Alembic profit jumps on other income as operating margin falls
Net profit rose 150.99% QoQ as other income increased 202.54%, while weaker revenue momentum pushed operating margin down 14.24 percentage points.
Filed 06 Nov 2026, 16:45 IST · after market close · Alembic Ltd (ALEMBICLTD)
Key takeaways
- Net profit rose 150.99% QoQ to Rs 162.87 cr, driven mainly by other income rather than operations.
- Operating margin fell 14.24 percentage points to 17.47% as revenue declined 37.94% while expenses fell 25.02%.
- Other income contributed 99.28% of consolidated profit before tax, making the quarter's earnings largely non-operational.
Price around the results
Profit growth came from a non-operating source
Alembic's consolidated net profit rose 150.99% QoQ even as revenue fell 37.94% to Rs 30.25 cr. Other income increased 202.54% to Rs 166.85 cr, lifting profit before tax 152.61% to Rs 168.06 cr. Other income accounted for 99.28% of pre-tax profit, so the earnings increase was not led by the operating business.
Revenue fell faster than expenses, compressing margin
Operating profit declined 65.85% QoQ because expenses fell 25.02%, less than the 37.94% decline in revenue. That mismatch reduced operating margin by 14.24 percentage points to 17.47%. The tax rate also rose 0.62 percentage points to 3.09%, although the low rate still limited the tax charge relative to pre-tax profit.
Margin stayed above the reported consumer discretionary median
Alembic's 17.47% operating margin was 6.05 percentage points above the 11.42% median for the 287 Consumer Discretionary peers that had reported. The comparison is supportive on the operating margin level, but the sequential direction was weaker, with margin down from 31.71% in Q1FY27.
Results were filed after market close
The consolidated results were filed after market close on 06 Nov 2026.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹30 cr | ₹49 cr | -37.94% |
| Other income | ₹167 cr | ₹55 cr | +202.54% |
| Expenses | ₹25 cr | ₹33 cr | -25.02% |
| Operating profit | ₹5 cr | ₹15 cr | -65.85% |
| Operating margin (%) | 17.47% | 31.71% | — |
| Interest | ₹1 cr | ₹1 cr | -13.33% |
| Depreciation | ₹4 cr | ₹3 cr | +2.30% |
| Profit before tax | ₹168 cr | ₹67 cr | +152.61% |
| Tax | ₹5 cr | ₹2 cr | +216.46% |
| Net profit | ₹163 cr | ₹65 cr | +150.99% |
| EPS (₹) | ₹6.34 | ₹2.53 | +150.59% |
Operating margin of 17.47% compares with a Consumer Discretionary sector median of 11.42% across 287 peers that have reported Q2FY27.
What to watch
- Whether revenue improves from Rs 30.25 cr next quarter.
- Whether operating margin recovers from 17.47%.
- Whether other income remains a large contributor after accounting for 99.28% of pre-tax profit.