Operating profit rises +43.37% QoQ as costs lag revenue
Net profit fell -78.67% QoQ after other income dropped, despite a 3.87 percentage-point expansion in operating margin.
Filed 05 Nov 2026, 11:15 IST · Hester Biosciences Ltd (HESTERBIO)
Key takeaways
- Consolidated operating profit rose +43.37% QoQ as revenue growth of +26.76% outpaced expense growth of +19.79%.
- Net profit fell -78.67% QoQ because other income dropped from Rs 89.03 cr in Q1FY27 to Rs 3.85 cr in Q2FY27.
- Operating margin expanded 3.87 percentage points to 33.36%, which was 11.66 percentage points above the 21.70% Healthcare peer median.
Price around the results
Revenue momentum lifted consolidated operating profit
Hester Biosciences’ consolidated revenue increased +26.76% QoQ, while expenses grew at a slower +19.79% pace. That operating leverage lifted operating profit by +43.37% and expanded the operating margin by 3.87 percentage points to 33.36%.
Other income made the profit comparison unusually weak
Net profit fell -78.67% QoQ because other income declined from Rs 89.03 cr in Q1FY27 to Rs 3.85 cr in Q2FY27; other income still contributed 14.56% of Q2FY27 pre-tax profit. The tax rate also rose 17.14 percentage points to 22.01%, further reducing the conversion of operating gains into net profit.
Operating margin stayed above the Healthcare peer median
The 33.36% operating margin was 11.66 percentage points above the 21.70% median for the 73 Healthcare peers that had reported the same quarter. The sequential improvement came alongside a 3.25% decline in interest expense, while depreciation increased only 0.57%.
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 | ₹98 cr | ₹77 cr | +26.76% |
| Other income | ₹4 cr | ₹89 cr | -95.68% |
| Expenses | ₹65 cr | ₹54 cr | +19.79% |
| Operating profit | ₹33 cr | ₹23 cr | +43.37% |
| Operating margin (%) | 33.36% | 29.49% | — |
| Interest | ₹3 cr | ₹3 cr | -3.25% |
| Depreciation | ₹7 cr | ₹7 cr | +0.57% |
| Profit before tax | ₹26 cr | ₹102 cr | -73.99% |
| Tax | ₹6 cr | ₹5 cr | +17.58% |
| Net profit | ₹21 cr | ₹97 cr | -78.67% |
| EPS (₹) | ₹23.94 | ₹113.71 | -78.95% |
Operating margin of 33.36% compares with a Healthcare sector median of 21.70% across 73 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 33.36% after the 3.87 percentage-point QoQ expansion.
- Whether other income remains closer to Rs 3.85 cr than the Rs 89.03 cr recorded in Q1FY27.
- Whether the tax rate stays near 22.01% after rising 17.14 percentage points QoQ.