Bal Pharma margin improves, but other income drives most pre-tax profit
Consolidated Q2FY27 revenue grew 1.50% QoQ while operating margin remained 12.02 percentage points below the Healthcare peer median.
Filed 11 Nov 2026, 18:24 IST · after market close · Bal Pharma Ltd (BALPHARMA)
Key takeaways
- Consolidated operating margin widened 0.66 percentage points QoQ to 9.63% as revenue grew 1.50% and expenses grew 0.76%.
- Net profit increased 25.44% QoQ, but other income contributed 84.46% of pre-tax profit and the tax rate rose to 25.87% from 0%.
- Bal Pharma's 9.63% operating margin was 12.02 percentage points below the Healthcare median across 90 reported peers.
Price around the results
Revenue growth outpaced expenses in Q2FY27
Bal Pharma's consolidated revenue increased 1.50% QoQ, while expenses rose 0.76%, allowing operating margin to widen by 0.66 percentage points to 9.63%. Operating profit consequently grew 8.93% QoQ. The quarter-on-quarter comparison shows modest revenue momentum rather than a sharp change in scale.
Higher other income supported reported profit
Net profit rose 25.44% QoQ even as interest expense increased 11.41% and depreciation rose 21.58%, which limited the conversion of operating profit into pre-tax profit. Other income made up 84.46% of pre-tax profit, making the reported profit mix less operating-led. The tax rate moved to 25.87% from 0% in Q1FY27, partly tempering the profit increase.
Margin remains below the Healthcare peer median
Bal Pharma's 9.63% operating margin was 12.02 percentage points below the 21.65% median for 90 Healthcare peers that had reported the quarter. The results were filed after market close on 11 November 2026, so there was no immediate market reaction to assess.
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 | ₹90 cr | ₹89 cr | +1.50% |
| Other income | ₹2 cr | ₹0 cr | +270.45% |
| Expenses | ₹81 cr | ₹81 cr | +0.76% |
| Operating profit | ₹9 cr | ₹8 cr | +8.93% |
| Operating margin (%) | 9.63% | 8.97% | — |
| Interest | ₹5 cr | ₹4 cr | +11.41% |
| Depreciation | ₹3 cr | ₹3 cr | +21.58% |
| Profit before tax | ₹2 cr | ₹1 cr | +69.30% |
| Tax | ₹1 cr | ₹0 cr | — |
| Net profit | ₹1 cr | ₹1 cr | +25.44% |
| EPS (₹) | ₹0.89 | ₹0.71 | +25.35% |
Operating margin of 9.63% compares with a Healthcare sector median of 21.65% across 90 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 9.63% next quarter.
- Whether interest expense remains below Rs 4.98 cr.
- Whether other income falls below 84.46% of pre-tax profit.