Costs outpace revenue, squeezing Kopran's standalone margin
Revenue rose +38.81% qoq, but expenses grew +41.44%; lower other income and a higher tax rate pulled net profit down -6.40%.
Filed 03 Nov 2026, 13:45 IST · Kopran Ltd (KOPRAN)
Key takeaways
- Kopran's standalone revenue rose +38.81% qoq, but expenses grew faster at +41.44%, cutting operating margin by 1.62 percentage points.
- Net profit fell -6.40% qoq despite operating profit growth of +21.99%, as other income declined -70.45% and the tax rate rose 1.80 percentage points.
- Kopran's 11.85% operating margin was 9.79 percentage points below the 21.64% median for 47 reported Healthcare peers, placing it sixth from the bottom.
Price around the results
Revenue growth did not fully reach operating profit
Kopran's standalone Q2FY27 revenue grew +38.81% qoq, while operating profit increased +21.99%. Expenses grew faster than revenue at +41.44%, so operating margin narrowed to 11.85%, down 1.62 percentage points from Q1FY27.
Lower other income and higher tax weighed on profit
Net profit declined -6.40% qoq even as operating profit rose, because other income fell -70.45% and interest expense increased +12.10%. Other income still accounted for 10.23% of pre-tax profit, while the tax rate rose 1.80 percentage points to further reduce conversion into net profit.
Margin remains below the Healthcare peer set
Kopran's 11.85% operating margin was 9.79 percentage points below the 21.64% median among 47 Healthcare peers that had reported the quarter. The available quarter trend shows a sequential margin decline from 13.47% in Q1FY27, rather than an improvement alongside revenue growth.
Management points to capacity and process initiatives
Management said capacity expansion is a growth and sustainability imperative, including a planned API and R&D facility at Panoli, Gujarat. The company also said it plans to develop API intermediates, improve yields, automate formulation packing lines and pursue new regulatory filings, while reducing dependence on China.
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 | ₹87 cr | ₹63 cr | +38.81% |
| Other income | ₹1 cr | ₹3 cr | -70.45% |
| Expenses | ₹77 cr | ₹54 cr | +41.44% |
| Operating profit | ₹10 cr | ₹8 cr | +21.99% |
| Operating margin (%) | 11.85% | 13.47% | — |
| Interest | ₹1 cr | ₹1 cr | +12.10% |
| Depreciation | ₹1 cr | ₹1 cr | +2.96% |
| Profit before tax | ₹8 cr | ₹9 cr | -4.21% |
| Tax | ₹2 cr | ₹2 cr | +2.91% |
| Net profit | ₹6 cr | ₹7 cr | -6.40% |
| EPS (₹) | ₹1.30 | ₹1.39 | -6.47% |
Operating margin of 11.85% compares with a Healthcare sector median of 21.64% across 47 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Expansion
- The company identifies capacity expansion as a growth and sustainability imperative.
- The company plans an API and R&D facility at Panoli, Gujarat.
New initiatives
- The company plans to develop intermediates for APIs.
- The company plans process improvements to improve yields of existing products.
- The company plans to automate packing lines in formulations.
- The company plans new regulatory filings and registrations.
Competition
- The company describes itself as one of the leaders in Atenolol.
Problems & risks
- The company aims to reduce dependence on China and move towards self-sufficiency.
What to watch
- Whether operating margin holds above 11.85% after the 1.62-percentage-point qoq decline.
- Whether expense growth moderates from +41.44% qoq relative to revenue growth of +38.81%.
- Whether other income remains close to 10.23% of pre-tax profit and interest growth eases from +12.10%.