Jubilant Pharmova margin drops to 11.12% as costs outpace revenue
Revenue grew +17.29% YoY, but expenses rose +22.98%; net profit fell -44.98% after an after-close filing.
Filed 10 Aug 2026, 19:16 IST · after market close · Jubilant Pharmova Ltd (JUBLPHARMA)
Key takeaways
- Consolidated operating margin fell 3.70 percentage points sequentially to 11.12% as expenses rose while revenue declined.
- Revenue grew +17.29% YoY, but faster expense growth of +22.98% drove operating profit down -14.36%.
- Net profit fell -44.98% YoY to Rs 56.4 cr, with other income contributing 23.03% of pre-tax profit.
Price around the results
Revenue growth did not convert into profit
Jubilant Pharmova reported consolidated revenue growth of +17.29% YoY, but operating profit declined -14.36% to Rs 248.0 cr. Expenses grew +22.98%, faster than revenue, compressing operating margin by 4.12 percentage points YoY. Sequentially, revenue fell -2.65% while operating profit dropped -26.91%.
Higher depreciation and tax rate added to the squeeze
Depreciation increased +29.77% YoY and +8.99% sequentially, while interest expense rose +10.61% YoY despite falling -4.07% sequentially. The tax rate increased 1.11 percentage points YoY and 2.50 percentage points sequentially, adding to the decline in pre-tax profit. Other income rose +67.23% YoY and +99.00% sequentially, accounting for 23.03% of pre-tax profit and making earnings quality an important consideration.
Operating margin is at a six-quarter low
The 11.12% operating margin was below each of the previous five quarters shown and followed a sequential decline of 3.70 percentage points. It also sits 11.83 percentage points below the 22.95% median for 57 Healthcare peers that have reported, placing Jubilant Pharmova fifth from the bottom. Net profit fell -52.72% sequentially and -44.98% YoY, while EPS declined -52.72% sequentially and -44.99% YoY.
No post-result market reaction yet
The consolidated results were filed after market close, so there is no post-result stock reaction to assess yet. Across the last eight result reactions, the stock rose three times and fell five times, with a median absolute move of 1.81%.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹2,229 cr | ₹2,290 cr | -2.65% | +17.29% |
| Other income | ₹20 cr | ₹10 cr | +99.00% | +67.23% |
| Expenses | ₹1,981 cr | ₹1,951 cr | +1.57% | +22.98% |
| Operating profit | ₹248 cr | ₹339 cr | -26.91% | -14.36% |
| Operating margin (%) | 11.12% | 14.82% | — | — |
| Interest | ₹54 cr | ₹57 cr | -4.07% | +10.61% |
| Depreciation | ₹127 cr | ₹117 cr | +8.99% | +29.77% |
| Profit before tax | ₹86 cr | ₹176 cr | -50.91% | -44.04% |
| Tax | ₹30 cr | ₹57 cr | -47.09% | -42.20% |
| Net profit | ₹56 cr | ₹119 cr | -52.72% | -44.98% |
| EPS (₹) | ₹3.57 | ₹7.55 | -52.72% | -44.99% |
Operating margin of 11.12% compares with a Healthcare sector median of 22.95% across 57 peers that have reported Q1FY27.
What to watch
- Whether operating margin recovers from the six-quarter low of 11.12%.
- Whether expenses grow slower than revenue after rising +22.98% YoY versus revenue growth of +17.29%.
- Whether other income's 23.03% share of pre-tax profit declines.