Gland Pharma's margin drops 3.44 points sequentially despite steady revenue
Year-on-year profit rose 35.33% as revenue grew faster than expenses, but other income was 12.06% of pre-tax profit.
Filed 10 Aug 2026, 16:19 IST · after market close · Gland Pharma Ltd (GLAND)
Key takeaways
- Standalone net profit grew 35.33% year on year, but fell 13.33% sequentially.
- Operating margin expanded 2.26 percentage points year on year but narrowed 3.44 percentage points from Q4FY26 as expenses grew 7.86% against revenue growth of 1.99%.
- Other income contributed 12.06% of pre-tax profit, while operating margin remained 13.85 percentage points above the Healthcare peer median.
Price around the results
Year-on-year growth held, but Q4 momentum reversed
Gland Pharma's standalone revenue grew 23.85% year on year, supporting a 35.33% increase in net profit as operating profit rose 31.95%. Sequentially, revenue was nearly flat at +1.99%, while expenses rose +7.86%, pushing operating profit down 6.74% and net profit down 13.33%. The result was filed after market close.
Higher sequential costs erased part of the margin recovery
Operating margin narrowed 3.44 percentage points sequentially because costs grew faster than revenue. The year-on-year comparison was better: revenue grew +23.85% against expense growth of +19.58%, lifting margin by 2.26 percentage points. Interest expense fell 88.82% sequentially and 90.71% year on year, partly offsetting the weaker operating performance.
Margin remains above peers despite the Q4 pullback
Operating margin had risen from 34.54% in Q1FY26 to 40.24% in Q4FY26 before easing to 36.80% in Q1FY27, marking a sequential reversal after the recovery through FY26. Among 53 Healthcare peers that have reported, the company's margin was 13.85 percentage points above the 22.95% median. Other income was 12.06% of pre-tax profit, so reported profit also included a meaningful non-operating contribution.
No immediate market reaction is available
The filing came after market close, so no post-result stock move is reported. Across the last eight results, the stock rose four times and fell four times, with a median absolute move of 4.87%.
Q1FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,287 cr | ₹1,262 cr | +1.99% | +23.85% |
| Other income | ₹59 cr | ₹106 cr | -44.70% | +7.45% |
| Expenses | ₹813 cr | ₹754 cr | +7.86% | +19.58% |
| Operating profit | ₹474 cr | ₹508 cr | -6.74% | +31.95% |
| Operating margin (%) | 36.80% | 40.24% | — | — |
| Interest | ₹1 cr | ₹6 cr | -88.82% | -90.71% |
| Depreciation | ₹44 cr | ₹43 cr | +1.95% | +0.41% |
| Profit before tax | ₹488 cr | ₹565 cr | -13.65% | +34.58% |
| Tax | ₹123 cr | ₹144 cr | -14.58% | +32.41% |
| Net profit | ₹364 cr | ₹420 cr | -13.33% | +35.33% |
| EPS (₹) | ₹22.11 | ₹25.52 | -13.36% | +35.31% |
Operating margin of 36.80% compares with a Healthcare sector median of 22.95% across 53 peers that have reported Q1FY27.
What to watch
- Whether operating margin recovers from 36.80% toward the 40.24% recorded in Q4FY26.
- Whether expense growth moderates from +7.86% sequentially relative to revenue growth of +1.99%.
- Whether other income's 12.06% share of pre-tax profit declines in the next quarter.