RPG Life Sciences shares slide 15.27% as margin drops 3.02 points
Expenses grew 12.35% QoQ against 8.15% revenue growth, leaving operating margin 1.72 percentage points below the Healthcare peer median.
Filed 29 Oct 2026, 23:48 IST · after market close · RPG Life Sciences Ltd (RPGLIFE)
Key takeaways
- Consolidated revenue grew +8.15% QoQ to Rs 211.64 cr, but expenses rose +12.35%, cutting operating margin by 3.02 percentage points to 19.10%.
- Net profit fell -8.26% QoQ to Rs 28.22 cr even as the tax rate declined by 2.00 percentage points to 23.81%.
- The stock fell -15.27% after the results, with trading volume at 5.21 times the reference level.
Price around the results
Revenue growth did not convert into operating profit
RPG Life Sciences reported consolidated revenue growth of +8.15% QoQ, but operating profit declined -6.63% as costs rose faster than sales. Profit before tax fell -10.66%, while net profit declined -8.26% and EPS fell -8.23% to Rs 17.07. The quarter therefore showed better sales momentum but weaker earnings conversion.
Cost growth drove the 3.02-point margin contraction
Expenses increased +12.35% QoQ versus +8.15% revenue growth, reducing operating margin by 3.02 percentage points to 19.10%. Interest expense rose +33.33% and depreciation increased +15.25%, adding to the pressure below operating profit. The lower tax rate partly cushioned net profit, while other income contributed 11.50% of profit before tax, making reported earnings less purely operating in composition.
Margin was below the Healthcare peer median
Operating margin declined from 22.12% in Q1FY27 to 19.10% in Q2FY27, marking a sequential deterioration; the available quarter trend does not establish a longer run of declines. The margin was 1.72 percentage points below the 20.82% median for the 38 Healthcare peers that had reported the same quarter. Management said modernization and capacity expansion were in progress at both the F1 and F2 manufacturing units to improve efficiency and scalability.
Shares saw a sharp post-results reaction
The stock fell -15.27% on the reaction date, including a -6.39% opening gap, and volume was 5.21 times the reference level. The move followed a quarter in which revenue grew but operating profit and net profit declined sequentially.
Q2FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹212 cr | ₹196 cr | +8.15% |
| Other income | ₹4 cr | ₹5 cr | -9.36% |
| Expenses | ₹171 cr | ₹152 cr | +12.35% |
| Operating profit | ₹40 cr | ₹43 cr | -6.63% |
| Operating margin (%) | 19.10% | 22.12% | — |
| Interest | ₹1 cr | ₹1 cr | +33.33% |
| Depreciation | ₹7 cr | ₹6 cr | +15.25% |
| Profit before tax | ₹37 cr | ₹41 cr | -10.66% |
| Tax | ₹9 cr | ₹11 cr | -17.57% |
| Net profit | ₹28 cr | ₹31 cr | -8.26% |
| EPS (₹) | ₹17.07 | ₹18.60 | -8.23% |
Operating margin of 19.10% compares with a Healthcare sector median of 20.82% across 38 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -15.27% | -15.78% |
Volume on the results session was 5.21× its 20-day average.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
Expansion
- Modernization and capacity expansion are in progress at the F1 manufacturing unit.
- Modernization and capacity expansion are ongoing at the F2 manufacturing unit.
What to watch
- Whether operating margin recovers from 19.10% after the 3.02-percentage-point QoQ decline.
- Whether expense growth slows from +12.35% QoQ relative to revenue growth of +8.15%.
- Whether the F1 and F2 modernization programmes progress alongside a margin above the 19.10% reported in Q2FY27.