Pfizer profit jumps as other income drives 42.43% of pre-tax profit
Revenue grew +13.16% YoY, but operating margin fell 1.96 percentage points QoQ as expenses outpaced sales.
Filed 03 Nov 2026, 14:14 IST · Pfizer Ltd (PFIZER)
Key takeaways
- Standalone net profit rose +65.72% YoY to Rs 313.25 cr, helped by other income equal to 42.43% of profit before tax.
- Operating margin fell 1.96 percentage points QoQ to 35.94% as expenses grew +14.80%, faster than revenue at +11.28%.
- Revenue grew +13.16% YoY and operating margin edged up 0.14 percentage points, keeping Pfizer 14.70 percentage points above the healthcare peer median.
Price around the results
Revenue growth accelerated, but sequential operating leverage weakened
Pfizer Ltd reported standalone revenue growth of +13.16% YoY to Rs 726.86 cr, with operating profit up +13.60% to Rs 261.20 cr. Sequentially, revenue increased +11.28%, but operating profit rose only +5.51%, indicating weaker conversion of sales growth into operating earnings. Net profit increased +65.72% YoY to Rs 313.25 cr.
Higher costs narrowed the margin from Q1FY27
Expenses grew +14.80% QoQ against revenue growth of +11.28%, reducing operating margin by 1.96 percentage points to 35.94%. The YoY comparison was better: expenses rose +12.91%, slower than revenue at +13.16%, lifting margin by 0.14 percentage points. Other income rose +300.07% QoQ and contributed 42.43% of pre-tax profit, while interest expense increased +129.45% QoQ; the tax rate fell 0.18 percentage points.
Margin remains above peers despite the Q2FY27 pullback
Operating margin has not followed a straight decline: it rose from 34.83% in Q1FY26 to 37.90% in Q1FY27 before falling to 35.94% in Q2FY27. It remains above the 21.24% median for the 56 healthcare peers that had reported the same quarter, a gap of 14.70 percentage points.
Past result-day moves have usually been modest
Across eight past result reactions, the stock rose six times and fell twice. The median absolute move was 1.37%, providing context for the scale of its usual post-results response.
Q2FY27 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹727 cr | ₹653 cr | +11.28% | +13.16% |
| Other income | ₹179 cr | ₹45 cr | +300.07% | +328.65% |
| Expenses | ₹466 cr | ₹406 cr | +14.80% | +12.91% |
| Operating profit | ₹261 cr | ₹248 cr | +5.51% | +13.60% |
| Operating margin (%) | 35.94% | 37.90% | — | — |
| Interest | ₹3 cr | ₹1 cr | +129.45% | +57.28% |
| Depreciation | ₹14 cr | ₹14 cr | +1.05% | +0.91% |
| Profit before tax | ₹423 cr | ₹277 cr | +52.82% | +65.58% |
| Tax | ₹110 cr | ₹72 cr | +51.75% | +65.15% |
| Net profit | ₹313 cr | ₹204 cr | +53.20% | +65.72% |
| EPS (₹) | ₹68.47 | ₹44.69 | +53.21% | +65.71% |
Operating margin of 35.94% compares with a Healthcare sector median of 21.24% across 56 peers that have reported Q2FY27.
What to watch
- Whether operating margin recovers from 35.94% after the 1.96-percentage-point QoQ decline.
- Whether expenses grow more slowly than revenue after rising +14.80% QoQ against revenue growth of +11.28%.
- Whether other income remains a material contributor after accounting for 42.43% of pre-tax profit.