Concord Biotech's Q4 profit fell 36.98% despite a sequential rebound
Revenue grew 17.39% QoQ and margin recovered, but the YoY comparison shows costs falling less than revenue and other income supporting profit.
Filed 29 May 2026, 18:22 IST · after market close · Concord Biotech Ltd (CONCORDBIO)
Key takeaways
- Consolidated net profit fell 36.98% YoY as revenue declined 24.15% and operating margin narrowed 7.95 percentage points.
- Sequential momentum improved, with revenue up 17.39% and operating margin rising 0.72 percentage points to 36.35%.
- Other income contributed 13.3% of pre-tax profit, while the tax rate fell 3.68 percentage points QoQ to support the profit increase.
Price around the results
Sequential recovery could not offset the YoY decline
Consolidated revenue rose 17.39% QoQ, lifting operating profit 19.75% and net profit 39.02%. The YoY comparison was weaker: revenue fell 24.15% and net profit declined 36.98%, reflecting the sharp comparison with Q4FY25. Operating margin recovered from 35.63% in Q3FY26 but remained 7.95 percentage points below the year-ago quarter.
Costs and other income shaped the margin and profit outcome
QoQ revenue grew faster than expenses, at 17.39% versus 16.09%, allowing operating margin to improve by 0.72 percentage points. YoY, expenses fell 13.33% while revenue fell 24.15%, so costs declined less than sales and margin narrowed by 7.95 percentage points; depreciation also rose 33.65%. Other income accounted for 13.3% of pre-tax profit, and the 3.68-percentage-point QoQ fall in the tax rate also aided net profit.
Margin remains above the reported Healthcare peer median
Concord Biotech's 36.35% operating margin was 12.97 percentage points above the 23.38% median for the 48 Healthcare peers that had reported the same quarter. The quarterly trend shows recovery from 30.10% in Q1FY26 to 35.82% in Q2FY26, a small dip to 35.63% in Q3FY26, and a further improvement in Q4FY26.
Management linked the FY27 view to new facilities and pipeline
Management said it had progressed the commercialisation of its injectable and soft gel facilities during the year and had commercialised Fusidic acid. The company said it remained confident of an improving trend in FY2026-27. It also told investors that order enquiries and its customer acquisition pipeline supported its optimism about strong outperformance in FY27.
The initial stock reaction was within its usual range
The stock rose 0.96% on the first session after the results, below its 2.01% median absolute move across eight recent results reactions. The move was initially ordinary for the stock, although the cumulative reaction reached 13.84% by day five.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹326 cr | ₹278 cr | +17.39% | -24.15% |
| Other income | ₹15 cr | ₹6 cr | +152.83% | +93.74% |
| Expenses | ₹208 cr | ₹179 cr | +16.09% | -13.33% |
| Operating profit | ₹119 cr | ₹99 cr | +19.75% | -37.75% |
| Operating margin (%) | 36.35% | 35.63% | — | — |
| Interest | ₹0 cr | ₹0 cr | +0.00% | -20.00% |
| Depreciation | ₹20 cr | ₹19 cr | +4.21% | +33.65% |
| Profit before tax | ₹114 cr | ₹86 cr | +32.40% | -37.84% |
| Tax | ₹26 cr | ₹23 cr | +13.77% | -40.66% |
| Net profit | ₹88 cr | ₹64 cr | +39.02% | -36.98% |
| EPS (₹) | ₹8.46 | ₹6.08 | +39.14% | -36.96% |
Operating margin of 36.35% 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 | +0.96% | +1.66% |
| Next session | +10.94% | — |
| 5 sessions | +13.84% | +15.65% |
| 15 sessions | +27.25% | — |
| 30 sessions | +26.29% | — |
Volume on the results session was 1.67× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- The company progressed commercialization of its injectable and soft gel facilities during the year.
Guidance & outlook
- The company remains confident of an improving trend in FY2026-27.
- The company is highly optimistic about strong outperformance in FY27, supported by order enquiries and its customer acquisition pipeline.
New products
- The company commercialized Fusidic acid during the year.
What to watch
- Whether operating margin holds above 36.35% after the Q4 recovery.
- Whether revenue growth remains ahead of expense growth after the Q3-to-Q4 increases of 17.39% and 16.09%.
- Whether other income's 13.3% share of pre-tax profit moderates as the new facilities and Fusidic acid commercialisation progress.