Rubicon’s Q2 profit rose +67.93% YoY as margin reached 25.00%
Revenue grew faster than expenses, while a lower tax rate added to profit growth; management raised FY27 operating EBITDA margin guidance to 24% or more.
Filed 05 Nov 2026, 16:06 IST · after market close · Rubicon Research Ltd (RUBICON)
Key takeaways
- Operating margin expanded 2.11 percentage points YoY to 25.00% as revenue grew +39.89%, faster than expenses at +36.06%.
- Net profit grew +67.93% YoY, helped by a 2.24 percentage-point lower tax rate, while other income was only 1.96% of pre-tax profit.
- Management said it raised FY27 operating EBITDA margin guidance to 24% or more after three Q2 product approvals, with 84% of approved products commercialised.
Price around the results
Revenue growth widened the operating spread
Rubicon Research’s consolidated revenue grew +39.89% YoY in Q2FY27, while expenses rose +36.06%, lifting operating profit by +52.80%. The same pattern held sequentially: revenue increased +7.87% and expenses +6.68%, resulting in a 0.84 percentage-point margin expansion. Below operating profit, QoQ interest rose +22.82% and depreciation +19.15%, limiting pre-tax profit growth to +5.93%.
Margin has risen for three straight quarters
The operating margin reached 25.00%, its third consecutive quarterly increase after the 22.74% level in Q3FY26, and was up 2.11 percentage points YoY. The 22.66% tax rate was 2.24 percentage points lower than a year earlier, so the net-profit increase received a tax-rate benefit. Other income contributed only 1.96% of pre-tax profit and was not a material earnings driver. The margin was 3.30 percentage points above the 21.70% median for the 73 Healthcare peers that had reported.
Management raises FY27 margin guidance
Management reported USD revenue of $58 million in Q2FY27, up more than 5% from Q1FY27, and said it sees strong revenue visibility in the coming quarters. The company said it raised FY27 operating EBITDA margin guidance to 24% or more and expects R&D productivity at similar levels to support visibility for FY29, FY30 and beyond. Management also said it received three product approvals in the quarter, with 84% of approved products commercialised, and that some recent approvals are planned for commercialisation in the coming quarter.
Results were filed after market close
The results were filed after market close, so there is no current-session reaction to assess. Historically, the stock rose after each of its last four results, with a median absolute move of 11.09%.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹576 cr | ₹534 cr | +7.87% | +39.89% |
| Other income | ₹2 cr | ₹6 cr | -59.68% | +227.14% |
| Expenses | ₹432 cr | ₹405 cr | +6.68% | +36.06% |
| Operating profit | ₹144 cr | ₹129 cr | +11.59% | +52.80% |
| Operating margin (%) | 25.00% | 24.16% | — | — |
| Interest | ₹11 cr | ₹9 cr | +22.82% | -0.09% |
| Depreciation | ₹18 cr | ₹15 cr | +19.15% | +51.98% |
| Profit before tax | ₹117 cr | ₹110 cr | +5.93% | +63.07% |
| Tax | ₹27 cr | ₹26 cr | +3.56% | +48.46% |
| Net profit | ₹90 cr | ₹85 cr | +6.66% | +67.93% |
| EPS (₹) | ₹5.47 | ₹5.13 | +6.63% | +56.73% |
Operating margin of 25.00% compares with a Healthcare sector median of 21.70% across 73 peers that have reported Q2FY27.
What management said
From the company’s own investor presentation. Each point is checked against the source document before it appears here.
This quarter
- The company received three product approvals in Q2 FY27, with 84% of approved products commercialised.
Guidance & outlook
- The company reported USD revenue of $58 million in Q2 FY27, up more than 5% from Q1 FY27, and sees strong revenue visibility ahead.
- The company raised its FY27 Operating EBITDA margin guidance to 24% or more.
- The company expects continued R&D productivity at similar levels to provide visibility for FY29, FY30 and beyond.
Planned next quarter
- Some recently approved products are planned for commercialisation in the coming quarter.
Competition
- The company says it has built leading positions despite entering mature, competitive products late.
What to watch
- Whether operating margin stays above 25.00% after its third consecutive QoQ expansion.
- Whether expenses continue to grow slower than revenue, after +36.06% YoY versus +39.89%.
- Commercialisation of recently approved products, given three approvals in Q2 and an 84% commercialisation rate.