Haleos Labs margin falls as costs outpace revenue growth
Operating margin fell 3.39 percentage points qoq, while a lower tax rate limited the net-profit decline to 4.35%.
Filed 11 Nov 2026, 14:02 IST · Haleos Labs Limited (HALEOSLABS)
Key takeaways
- Revenue rose 25.28% sequentially, but expenses grew 30.15%, driving an 8.77% fall in operating profit.
- Operating margin narrowed 3.39 percentage points to 9.11%, versus a 21.65% median for 90 reported healthcare peers.
- Net profit declined 4.35% as profit before tax fell 41.57%, partly offset by a 34.11-percentage-point drop in the tax rate.
Price around the results
Revenue growth did not convert into operating profit
Haleos Labs’ consolidated revenue increased 25.28% sequentially, but expenses rose faster at 30.15%, leaving operating profit down 8.77%. The mismatch points to weaker operating leverage in Q2FY27 despite higher sales.
Margin pressure was amplified by higher interest
Operating margin narrowed 3.39 percentage points to 9.11% as costs outpaced revenue, while interest expense increased 13.16% sequentially. The lower tax rate helped limit the impact on net profit: tax fell from 46.50% of profit before tax to 12.39%, and other income contributed only 3.98% of profit before tax.
Margin remains below healthcare peers
Haleos Labs’ 9.11% operating margin was 12.54 percentage points below the 21.65% median among 90 healthcare peers that had reported. It ranked 10th from the bottom on this measure, making the margin gap more notable than the sequential revenue increase.
Stock reaction was modest despite heavier volume
The stock fell 0.24% on November 11, with a 2.18-times volume ratio and a 1.08% relative decline. The reported move was small in absolute terms, while the higher volume indicates increased trading activity around the results.
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 | ₹91 cr | ₹73 cr | +25.28% |
| Other income | ₹0 cr | ₹0 cr | -82.61% |
| Expenses | ₹83 cr | ₹64 cr | +30.15% |
| Operating profit | ₹8 cr | ₹9 cr | -8.77% |
| Operating margin (%) | 9.11% | 12.50% | — |
| Interest | ₹2 cr | ₹2 cr | +13.16% |
| Depreciation | ₹4 cr | ₹4 cr | +0.24% |
| Profit before tax | ₹2 cr | ₹3 cr | -41.57% |
| Tax | ₹0 cr | ₹2 cr | -84.38% |
| Net profit | ₹2 cr | ₹2 cr | -4.35% |
| EPS (₹) | ₹10.77 | ₹8.75 | +23.09% |
Operating margin of 9.11% compares with a Healthcare sector median of 21.65% across 90 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -0.24% | -1.08% |
Volume on the results session was 2.18× its 20-day average.
What to watch
- Whether operating margin recovers from 9.11% after the 3.39-percentage-point sequential decline.
- Whether expense growth falls below the 30.15% sequential pace and the 25.28% revenue growth rate.
- Whether interest expense moves back below the Q2FY27 level after rising 13.16% sequentially.