Operating margin rebounds 12.46 points as costs fall sequentially
Standalone Q2 net profit rose 15.98% QoQ, while other income contributed just 2.59% of profit before tax.
Filed 02 Nov 2026, 14:45 IST · Procter & Gamble Health Ltd (PGHL)
Key takeaways
- Standalone operating margin expanded 12.46 percentage points QoQ as revenue rose 5.16% while expenses fell 12.87%.
- Standalone net profit increased 15.98% QoQ to Rs 111.51 cr despite a 0.15 percentage-point rise in the tax rate.
- Other income contributed only 2.59% of standalone profit before tax, making the quarter's profit largely operating-driven.
Price around the results
Cost reduction drove the quarterly profit rebound
Procter & Gamble Health's standalone revenue grew 5.16% QoQ, while expenses declined 12.87%, lifting operating profit 52.98%. That operating leverage pushed the margin up 12.46 percentage points to 39.84%, and net profit rose 15.98% to Rs 111.51 cr.
Profit quality was largely operating-led
Other income fell 89.10% QoQ to Rs 3.89 cr, yet profit before tax increased 16.21% because the operating gain more than offset that decline. Other income represented 2.59% of profit before tax, while interest declined 7.14% and the tax rate edged up 0.15 percentage points.
Margin stood well above the healthcare peer median
The 39.84% standalone operating margin was 19.57 percentage points above the 20.27% median for 44 healthcare companies that had reported the same quarter. The available quarterly trend shows a sharp rebound from Q1FY27's 27.38% margin, but does not establish a longer multi-quarter direction.
Q2FY27 at a glance
Standalone figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹382 cr | ₹364 cr | +5.16% |
| Other income | ₹4 cr | ₹36 cr | -89.10% |
| Expenses | ₹230 cr | ₹264 cr | -12.87% |
| Operating profit | ₹152 cr | ₹100 cr | +52.98% |
| Operating margin (%) | 39.84% | 27.38% | — |
| Interest | ₹0 cr | ₹0 cr | -7.14% |
| Depreciation | ₹6 cr | ₹6 cr | +1.00% |
| Profit before tax | ₹150 cr | ₹129 cr | +16.21% |
| Tax | ₹39 cr | ₹33 cr | +16.89% |
| Net profit | ₹112 cr | ₹96 cr | +15.98% |
| EPS (₹) | ₹67.18 | ₹57.92 | +15.99% |
Operating margin of 39.84% compares with a Healthcare sector median of 20.27% across 44 peers that have reported Q2FY27.
What to watch
- Whether standalone operating margin holds above 39.84%.
- Whether expenses remain below the Q2FY27 level of Rs 230.12 cr.
- Whether other income remains a small contributor to profit before tax after accounting for 2.59% this quarter.