Krebs Biochemicals swings to a 33.31% operating loss in Q2
Revenue fell 17.05% sequentially as expenses rose 25.32%, widening the net loss to Rs 5.40 cr.
Filed 29 Oct 2026, 13:10 IST · Krebs Biochemicals & Industries Ltd (KREBSBIO)
Key takeaways
- Standalone operating margin fell 45.15 percentage points sequentially to -33.31% as revenue declined 17.05% while expenses rose 25.32%.
- The company reported a standalone net loss of Rs 5.40 cr, widening from Rs 2.48 cr in Q1FY27, with EPS at Rs -2.50.
- The stock fell 1.94% on the results date, while the company's operating margin was 53.21 percentage points below the 19.90% median for 31 reporting healthcare peers.
Price around the results
Revenue drop met with a sharp cost increase
Krebs Biochemicals reported standalone revenue of Rs 5.79 cr in Q2FY27, down 17.05% sequentially from Q1FY27. Expenses rose 25.32% to Rs 7.72 cr, so operating profit of Rs 0.83 cr in the previous quarter turned into an operating loss of Rs 1.93 cr. The resulting operating margin decline was 45.15 percentage points, to -33.31%.
Loss widened despite little change in finance costs
Profit before tax widened to a loss of Rs 5.40 cr from Rs 2.48 cr, while interest increased 1.06% and depreciation rose 1.26% sequentially. Other income fell 75.00% to Rs 0.04 cr and represented -0.74% of pre-tax profit, so it did not materially support the reported result. The tax rate remained 0.0%, and the net loss therefore matched the pre-tax loss.
Margin was lowest among 31 reporting healthcare peers
The company's -33.31% operating margin was 53.21 percentage points below the 19.90% median among 31 healthcare peers that had reported the same quarter. It ranked first from the bottom on this measure. Sequentially, the direction also worsened materially, with EPS moving from Rs -1.15 to Rs -2.50.
Shares fell on the results date
The stock declined 1.94% on 29 October, the results date, despite opening 1.35% higher. Trading volume was 0.13 times the reference volume, and the move was 2.99 percentage points below the market's return.
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 | ₹6 cr | ₹7 cr | -17.05% |
| Other income | ₹0 cr | ₹0 cr | -75.00% |
| Expenses | ₹8 cr | ₹6 cr | +25.32% |
| Operating profit | ₹-2 cr | ₹1 cr | — |
| Operating margin (%) | -33.31% | 11.84% | — |
| Interest | ₹2 cr | ₹2 cr | +1.06% |
| Depreciation | ₹2 cr | ₹2 cr | +1.26% |
| Profit before tax | ₹-5 cr | ₹-2 cr | -117.74% |
| Tax | ₹0 cr | ₹0 cr | — |
| Net profit | ₹-5 cr | ₹-2 cr | -117.74% |
| EPS (₹) | ₹-2.50 | ₹-1.15 | -117.39% |
Operating margin of -33.31% compares with a Healthcare sector median of 19.90% across 31 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -1.94% | -2.99% |
Volume on the results session was 0.13× its 20-day average.
What to watch
- Whether operating margin moves back above the Q1FY27 level of 11.84%.
- Whether expenses fall from Rs 7.72 cr while revenue recovers from Rs 5.79 cr.
- Whether the net loss narrows from Rs 5.40 cr and EPS improves from Rs -2.50.