Revenue grows 20.52%, but operating margin falls to 10.15%
Costs grew faster than revenue, while a higher tax rate and increased finance and depreciation charges drove a 74.15% YoY fall in consolidated net profit.
Filed 13 Nov 2026, 20:08 IST · after market close · Jubilant Pharmova Ltd (JUBLPHARMA)
Key takeaways
- Consolidated revenue grew 20.52% YoY, but expenses grew 31.05%, cutting operating margin by 7.21 percentage points to 10.15%.
- Net profit fell 74.15% YoY as interest rose 16.33%, depreciation rose 28.63% and the tax rate increased 12.77 percentage points.
- Operating margin declined for a third straight quarter to 10.15%, 11.49 percentage points below the Healthcare peer median.
Price around the results
Revenue growth did not translate into operating profit
Jubilant Pharmova's consolidated revenue grew 20.52% YoY and 6.31% QoQ, but operating profit fell 29.55% YoY and 3.02% QoQ. The divergence reflects expenses growing 31.05% YoY and 7.47% QoQ, faster than revenue in both comparisons.
Higher costs and tax rate weakened profit quality
Operating margin narrowed 7.21 percentage points YoY and 0.97 percentage points QoQ as costs outpaced revenue. Interest increased 16.33% YoY and 7.75% QoQ, while depreciation rose 28.63% YoY and 5.89% QoQ. The tax rate rose to 49.76%, up 12.77 percentage points YoY and 15.04 percentage points QoQ; other income contributed 23.34% of profit before tax, so reported profit also had a meaningful non-operating component.
Margin has declined for three consecutive quarters
Operating margin fell from 17.36% in Q2FY26 to 13.64% in Q3FY26, 14.82% in Q4FY26, 11.12% in Q1FY27 and 10.15% in Q2FY27. Among 103 Healthcare peers that have reported, the company's margin was 11.49 percentage points below the 21.64% median and ranked it among the 15 lowest.
No post-results reaction yet
The consolidated results were filed after market close, so there is no post-results market reaction to assess yet. Across the stock's eight recent result sessions, it rose four times and fell four times, with a median absolute move of 1.56%, indicating a mixed and usually modest response.
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 | YoY |
|---|---|---|---|---|
| Revenue | ₹2,370 cr | ₹2,229 cr | +6.31% | +20.52% |
| Other income | ₹14 cr | ₹20 cr | -27.64% | +269.23% |
| Expenses | ₹2,130 cr | ₹1,981 cr | +7.47% | +31.05% |
| Operating profit | ₹241 cr | ₹248 cr | -3.02% | -29.55% |
| Operating margin (%) | 10.15% | 11.12% | — | — |
| Interest | ₹58 cr | ₹54 cr | +7.75% | +16.33% |
| Depreciation | ₹135 cr | ₹127 cr | +5.89% | +28.63% |
| Profit before tax | ₹62 cr | ₹86 cr | -28.59% | -67.58% |
| Tax | ₹31 cr | ₹30 cr | +2.33% | -56.39% |
| Net profit | ₹31 cr | ₹56 cr | -45.04% | -74.15% |
| EPS (₹) | ₹1.97 | ₹3.57 | -44.82% | -74.04% |
Operating margin of 10.15% compares with a Healthcare sector median of 21.64% across 103 peers that have reported Q2FY27.
What to watch
- Whether operating margin stabilises after falling to 10.15% for a third straight quarter.
- Whether the tax rate moves away from 49.76% after rising 15.04 percentage points QoQ.
- Whether expenses grow more slowly than revenue after a 31.05% YoY increase versus 20.52% revenue growth.