Caplin Point profit rises 19%, but sequential margin slips as costs grow faster
Operating margin remains 10.65 percentage points above the Healthcare peer median, while other income contributed 13.29% of pre-tax profit.
Filed 14 May 2026, 13:16 IST · Caplin Point Laboratories Ltd (CAPLIPOINT)
Key takeaways
- Consolidated revenue grew 19.45% year on year and net profit rose 19.00%, helped by a 0.58 percentage-point expansion in operating margin.
- Sequentially, expenses grew 12.13% against 10.57% revenue growth, narrowing operating margin by 0.92 percentage points to 34.03%.
- The stock gained 9.88% on the results date, well above the 2.56% median absolute move across its eight recent result reactions.
Price around the results
Year-on-year growth stayed ahead of the cost base
Consolidated revenue rose 19.45% year on year, while expenses increased 18.40%, supporting a 21.53% rise in operating profit and a 19.00% increase in net profit. The 0.58 percentage-point improvement in operating margin helped offset a 1.23 percentage-point rise in the tax rate. Interest expense also rose 111.76%, although it remained a smaller factor in the profit bridge.
Fourth-quarter momentum came with a margin trade-off
Revenue increased 10.57% sequentially, but expenses grew faster at 12.13%, reducing operating margin by 0.92 percentage points. This was the second consecutive quarterly decline in operating margin, from 35.42% in Q2FY26 to 34.95% in Q3FY26 and 34.03% in Q4FY26. Other income accounted for 13.29% of pre-tax profit, so reported earnings also included a meaningful non-operating contribution.
Margin remains well above reported Healthcare peers
Caplin Point's 34.03% operating margin was 10.65 percentage points above the 23.38% median among 48 Healthcare peers that had reported the quarter. Sequential net profit still rose 4.23%, as operating profit increased 7.67% and the tax rate moved up only 0.35 percentage points. Other income fell 15.75% sequentially, limiting the contribution outside operations.
Market reaction was unusually positive for this stock
The stock rose 9.88% on the results date, with gains of 8.52% after one session and 10.00% after five sessions. That result-day move was much larger than the 2.56% median absolute move across eight recent result reactions, although the corporate-action overlap limits how much of the move can be attributed to the results alone.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹600 cr | ₹543 cr | +10.57% | +19.45% |
| Other income | ₹28 cr | ₹34 cr | -15.75% | +9.84% |
| Expenses | ₹396 cr | ₹353 cr | +12.13% | +18.40% |
| Operating profit | ₹204 cr | ₹190 cr | +7.67% | +21.53% |
| Operating margin (%) | 34.03% | 34.95% | — | — |
| Interest | ₹0 cr | ₹0 cr | +100.00% | +111.76% |
| Depreciation | ₹19 cr | ₹19 cr | -2.49% | +10.33% |
| Profit before tax | ₹213 cr | ₹204 cr | +4.68% | +20.81% |
| Tax | ₹41 cr | ₹38 cr | +6.65% | +29.21% |
| Net profit | ₹173 cr | ₹166 cr | +4.23% | +19.00% |
| EPS (₹) | ₹22.38 | ₹21.56 | +3.80% | +19.36% |
Operating margin of 34.03% 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 | +9.88% | +8.70% |
| Next session | +8.52% | — |
| 5 sessions | +10.00% | +8.96% |
| 15 sessions | +10.39% | — |
| 30 sessions | +38.88% | — |
Volume on the results session was 24.44× its 20-day average.
What to watch
- Whether operating margin recovers from 34.03% after two consecutive sequential declines.
- Whether expenses grow more slowly than revenue after rising 12.13% versus 10.57% sequentially.
- Whether other income remains near 13.29% of pre-tax profit.