Pfizer’s profit falls 39.62% as other income drops sharply
Revenue grew 6.31% year on year, but faster cost growth and a 3.39-point rise in the tax rate weighed on earnings.
Filed 12 May 2026, 19:52 IST · after market close · Pfizer Ltd (PFIZER)
Key takeaways
- Standalone net profit fell 39.62% year on year despite revenue growth of 6.31%, as other income declined 77.11%.
- Operating margin narrowed 0.93 percentage points year on year because expenses grew 7.92%, faster than revenue at 6.31%.
- The stock fell 2.38% on the first trading day after results, reversing its usual pattern of gains in 7 of the last 8 result reactions.
Price around the results
Revenue held up, but reported profit lost its support
Pfizer Ltd’s standalone revenue rose 6.31% year on year to Rs 629.23 cr, while operating profit grew only 3.71%. Net profit fell 39.62% to Rs 199.82 cr because other income dropped 77.11% to Rs 49.76 cr from Rs 217.39 cr a year earlier. Other income still contributed 18.51% of pre-tax profit, making earnings quality weaker than the operating result suggests.
Sequential margin recovery came from lower expenses
Quarter on quarter, revenue declined 2.45%, but expenses fell faster at 5.65%, lifting operating margin by 2.12 percentage points. Net profit rose 40.88% sequentially, helped by other income moving from negative Rs 19.99 cr in Q3FY26 to Rs 49.76 cr in Q4FY26. The tax rate also eased 0.44 percentage points sequentially, though interest expense rose 6.03%.
Margin improved from Q3 but stayed below last year
Operating margin rose from 35.38% in Q3FY26 to 37.50% in Q4FY26, after moving from 34.83% in Q1FY26 to 35.80% in Q2FY26. It remained 0.93 percentage points below Q4FY25, when the margin was 38.43%. Pfizer’s margin was 14.12 percentage points above the 23.38% median for the 48 healthcare peers that had reported.
The post-result fall was unusual for this stock
The stock fell 2.38% on the first trading day after the results were filed after market close, and was down 6.42% after 15 trading days. The initial decline was larger than the 1.65% median absolute move after its last eight results, during which the stock rose after seven announcements and fell after one.
Q4FY26 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q4FY26 | Q3FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹629 cr | ₹645 cr | -2.45% | +6.31% |
| Other income | ₹50 cr | ₹-20 cr | — | -77.11% |
| Expenses | ₹393 cr | ₹417 cr | -5.65% | +7.92% |
| Operating profit | ₹236 cr | ₹228 cr | +3.40% | +3.71% |
| Operating margin (%) | 37.50% | 35.38% | — | — |
| Interest | ₹2 cr | ₹2 cr | +6.03% | -21.56% |
| Depreciation | ₹15 cr | ₹14 cr | +3.65% | -9.88% |
| Profit before tax | ₹269 cr | ₹192 cr | +40.05% | -36.87% |
| Tax | ₹69 cr | ₹50 cr | +37.70% | -27.26% |
| Net profit | ₹200 cr | ₹142 cr | +40.88% | -39.62% |
| EPS (₹) | ₹43.68 | ₹31.01 | +40.86% | -39.62% |
Operating margin of 37.50% compares with a Healthcare sector median of 23.38% across 48 peers that have reported Q4FY26.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -2.38% | -2.52% |
| Next session | -0.95% | — |
| 5 sessions | -0.81% | -2.01% |
| 15 sessions | -6.42% | — |
| 30 sessions | -5.61% | — |
Volume on the results session was 1.94× its 20-day average.
What to watch
- Whether operating margin remains above 37.50% after the sequential recovery.
- Whether revenue momentum improves after the 2.45% quarter-on-quarter decline.
- Whether other income remains a material contributor after accounting for 18.51% of pre-tax profit.