Higher revenue could not lift Fermenta's quarterly profit
Revenue growth outpaced expense growth, but a 46.85% rise in interest costs and lower other income pulled down pre-tax and net profit.
Filed 05 Nov 2026, 12:58 IST · Fermenta Biotech Ltd (FERMENTA)
Key takeaways
- Consolidated revenue rose 8.91% QoQ while expenses grew 8.48%, lifting operating margin by 0.33 percentage points to 15.15%.
- Net profit declined 0.94% QoQ as interest expense jumped 46.85% and other income fell 29.52%.
- Fermenta's 15.15% operating margin was 6.53 percentage points below the 21.68% median for 82 reporting healthcare peers.
Price around the results
Revenue growth translated into a modest margin gain
Consolidated revenue increased 8.91% QoQ to Rs 132.67 cr, while expenses grew slightly slower at 8.48%. That operating leverage lifted operating profit by 11.41% and expanded operating margin by 0.33 percentage points to 15.15%.
Interest costs and other income weakened profit quality
The operating improvement did not flow through to pre-tax profit, which declined 3.00% QoQ as interest expense rose 46.85% to Rs 3.73 cr. Other income fell 29.52%, although it still accounted for 21.61% of pre-tax profit. A 1.35 percentage-point reduction in the tax rate partly cushioned the impact, but net profit still fell 0.94% to Rs 9.44 cr.
Operating margin remained below the healthcare peer median
Fermenta's 15.15% operating margin was below the 21.68% median among 82 healthcare companies that had reported the same quarter. The company ranked 16th from the bottom on this measure, leaving a 6.53 percentage-point gap to the sector median.
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 | ₹133 cr | ₹122 cr | +8.91% |
| Other income | ₹3 cr | ₹4 cr | -29.52% |
| Expenses | ₹113 cr | ₹104 cr | +8.48% |
| Operating profit | ₹20 cr | ₹18 cr | +11.41% |
| Operating margin (%) | 15.15% | 14.82% | — |
| Interest | ₹4 cr | ₹3 cr | +46.85% |
| Depreciation | ₹5 cr | ₹5 cr | +0.19% |
| Profit before tax | ₹14 cr | ₹15 cr | -3.00% |
| Tax | ₹5 cr | ₹5 cr | -6.78% |
| Net profit | ₹9 cr | ₹10 cr | -0.94% |
| EPS (₹) | ₹3.40 | ₹3.40 | +0.00% |
Operating margin of 15.15% compares with a Healthcare sector median of 21.68% across 82 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 15.15% in the next quarter.
- Whether interest expense reverses its 46.85% QoQ increase.
- Whether other income remains a significant contributor to pre-tax profit after accounting for 21.61% this quarter.