AstraZeneca India’s 29.73% revenue growth fails to prevent profit fall
Expenses grew 42.37% year on year, cutting operating margin by 8.24 percentage points; the stock's initial 1.83% decline was within its usual post-results range.
Filed 11 Aug 2026, 12:56 IST · Astrazeneca Pharma India Ltd (ASTRAZEN)
Key takeaways
- Standalone revenue grew 29.73% year on year, but net profit fell 32.06% as expenses increased 42.37%.
- Operating margin narrowed 8.24 percentage points year on year to 7.17%, leaving AstraZeneca Pharma India third from the bottom among 61 reported healthcare peers.
- Other income contributed 17.71% of pre-tax profit, making the quarter's earnings less representative of operating performance.
Price around the results
Revenue growth did not reach profit
AstraZeneca Pharma India's standalone revenue rose 29.73% year on year and 18.01% sequentially, but net profit declined 32.06% year on year and 15.49% from the previous quarter. Expenses grew faster than revenue in both comparisons, increasing 42.37% year on year and 22.44% sequentially. The result was a 39.66% year-on-year decline in operating profit.
Cost growth drove the margin setback
Operating margin fell 8.24 percentage points year on year and 3.36 percentage points sequentially as costs outpaced revenue growth. The year-on-year increase in interest expense was 170.83%, although interest declined 4.41% sequentially. The tax rate was unchanged year on year but rose 2.45 percentage points from the previous quarter, adding to the sequential pressure on profit.
Margin remains close to the recent low
The 7.17% operating margin was below the 7.33% recorded in Q3FY26, after recovering to 10.53% in Q4FY26; this quarter therefore reversed the latest improvement rather than extending a continuous decline. It was 15.50 percentage points below the 22.67% median margin of 61 healthcare peers that had reported, ranking AstraZeneca Pharma India third from the bottom. Other income accounted for 17.71% of pre-tax profit, which also weakens the quality of reported earnings.
Initial decline was ordinary for this stock
The stock fell 1.83% on the results date, with a 1.53% opening gap lower. Across the last eight results reactions, the stock rose four times and fell four times, while the median absolute move was 2.69%, making this initial decline smaller than its typical move.
Q1FY27 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹683 cr | ₹579 cr | +18.01% | +29.73% |
| Other income | ₹9 cr | ₹5 cr | +84.60% | -17.37% |
| Expenses | ₹634 cr | ₹518 cr | +22.44% | +42.37% |
| Operating profit | ₹49 cr | ₹61 cr | -19.65% | -39.66% |
| Operating margin (%) | 7.17% | 10.53% | — | — |
| Interest | ₹2 cr | ₹2 cr | -4.41% | +170.83% |
| Depreciation | ₹5 cr | ₹6 cr | -6.61% | -68.44% |
| Profit before tax | ₹51 cr | ₹58 cr | -12.71% | -32.06% |
| Tax | ₹13 cr | ₹13 cr | -3.32% | -32.06% |
| Net profit | ₹38 cr | ₹45 cr | -15.49% | -32.06% |
| EPS (₹) | ₹15.17 | ₹17.95 | -15.49% | -32.06% |
Operating margin of 7.17% compares with a Healthcare sector median of 22.67% across 61 peers that have reported Q1FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -1.83% | -1.37% |
Volume on the results session was 0.45× its 20-day average.
What to watch
- Whether operating margin recovers from 7.17% after the sequential decline of 3.36 percentage points.
- Whether expense growth slows from 42.37% year on year relative to revenue growth of 29.73%.
- Whether other income remains a 17.71% contributor to pre-tax profit.