Glenmark profit surges, but operating margin slips for a third quarter
Year-on-year costs grew slower than revenue, but sequentially expenses outpaced sales and the tax rate rose 2.67 percentage points.
Filed 31 Jul 2026, 18:42 IST · after market close · Glenmark Pharmaceuticals Ltd (GLENMARK)
Key takeaways
- Consolidated revenue grew 23.10% year on year, while slower expense growth lifted operating margin by 2.25 percentage points.
- Net profit rose 927.95% year on year, helped by the tax rate falling 25.89 percentage points and other income contributing 10.22% of pre-tax profit.
- Operating margin declined for a third straight quarter to 20.03%, leaving Glenmark 2.92 percentage points below the 22.95% Healthcare peer median.
Price around the results
Year-on-year growth lifted operating profit
Glenmark reported consolidated revenue growth of 23.10% year on year, while expenses grew 19.74%. The slower cost growth increased operating profit by 38.63% and widened operating margin by 2.25 percentage points. Net profit growth was amplified by the low year-ago base, when profit before tax was Rs 95.58 cr.
Sequential margin pressure returned
Revenue increased 6.57% sequentially, but expenses grew 6.84%, causing operating margin to narrow by 0.19 percentage points. Interest expense rose 26.76% and the tax rate increased 2.67 percentage points, limiting the conversion of operating profit into net profit. Other income accounted for 10.22% of pre-tax profit, so reported earnings were not entirely operational.
Operating margin has fallen for three quarters
Operating margin has declined from 39.02% in Q2FY26 to 22.30% in Q3FY26, 20.22% in Q4FY26 and 20.03% in Q1FY27. The current margin was 2.92 percentage points below the 22.95% median for the 27 Healthcare peers that had reported the quarter. Glenmark ranked 11th from the bottom on this comparison.
No market reaction yet after the late filing
The results were filed after market close, so there is no post-result market move to assess yet. In the eight recent result reactions available, the stock fell six times and rose twice, with a median absolute move of 3.46%.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹4,018 cr | ₹3,771 cr | +6.57% | +23.10% |
| Other income | ₹66 cr | ₹-184 cr | — | — |
| Expenses | ₹3,214 cr | ₹3,008 cr | +6.84% | +19.74% |
| Operating profit | ₹805 cr | ₹763 cr | +5.53% | +38.63% |
| Operating margin (%) | 20.03% | 20.22% | — | — |
| Interest | ₹54 cr | ₹43 cr | +26.76% | -7.26% |
| Depreciation | ₹173 cr | ₹148 cr | +17.08% | +33.28% |
| Profit before tax | ₹643 cr | ₹388 cr | +65.92% | +573.14% |
| Tax | ₹161 cr | ₹86 cr | +85.73% | +230.37% |
| Net profit | ₹483 cr | ₹301 cr | +60.24% | +927.95% |
| EPS (₹) | ₹17.11 | ₹10.68 | +60.21% | +930.72% |
Operating margin of 20.03% compares with a Healthcare sector median of 22.95% across 27 peers that have reported Q1FY27.
What to watch
- Whether operating margin recovers from 20.03% after three consecutive quarterly declines.
- Whether expenses continue to grow no faster than revenue after rising 6.84% sequentially against 6.57% revenue growth.
- Whether other income remains near 10.22% of pre-tax profit and how that affects earnings quality.