Margin improved, but Balaxi's profit fell as finance costs rose
Consolidated operating margin rose 0.51 percentage points QoQ, but higher interest, depreciation and tax rate pulled net profit down -11.54%.
Filed 12 Nov 2026, 13:58 IST · Balaxi Pharmaceuticals Ltd (BALAXI)
Key takeaways
- Consolidated net profit declined -11.54% QoQ even as revenue grew +0.86%.
- Operating margin improved by 0.51 percentage points to 6.29% because revenue growth outpaced expense growth.
- Net profit was pressured by a 42.93% tax rate and negative other income equal to -41.09% of pre-tax profit.
Price around the results
Modest revenue growth did not reach net profit
Balaxi's consolidated revenue rose +0.86% QoQ, while net profit declined -11.54% and EPS fell -12.50% to Rs 0.21. The result shows limited operating momentum despite the small increase in sales.
Lower cost growth lifted margin, but below-the-line costs rose
Expenses grew +0.30% against revenue growth of +0.86%, allowing operating margin to expand by 0.51 percentage points. That improvement was offset below operating profit as interest increased +17.81%, depreciation rose +67.06%, and the tax rate increased by 5.03 percentage points to 42.93%. Other income was negative and equal to -41.09% of pre-tax profit, so it did not support earnings.
Margin remains well below the healthcare peer median
The 6.29% operating margin was 15.39 percentage points below the 21.68% median among 94 healthcare peers that had reported the quarter. It was the sixth-lowest margin in that comparison. Against Q1FY27, the margin improved from 5.78% as expenses grew more slowly than revenue.
Shares rose on the filing day
Balaxi shares rose +4.46% on 12 November, with a +1.81% opening gap and trading volume at 3.43x the reference average. The stock's same-day relative return was +4.28%.
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 | ₹81 cr | ₹81 cr | +0.86% |
| Other income | ₹-1 cr | ₹-1 cr | +16.16% |
| Expenses | ₹76 cr | ₹76 cr | +0.30% |
| Operating profit | ₹5 cr | ₹5 cr | +9.87% |
| Operating margin (%) | 6.29% | 5.78% | — |
| Interest | ₹1 cr | ₹1 cr | +17.81% |
| Depreciation | ₹1 cr | ₹1 cr | +67.06% |
| Profit before tax | ₹2 cr | ₹2 cr | -3.35% |
| Tax | ₹1 cr | ₹1 cr | +10.13% |
| Net profit | ₹1 cr | ₹1 cr | -11.54% |
| EPS (₹) | ₹0.21 | ₹0.24 | -12.50% |
Operating margin of 6.29% 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 | +4.46% | +4.28% |
Volume on the results session was 3.43× its 20-day average.
What to watch
- Whether operating margin holds above 6.29% after its 0.51-percentage-point QoQ improvement.
- Whether interest growth moderates from +17.81% QoQ and depreciation growth from +67.06%.
- The tax rate versus 42.93% and other income versus its -41.09% share of pre-tax profit.