Revenue rose 39%, but Mangalam slipped back into an operating loss
Expenses grew faster than revenue, while higher interest and a tax-rate swing kept the consolidated net loss at Rs 7.21 cr.
Filed 05 Nov 2026, 18:43 IST · after market close · Mangalam Drugs and Organics Ltd (MANGALAM)
Key takeaways
- Consolidated revenue rose 38.99% sequentially, but expenses grew faster at 43.28%, pushing operating margin down 3.03 percentage points to -1.45%.
- The company reported a consolidated net loss of Rs 7.21 cr, while a tax credit of Rs 1.78 cr partly reduced the loss.
- Mangalam's operating margin was 23.13 percentage points below the 21.68% Healthcare peer median across 82 reported companies.
Price around the results
Revenue growth did not restore operating profit
Consolidated revenue increased 38.99% from Q1FY27, but expenses rose faster at 43.28%. That cost mismatch turned operating profit of Rs 0.90 cr in the previous quarter into an operating loss of Rs 1.15 cr, with margin narrowing 3.03 percentage points to -1.45%.
Interest and tax movements shaped the reported loss
Interest expense increased 5.71% sequentially to Rs 3.89 cr, while depreciation was Rs 4.12 cr, taking the consolidated pre-tax loss to Rs 8.99 cr. The tax rate moved up 33.06 percentage points to 19.83%, although the Rs 1.78 cr tax credit partly reduced the net loss to Rs 7.21 cr. Other income of Rs 0.17 cr was immaterial relative to the pre-tax loss.
Margin ranked near the bottom of Healthcare peers
Mangalam's -1.45% operating margin was 23.13 percentage points below the 21.68% median for 82 Healthcare companies that had reported the quarter. It ranked third from the bottom on this measure. Sequentially, the net loss narrowed 5.63%, but that improvement did not reflect a recovery in operating margin.
Results were filed after market close
Mangalam filed the consolidated Q2FY27 results after market close on 5 November 2026. The immediate stock response is therefore not addressed here.
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 | ₹79 cr | ₹57 cr | +38.99% |
| Other income | ₹0 cr | ₹0 cr | +54.55% |
| Expenses | ₹81 cr | ₹56 cr | +43.28% |
| Operating profit | ₹-1 cr | ₹1 cr | — |
| Operating margin (%) | -1.45% | 1.58% | — |
| Interest | ₹4 cr | ₹4 cr | +5.71% |
| Depreciation | ₹4 cr | ₹4 cr | +0.73% |
| Profit before tax | ₹-9 cr | ₹-7 cr | -33.19% |
| Tax | ₹-2 cr | ₹1 cr | — |
| Net profit | ₹-7 cr | ₹-8 cr | +5.63% |
| EPS (₹) | ₹-4.55 | ₹-4.83 | +5.80% |
Operating margin of -1.45% compares with a Healthcare sector median of 21.68% across 82 peers that have reported Q2FY27.
What to watch
- Whether operating margin recovers from -1.45%.
- Whether expenses continue to grow faster than revenue, after rising 43.28% versus 38.99% sequentially.
- Whether interest expense remains close to Rs 3.89 cr.