Costs outpaced revenue, trimming Corona Remedies’ margin QoQ
Operating profit rose 3.03%, but higher depreciation and a slightly higher tax rate left net profit nearly flat.
Filed 30 Oct 2026, 18:35 IST · after market close · Corona Remedies Ltd (CORONA)
Key takeaways
- Revenue grew 4.44% QoQ, but expenses rose faster at 4.83%, narrowing operating margin by 0.30 percentage points.
- Net profit increased only 0.33% QoQ as depreciation rose 13.75% and the tax rate moved up 0.11 percentage points.
- The 21.75% operating margin matched the median of 37 reported healthcare peers, while management said 400 Mn additional tablets began commercial production at its Gujarat facility.
Price around the results
Revenue growth did not fully reach net profit
In consolidated Q2FY27 results, revenue rose 4.44% QoQ and operating profit grew 3.03%. Profit before tax increased only 0.49%, while net profit rose 0.33% to Rs 60.31 cr. Other income accounted for 3.23% of pre-tax profit, so it was not a major driver of earnings.
Faster cost growth narrowed the operating margin
Expenses grew 4.83%, ahead of the 4.44% revenue growth, reducing operating margin by 0.30 percentage points to 21.75%. Depreciation rose 13.75% and interest increased 2.23% QoQ, limiting the conversion of operating profit into pre-tax profit. The tax rate also increased by 0.11 percentage points to 25.31%.
Margin is in line with the healthcare peer median
The 21.75% operating margin matched the median reported by 37 healthcare peers. Compared with Q1FY27, this marks a sequential decline in margin, but the available trend covers only the preceding quarter and does not establish a longer multi-quarter pattern.
Management highlighted capacity and therapeutic expansion
The company said an additional 400 Mn tablets of commercial production commenced at its Gujarat facility on 22 December 2025. Management said the Indian pharmaceutical market is projected to grow at a CAGR of 8-9% through FY30 and that chronic therapies are expected to grow faster than acute therapies. The presentation also said the company plans to expand into nephrology, CNS, rheumatology, dermatology and gastroenterology, alongside new products for unmet needs.
Results were filed after market close
Corona Remedies filed these consolidated Q2FY27 results after market close on 30 October 2026. There is no post-results market reaction to assess yet.
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 | ₹441 cr | ₹422 cr | +4.44% |
| Other income | ₹3 cr | ₹3 cr | -17.41% |
| Expenses | ₹345 cr | ₹329 cr | +4.83% |
| Operating profit | ₹96 cr | ₹93 cr | +3.03% |
| Operating margin (%) | 21.75% | 22.05% | — |
| Interest | ₹3 cr | ₹3 cr | +2.23% |
| Depreciation | ₹15 cr | ₹13 cr | +13.75% |
| Profit before tax | ₹81 cr | ₹80 cr | +0.49% |
| Tax | ₹20 cr | ₹20 cr | +0.94% |
| Net profit | ₹60 cr | ₹60 cr | +0.33% |
| EPS (₹) | ₹9.86 | ₹9.83 | +0.31% |
Operating margin of 21.75% compares with a Healthcare sector median of 21.75% across 37 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Guidance & outlook
- The Indian pharmaceutical market is projected to grow at a CAGR of 8-9% through FY30.
- The chronic segment is expected to grow faster than the acute segment.
Expansion
- An additional 400 million tablets of commercial production commenced at the Gujarat facility on 22 December 2025.
- The company plans to expand into additional therapeutic areas including nephrology, CNS, rheumatology, dermatology and gastroenterology.
New products
- The company plans targeted product expansions in focused therapeutic segments.
New initiatives
- The company plans to launch products addressing unmet patient needs within existing therapeutic areas.
- The company operates a 1.3 MW solar plant at Bhayla and a 4.25 MW solar park spread across 11.9 acres.
- The Bhayla plant has an effluent treatment plant designed to achieve zero liquid discharge.
Competition
- India contributes 97.1% of H1FY27 revenue, and the company climbed six ranks in three years.
What to watch
- Whether operating margin holds above 21.75% in the next quarter.
- Whether expense growth falls below the Q2FY27 revenue growth rate of 4.44%.
- Whether net profit growth improves from 0.33% QoQ as depreciation growth was 13.75%.