Net profit falls 70.25% as other income drops sharply
The consolidated operating business improved modestly, but lower other income outweighed the 11.27% sequential revenue growth.
Filed 27 Oct 2026, 12:47 IST · Indoco Remedies Ltd (INDOCO)
Key takeaways
- Consolidated operating profit rose +13.19% QoQ as revenue grew +11.27% and expenses +11.08%, lifting operating margin by 0.16 percentage points.
- Net profit fell -70.25% QoQ after other income dropped -60.70%, with other income equal to 161.68% of pre-tax profit.
- At 8.93%, operating margin was 12.03 percentage points below the 20.96% median for 18 reported Healthcare peers.
Price around the results
Revenue growth lifted operating profit, not reported earnings
Consolidated revenue grew +11.27% QoQ, while operating profit increased +13.19%. This translated into only a 0.16 percentage-point improvement in operating margin, leaving the wider earnings decline to be explained below the operating line.
Other income dominated pre-tax profit
Expenses grew +11.08%, slightly slower than revenue, so costs did not dilute the operating margin this quarter. However, other income fell -60.70% QoQ and accounted for 161.68% of pre-tax profit in the current quarter, while the tax rate rose 3.71 percentage points to 19.51%. The combination drove pre-tax profit down -68.88% and net profit down -70.25%.
Margin remains well below Healthcare peers
Indoco Remedies' 8.93% operating margin was 12.03 percentage points below the 20.96% median among 18 Healthcare peers that had reported the quarter. The company ranked second from the bottom on this measure, making the small QoQ margin improvement less significant in sector context.
Initial market response was limited
The stock was down -0.14% on the reaction day, after opening with a -0.23% gap and underperforming the broader market by -0.12%. Volume was 1.4x the reference level, but the price move remained modest despite the sharp decline in net profit.
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 | ₹520 cr | ₹468 cr | +11.27% |
| Other income | ₹39 cr | ₹100 cr | -60.70% |
| Expenses | ₹474 cr | ₹426 cr | +11.08% |
| Operating profit | ₹46 cr | ₹41 cr | +13.19% |
| Operating margin (%) | 8.93% | 8.77% | — |
| Interest | ₹27 cr | ₹28 cr | -4.88% |
| Depreciation | ₹34 cr | ₹35 cr | -0.26% |
| Profit before tax | ₹24 cr | ₹78 cr | -68.88% |
| Tax | ₹5 cr | ₹12 cr | -61.56% |
| Net profit | ₹19 cr | ₹65 cr | -70.25% |
| EPS (₹) | ₹2.11 | ₹7.09 | -70.24% |
Operating margin of 8.93% compares with a Healthcare sector median of 20.96% across 18 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -0.14% | -0.12% |
Volume on the results session was 1.40× its 20-day average.
What to watch
- Whether operating margin holds above 8.93% next quarter.
- Whether expense growth stays at or below the +11.27% revenue growth rate, after rising +11.08% this quarter.
- Whether the tax rate moves from 19.51% and other income remains a smaller influence on pre-tax profit than its 161.68% share this quarter.