Gland Pharma profit nearly doubled as operating margin reached 29.44%
Revenue growth outpaced expense growth, but other income contributed 22.04% of pre-tax profit and the stock's reaction was unusually large.
Filed 15 May 2026, 16:20 IST · after market close · Gland Pharma Ltd (GLAND)
Key takeaways
- Consolidated net profit rose 96.57% year on year to Rs 366.68 cr as revenue grew 22.31% and expenses grew 14.14%.
- Operating margin expanded 5.05 percentage points year on year to 29.44%, extending its rise from 21.11% in Q2FY26 to 25.65% in Q3FY26.
- The stock gained 15.43% on the first reaction day, well above the 4.87% median absolute move after the company's previous eight results.
Price around the results
Profit growth accelerated on operating leverage
Consolidated revenue rose 22.31% year on year and 2.80% sequentially, while expenses increased 14.14% year on year and fell 2.44% sequentially. That gap lifted operating profit 47.63% year on year and 17.97% sequentially, taking net profit up 96.57% year on year and 40.23% sequentially. Healthcare peers reporting the same quarter had a median operating margin of 23.38%; Gland Pharma's 29.44% was 6.06 percentage points higher.
Margin recovery continued, with other income worth watching
Operating margin widened 5.05 percentage points year on year and 3.79 percentage points sequentially because costs did not grow as fast as revenue. The margin has now risen for a third straight quarter, from 21.11% in Q2FY26 to 25.65% in Q3FY26 and 29.44% in Q4FY26. Other income rose 153.17% year on year and represented 22.04% of pre-tax profit, while the tax rate fell 7.79 percentage points year on year; both factors supported reported profit growth.
The market reaction was far outside the stock's usual range
The stock rose 15.43% on the first reaction day and 24.92% after five sessions, with trading volume at 47.98 times its reference level on the first day. That was unusually large against the 4.87% median absolute move after the previous eight results, when four reactions were positive and four were negative. The five-day move was also 23.27% above the sector benchmark.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹1,743 cr | ₹1,695 cr | +2.80% | +22.31% |
| Other income | ₹111 cr | ₹39 cr | +187.07% | +153.17% |
| Expenses | ₹1,230 cr | ₹1,260 cr | -2.44% | +14.14% |
| Operating profit | ₹513 cr | ₹435 cr | +17.97% | +47.63% |
| Operating margin (%) | 29.44% | 25.65% | — | — |
| Interest | ₹10 cr | ₹4 cr | +155.22% | +34.63% |
| Depreciation | ₹109 cr | ₹108 cr | +0.95% | +13.47% |
| Profit before tax | ₹506 cr | ₹362 cr | +39.67% | +75.42% |
| Tax | ₹139 cr | ₹101 cr | +38.22% | +36.67% |
| Net profit | ₹367 cr | ₹261 cr | +40.23% | +96.57% |
| EPS (₹) | ₹22.26 | ₹15.87 | +40.26% | +96.64% |
Operating margin of 29.44% 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 | +15.43% | +15.40% |
| Next session | +20.49% | — |
| 5 sessions | +24.92% | +23.27% |
| 15 sessions | +22.49% | — |
| 30 sessions | +31.95% | — |
Volume on the results session was 47.98× its 20-day average.
What to watch
- Whether operating margin holds above 29.44% after its three-quarter recovery.
- Whether other income remains below or above its current 22.04% share of pre-tax profit.
- Whether quarterly revenue growth continues to outpace expense growth, which was 22.31% versus 14.14% year on year.