AstraZeneca India profit falls 23% as costs outpace 20% revenue growth
The margin recovered 3.20 percentage points sequentially, but remained 12.85 points below the healthcare peer median.
Filed 26 May 2026, 19:47 IST · after market close · Astrazeneca Pharma India Ltd (ASTRAZEN)
Key takeaways
- Standalone revenue grew +20.42% YoY, but expenses grew +31.36%, cutting operating margin by 7.45 percentage points.
- Net profit fell -22.95% YoY despite a 2.96-percentage-point lower tax rate and an 8.38% contribution from other income to pre-tax profit.
- The stock fell -3.51% on the first trading day, well beyond its 1.24% median move after the past eight results.
Price around the results
Revenue growth did not convert into YoY profit growth
AstraZeneca Pharma India’s standalone revenue grew +20.42% YoY, but net profit declined -22.95% as expenses rose faster than sales. Sequentially, revenue fell -5.39%, while expenses declined -8.65%, allowing operating margin to recover by 3.20 percentage points and net profit to rise +37.71%.
Higher costs and tax effects shaped earnings quality
The YoY margin decline reflects expenses growing 31.36% against 20.42% revenue growth. Interest expense also rose +200.00% YoY, while the tax rate fell by 2.96 percentage points, which softened the decline in net profit. Other income contributed 8.38% of pre-tax profit, so reported earnings were not entirely operating in origin.
Margin rebounded from Q3 but remains near the bottom of healthcare
Operating margin fell from 17.98% in Q4FY25 through 15.41%, 13.45% and 7.33% in the next three quarters before recovering to 10.53% in Q4FY26. That is still 7.45 percentage points below the year-ago level. Among 48 healthcare peers that have reported, the company’s margin was 12.85 percentage points below the sector median and ranked second from the bottom.
The market reaction was unusually negative for this stock
The stock fell -3.51% on the first trading day after the results, was down -5.00% after five sessions and -9.43% after 30 sessions. The first-day decline was much larger than the 1.24% median absolute move after the past eight results, with trading volume at 11.62 times the usual level.
Q4FY26 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹579 cr | ₹612 cr | -5.39% | +20.42% |
| Other income | ₹5 cr | ₹7 cr | -26.32% | -53.49% |
| Expenses | ₹518 cr | ₹567 cr | -8.65% | +31.36% |
| Operating profit | ₹61 cr | ₹45 cr | +35.87% | -29.48% |
| Operating margin (%) | 10.53% | 7.33% | — | — |
| Interest | ₹2 cr | ₹1 cr | +92.45% | +200.00% |
| Depreciation | ₹6 cr | ₹4 cr | +45.83% | -68.34% |
| Profit before tax | ₹58 cr | ₹47 cr | +24.92% | -25.91% |
| Tax | ₹13 cr | ₹14 cr | -4.95% | -34.42% |
| Net profit | ₹45 cr | ₹33 cr | +37.71% | -22.95% |
| EPS (₹) | ₹17.95 | ₹13.04 | +37.65% | -22.96% |
Operating margin of 10.53% compares with a Healthcare sector median of 23.38% across 48 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -3.51% | -3.48% |
| Next session | -3.69% | — |
| 5 sessions | -5.00% | -2.92% |
| 15 sessions | -4.84% | — |
| 30 sessions | -9.43% | — |
Volume on the results session was 11.62× its 20-day average.
What to watch
- Whether operating margin recovers from 10.53% after the sequential 3.20-percentage-point improvement.
- Whether expense growth moves below the +31.36% YoY pace against revenue growth of +20.42%.
- Whether other income remains close to 8.38% of pre-tax profit and the tax rate stays below 22.81%.