Concord Biotech profit rises 43.74% YoY, but margin drops sequentially
Revenue growth outpaced expenses year on year, while the sequential margin decline reflected costs falling slower than revenue.
Filed 31 Jul 2026, 18:18 IST · after market close · Concord Biotech Ltd (CONCORDBIO)
Key takeaways
- Standalone net profit rose 43.74% year on year to Rs 61.19 cr as revenue grew faster than expenses.
- Operating margin improved 3.36 percentage points year on year but fell 4.09 percentage points sequentially to 33.46%.
- Other income accounted for 15.93% of pre-tax profit, making it a material contributor to reported earnings.
Price around the results
Year-on-year profit growth masks a sequential slowdown
Concord Biotech reported standalone net profit growth of 43.74% year on year in Q1FY27, with revenue up 27.71% and expenses up 21.57%. Sequentially, revenue fell 20.06% and net profit declined 32.03% to Rs 61.19 cr, marking a clear slowdown from Q4FY26. EPS rose 43.73% year on year to Rs 5.85 but fell 31.98% sequentially.
Margins improved from last year but fell from Q4
Year-on-year margin expansion of 3.36 percentage points followed revenue growing faster than expenses. Sequentially, expenses declined 14.82%, less than the 20.06% fall in revenue, so operating margin narrowed 4.09 percentage points to 33.46%. The tax rate also rose 1.61 percentage points sequentially to 25.56%, adding to the pressure below operating profit.
Operating margin remains above the healthcare peer median
The 33.46% operating margin was 8.96 percentage points above the 24.5% median for the 28 healthcare peers that had reported the same quarter. The quarterly trend shows margin recovering from 30.1% in Q1FY26 to 37.55% in Q4FY26 before this quarter's decline, so the latest move interrupts the prior improvement rather than extending a multi-quarter fall.
Other income was a meaningful part of pre-tax profit
Other income contributed 15.93% of pre-tax profit, making it a material non-operating component of the reported result. Its value fell 15.7% sequentially and 4.24% year on year, so it did not drive the year-on-year earnings increase. The results were filed after market close; across eight prior result reactions, the stock rose four times and fell four times, with a median absolute move of 2.01%.
Q1FY27 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹261 cr | ₹326 cr | -20.06% | +27.71% |
| Other income | ₹13 cr | ₹16 cr | -15.70% | -4.24% |
| Expenses | ₹173 cr | ₹204 cr | -14.82% | +21.57% |
| Operating profit | ₹87 cr | ₹122 cr | -28.76% | +41.99% |
| Operating margin (%) | 33.46% | 37.55% | — | — |
| Interest | ₹0 cr | ₹0 cr | -83.33% | -83.33% |
| Depreciation | ₹18 cr | ₹19 cr | -7.39% | +1.52% |
| Profit before tax | ₹82 cr | ₹118 cr | -30.55% | +43.62% |
| Tax | ₹21 cr | ₹28 cr | -25.88% | +43.29% |
| Net profit | ₹61 cr | ₹90 cr | -32.03% | +43.74% |
| EPS (₹) | ₹5.85 | ₹8.60 | -31.98% | +43.73% |
Operating margin of 33.46% compares with a Healthcare sector median of 24.50% across 28 peers that have reported Q1FY27.
What to watch
- Whether revenue recovers from Rs 260.52 cr toward the Q4FY26 level of Rs 325.89 cr.
- Whether operating margin holds above 33.46% after the 4.09-percentage-point sequential decline.
- Whether other income remains close to its 15.93% share of pre-tax profit.