GlaxoSmithKline's profit rose 5.70%, but the stock fell 4.17% in five sessions
Year-on-year margin improved as expenses grew slower than revenue, while sequential pressure and lower other income tempered the quarter.
Filed 13 May 2026, 15:00 IST · Glaxosmithkline Pharmaceuticals Ltd (GLAXO)
Key takeaways
- Consolidated net profit rose 5.70% year on year to Rs 277.86 cr as revenue grew 2.15% while expenses increased 0.50%.
- Operating margin expanded 1.06 percentage points year on year to 35.26%, but narrowed 0.40 percentage points sequentially as costs fell less than revenue.
- The stock was down 4.17% five sessions after the results, a larger move than its 3.17% median absolute reaction to the last eight result announcements.
Price around the results
Profit growth came from operating leverage
Consolidated revenue grew 2.15% year on year, while expenses rose only 0.50%, lifting operating profit 5.32%. The lower tax rate, at 25.53% versus 26.69% a year earlier, also helped net profit grow faster than pre-tax profit. Other income contributed 9.64% of pre-tax profit, so earnings were not entirely operating-led.
Sequential momentum weakened after Q3's peak
Revenue fell 4.41% sequentially, while expenses declined 3.81%, causing operating margin to narrow by 0.40 percentage points. Other income fell 28.24% and pre-tax profit declined 6.71%, although lower interest and depreciation partly offset the pressure. Margin had improved from 31.20% in Q1FY26 to 35.66% in Q3FY26 before this quarter's decline.
Margin remained above the healthcare peer median
GlaxoSmithKline's 35.26% operating margin was 11.88 percentage points above the 23.38% median for the 48 healthcare peers that had reported the quarter. This keeps the company among the higher-margin reporters despite the sequential contraction.
Management highlighted respiratory care and Shingrix uptake
The presentation said more than 3.3k severe asthma patients benefited from the company's respiratory portfolio in Q4 FY26. Management also reported 55,000 Shingrix prescriptions, up 56% year on year, providing a specific growth marker within the quarter's portfolio.
The market reaction was weaker than the initial move suggests
The stock fell 1.52% on the results date and was down 4.17% after five sessions, versus a 3.17% median absolute move across the last eight result reactions. The five-session decline was therefore more pronounced than the stock's usual post-results response, while the stock remained down 3.84% after 30 sessions.
Q4FY26 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹995 cr | ₹1,041 cr | -4.41% | +2.15% |
| Other income | ₹36 cr | ₹50 cr | -28.24% | -11.63% |
| Expenses | ₹644 cr | ₹670 cr | -3.81% | +0.50% |
| Operating profit | ₹351 cr | ₹371 cr | -5.50% | +5.32% |
| Operating margin (%) | 35.26% | 35.66% | — | — |
| Interest | ₹1 cr | ₹1 cr | -48.74% | +5.17% |
| Depreciation | ₹13 cr | ₹20 cr | -35.19% | -10.53% |
| Profit before tax | ₹373 cr | ₹400 cr | -6.71% | +4.05% |
| Tax | ₹95 cr | ₹104 cr | -8.70% | -0.48% |
| Net profit | ₹278 cr | ₹296 cr | -6.01% | +5.70% |
| EPS (₹) | ₹16.40 | ₹16.54 | -0.85% | +5.67% |
Operating margin of 35.26% 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 | -1.52% | -1.66% |
| Next session | -1.31% | — |
| 5 sessions | -4.17% | -5.36% |
| 15 sessions | -11.52% | — |
| 30 sessions | -3.84% | — |
Volume on the results session was 1.85× 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
- Severe asthma patients benefited from the company's respiratory portfolio in Q4 FY26.
- Shingrix prescriptions reached 55,000, representing 56% year-on-year growth.
What to watch
- Whether operating margin recovers from 35.26% after the 0.40-percentage-point sequential decline.
- Whether Shingrix prescriptions build on the 55,000 reported in Q4FY26.
- Whether other income remains near 9.64% of pre-tax profit or becomes a smaller earnings contributor.