Panacea Biotec's 2.84% margin ranks fourth from bottom among 69 peers
Other income of Rs 6.98 cr exceeded pre-tax profit of Rs 3.57 cr, while depreciation and interest outweighed operating profit.
Filed 13 Aug 2026, 18:46 IST · after market close · Panacea Biotec Ltd (PANACEABIO)
Key takeaways
- Consolidated operating margin was 2.84%, 20.11 percentage points below the 22.95% median for 69 reporting healthcare peers.
- Other income of Rs 6.98 cr exceeded profit before tax of Rs 3.57 cr, making the Rs 2.20 cr net profit dependent on non-operating income.
- Depreciation of Rs 7.90 cr and interest of Rs 1.18 cr more than absorbed the Rs 5.67 cr operating profit before other income supported pre-tax profit.
Price around the results
Operating profit was small relative to the revenue base
Expenses of Rs 193.90 cr absorbed almost all of the Rs 199.57 cr revenue, leaving Rs 5.67 cr of operating profit. Depreciation of Rs 7.90 cr and interest of Rs 1.18 cr then more than offset operating profit, with other income of Rs 6.98 cr bringing profit before tax to Rs 3.57 cr.
Profit quality is the central issue this quarter
Other income was higher than profit before tax, so the Rs 2.20 cr net profit was not generated by operations alone. The tax rate was 38.38%, after tax expense of Rs 1.37 cr, which further reduced the profit retained from pre-tax earnings.
Margin was near the bottom of the reporting peer group
Panacea Biotec's 2.84% operating margin was 20.11 percentage points below the 22.95% median among 69 healthcare peers that had reported the same quarter. It ranked fourth from the bottom of that group, placing the quarter's operating performance well below the sector comparison.
Results were filed after market close
The consolidated results were filed at 18:46 IST on 13 August 2026, after the market closed. There is no immediate market reaction to assess in this update.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 |
|---|---|
| Revenue | ₹200 cr |
| Other income | ₹7 cr |
| Expenses | ₹194 cr |
| Operating profit | ₹6 cr |
| Operating margin (%) | 2.84% |
| Interest | ₹1 cr |
| Depreciation | ₹8 cr |
| Profit before tax | ₹4 cr |
| Tax | ₹1 cr |
| Net profit | ₹2 cr |
| EPS (₹) | ₹0.38 |
Operating margin of 2.84% compares with a Healthcare sector median of 22.95% across 69 peers that have reported Q1FY27.
What to watch
- Whether operating margin moves above 2.84% while expenses remain below the revenue base.
- Whether operating profit exceeds depreciation of Rs 7.90 cr in the next quarter.
- Whether profit before tax remains above other income of Rs 6.98 cr.