Anupam Rasayan's costs outpaced revenue, cutting operating margin by 7.29 points
Revenue rose 27.12% year on year, but higher expenses, interest and depreciation outweighed the benefit of a sharply lower tax rate.
Filed 23 May 2026, 19:24 IST · after market close · Anupam Rasayan India Ltd (ANURAS)
Key takeaways
- Consolidated revenue grew 27.12% year on year, but operating profit fell 4.96% as expenses rose 40.14%.
- Operating margin narrowed 7.29 percentage points year on year to 21.59%, with interest costs rising 34.24%.
- Net profit declined 11.01% to Rs 56.00 cr despite a 28.46 percentage-point fall in the tax rate.
Price around the results
Revenue growth did not convert into operating profit
Anupam Rasayan reported consolidated revenue growth of 27.12% year on year in Q4FY26, but operating profit fell 4.96%. Expenses grew 40.14%, faster than revenue, which narrowed operating margin by 7.29 percentage points to 21.59%. Sequentially, revenue rose 24.07% and operating profit rose 7.70%, but costs still grew faster at 29.49%.
Lower tax softened a weaker pre-tax result
Profit before tax fell 36.37% year on year as interest rose 34.24% and depreciation rose 39.20%. The tax rate fell 28.46 percentage points to 0.13%, limiting the decline in net profit to 11.01%; this made the reported profit less representative of operating performance. Other income contributed 6.01% of pre-tax profit, so it was not the main driver of earnings.
Margin remains below the levels seen earlier in the series
Operating margin moved from 31.86% in Q3FY25 to 28.88% in Q4FY25, 25.58% in Q1FY26 and 18.57% in Q2FY26, before recovering to 24.88% in Q3FY26 and slipping to 21.59% in Q4FY26. The company was 2.82 percentage points above the 18.77% median operating margin of the 51 Commodities peers that had reported the quarter.
Expansion pipeline includes two executed projects
Management said the Vevoor plant has an executed capex project of Rs 260 cr and the Palghar suppositories plant has an executed capex project of Rs 50 cr. The presentation also said the molecule pipeline exceeds 62, including more than 48 for regulated markets. Management reported that the Vevoor ointment facility is still awaiting plant approval.
Initial market reaction was smaller than its usual result-day move
The stock opened 1.75% higher and closed 0.37% higher after the results, versus a median absolute move of 2.69% across its past eight result reactions. It was down 3.02% after five sessions and 7.79% after 30 sessions. The results were filed after market close on 23 May 2026.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹636 cr | ₹512 cr | +24.07% | +27.12% |
| Other income | ₹3 cr | ₹2 cr | +60.48% | -39.17% |
| Expenses | ₹498 cr | ₹385 cr | +29.49% | +40.14% |
| Operating profit | ₹137 cr | ₹127 cr | +7.70% | -4.96% |
| Operating margin (%) | 21.59% | 24.88% | — | — |
| Interest | ₹42 cr | ₹35 cr | +19.20% | +34.24% |
| Depreciation | ₹43 cr | ₹34 cr | +23.82% | +39.20% |
| Profit before tax | ₹56 cr | ₹60 cr | -6.47% | -36.37% |
| Tax | ₹0 cr | ₹-1 cr | — | -99.72% |
| Net profit | ₹56 cr | ₹61 cr | -7.58% | -11.01% |
| EPS (₹) | ₹3.75 | ₹4.31 | -12.99% | -7.64% |
Operating margin of 21.59% compares with a Commodities sector median of 18.77% across 51 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | +0.37% | -0.95% |
| Next session | +0.31% | — |
| 5 sessions | -3.02% | -2.02% |
| 15 sessions | -7.66% | — |
| 30 sessions | -7.79% | — |
Volume on the results session was 1.30× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Expansion
- The Vevoor plant has an executed capex project of Rs. 260 crore.
- The Palghar suppositories plant has an executed capex project of Rs. 50 crore.
New initiatives
- The company has a pipeline of more than 62 molecules, including more than 48 for regulated markets.
Problems & risks
- The Vevoor ointment facility is awaiting plant approval.
What to watch
- Whether operating margin recovers from 21.59% while expenses are growing faster than revenue.
- Whether interest growth moderates from 34.24% year on year.
- Whether the Vevoor ointment facility receives the plant approval that management said was pending.