60% to Rs 11.65 cr. Expenses fell 1.68%, faster than revenue, lifting operating margin by 1.07 percentage points to 11.56%. The improvement was operational, but it did not offset the loss of other income below operating profit.
Other income reversal drove the profit collapse
Other income moved from Rs 27.96 cr in Q1FY27 to negative Rs 3.64 cr, contributing -71.51% of pre-tax profit in the current quarter. As a result, profit before tax fell 85.78% QoQ even as interest expense declined 23.08%. The tax rate rose from 10.61% to 43.41%, further reducing net profit to Rs 2.88 cr.
Margin remains below the Healthcare peer median
Albert David’s 11.56% operating margin was 10.12 percentage points below the 21.68% median among 94 Healthcare companies that had reported the quarter. The quarter-to-quarter margin direction was positive, but the reported profit trend was sharply negative because Q1FY27 included substantial other income. The stock fell 3.66% on the results date, with a 2.55-times volume ratio; no post-results history is provided here for judging whether that move was usual.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹101 cr | ₹101 cr | -0.50% |
| Other income | ₹-4 cr | ₹28 cr | — |
| Expenses | ₹89 cr | ₹91 cr | -1.68% |
| Operating profit | ₹12 cr | ₹11 cr | +9.60% |
| Operating margin (%) | 11.56% | 10.49% | — |
| Interest | ₹0 cr | ₹1 cr | -23.08% |
| Depreciation | ₹3 cr | ₹2 cr | +10.04% |
| Profit before tax | ₹5 cr | ₹36 cr | -85.78% |
| Tax | ₹2 cr | ₹4 cr | -41.84% |
| Net profit | ₹3 cr | ₹32 cr | -91.00% |
| EPS (₹) | ₹5.05 | ₹56.07 | -90.99% |
Operating margin of 11.56% compares with a Healthcare sector median of 21.68% across 94 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -3.66% | -3.84% |
Volume on the results session was 2.55× its 20-day average.
What to watch
- Whether operating margin holds above 11.56% after this quarter’s 1.07-percentage-point improvement.
- Whether other income recovers from negative Rs 3.64 cr without again dominating pre-tax profit.
- Whether the tax rate falls from 43.41% toward the Q1FY27 level of 10.61%.