Costs outpaced revenue, pulling Indraprastha Medical's margin lower
Standalone net profit fell 4.06% sequentially, while operating margin remained 1.14 percentage points below the healthcare peer median.
Filed 29 Oct 2026, 16:31 IST · after market close · Indraprastha Medical Corporation Ltd (INDRAMEDCO)
Key takeaways
- Standalone net profit fell 4.06% sequentially as expenses grew 2.78%, faster than revenue growth of 1.65%.
- Operating margin narrowed 0.89 percentage points to 18.76% because costs outpaced revenue.
- Other income contributed 11.86% of pre-tax profit, making earnings quality an important consideration this quarter.
Price around the results
Revenue growth did not translate into profit growth
Standalone revenue rose 1.65% sequentially, but expenses increased 2.78%, reducing operating profit by 2.97% and net profit by 4.06%. Pre-tax profit also fell 3.68%, showing that the quarter's modest revenue growth was outweighed by cost escalation. The results were filed after market close.
Cost pressure narrowed the operating margin
Operating margin declined 0.89 percentage points to 18.76% as expenses grew faster than revenue. Depreciation increased 4.25% sequentially, while interest rose 0.61%; the tax rate also increased 0.31 percentage points to 25.66%. Other income was 11.86% of pre-tax profit, so reported earnings were not derived entirely from operations.
Margin trailed the healthcare peer median
Among 31 healthcare peers that had reported the same quarter, the median operating margin was 19.90%, leaving Indraprastha Medical 1.14 percentage points below the sector median. Sequentially, the company moved from a 19.65% operating margin in Q1FY27 to 18.76% in Q2FY27; the available comparison shows a quarter-on-quarter decline rather than a longer multi-quarter trend.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹413 cr | ₹406 cr | +1.65% |
| Other income | ₹9 cr | ₹8 cr | +1.54% |
| Expenses | ₹335 cr | ₹326 cr | +2.78% |
| Operating profit | ₹77 cr | ₹80 cr | -2.97% |
| Operating margin (%) | 18.76% | 19.65% | — |
| Interest | ₹2 cr | ₹2 cr | +0.61% |
| Depreciation | ₹12 cr | ₹12 cr | +4.25% |
| Profit before tax | ₹72 cr | ₹75 cr | -3.68% |
| Tax | ₹18 cr | ₹19 cr | -2.53% |
| Net profit | ₹54 cr | ₹56 cr | -4.06% |
| EPS (₹) | ₹5.84 | ₹6.09 | -4.11% |
Operating margin of 18.76% compares with a Healthcare sector median of 19.90% across 31 peers that have reported Q2FY27.
What to watch
- Whether operating margin recovers from 18.76%.
- Whether expense growth slows from 2.78% sequentially.
- Whether other income remains a material contributor relative to the 11.86% share of pre-tax profit.