Lincoln's Q2 margin slips as costs outpace revenue
Revenue rose +7.94% sequentially, but expenses grew +11.89%; lower other income also cut profit.
Filed 29 Oct 2026, 12:30 IST · Lincoln Pharmaceuticals Ltd (LINCOLN)
Key takeaways
- Consolidated operating margin narrowed 3.09 percentage points sequentially to 12.38% as expenses grew +11.89% against revenue growth of +7.94%.
- Net profit fell -43.61% sequentially as other income dropped -60.72% and the tax rate rose 5.81 percentage points to 29.61%.
- Lincoln's 12.38% operating margin was 7.52 percentage points below the Healthcare median across 31 reported peers, placing it sixth from the bottom.
Price around the results
Revenue growth did not cover the cost increase
Consolidated revenue rose +7.94% sequentially to Rs 191.35 cr, but expenses increased faster at +11.89% to Rs 167.66 cr. That cost gap reduced operating profit by -13.63% and narrowed operating margin by 3.09 percentage points to 12.38%. Net profit consequently declined -43.61% to Rs 20.43 cr.
Lower other income amplified the profit decline
Other income fell -60.72% sequentially to Rs 9.53 cr, and still represented 32.84% of profit before tax, making reported profit meaningfully dependent on non-operating income. The tax rate rose 5.81 percentage points to 29.61%, while interest expense increased +23.08%, adding to the pressure below operating profit.
Q2 margin was below the Healthcare peer median
Lincoln's 12.38% operating margin was 7.52 percentage points below the 19.9% median for 31 Healthcare peers that had reported the quarter. The company ranked sixth from the bottom on this measure, leaving its operating margin below the sector comparison despite sequential revenue growth.
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 |
|---|---|---|---|
| Revenue | ₹191 cr | ₹177 cr | +7.94% |
| Other income | ₹10 cr | ₹24 cr | -60.72% |
| Expenses | ₹168 cr | ₹150 cr | +11.89% |
| Operating profit | ₹24 cr | ₹27 cr | -13.63% |
| Operating margin (%) | 12.38% | 15.47% | — |
| Interest | ₹0 cr | ₹0 cr | +23.08% |
| Depreciation | ₹4 cr | ₹4 cr | +0.00% |
| Profit before tax | ₹29 cr | ₹48 cr | -38.97% |
| Tax | ₹9 cr | ₹11 cr | -24.12% |
| Net profit | ₹20 cr | ₹36 cr | -43.61% |
| EPS (₹) | ₹10.20 | ₹18.09 | -43.62% |
Operating margin of 12.38% compares with a Healthcare sector median of 19.90% across 31 peers that have reported Q2FY27.
What to watch
- Whether operating margin recovers from 12.38% after the 3.09-percentage-point sequential decline.
- Whether expense growth slows from +11.89% relative to revenue growth of +7.94%.
- Whether other income remains a 32.84% share of profit before tax and whether the tax rate stays near 29.61%.