Revenue grew 19.80% QoQ, but costs cut Sakar's margin
Expenses grew faster than revenue, while higher interest costs limited the benefit of the increase in operating profit.
Filed 23 Oct 2026, 12:17 IST · Sakar Healthcare Ltd (SAKAR)
Key takeaways
- Consolidated revenue grew +19.80% QoQ, but expenses grew faster at +21.95%, limiting operating-profit growth to +14.59%.
- Operating margin fell 1.27 percentage points to 27.85%, even as net profit rose +10.02% QoQ.
- The stock fell -7.25% on results day with a 5.93x volume ratio.
Price around the results
Revenue growth did not fully reach operating profit
Sakar Healthcare’s consolidated revenue grew +19.80% QoQ, but expenses increased faster at +21.95%. That cost gap reduced the conversion of growth into operating profit, which rose +14.59%. Net profit still increased +10.02%, helped by the higher operating profit.
Margin narrowed as costs and interest rose
Operating margin declined 1.27 percentage points to 27.85% because expenses outpaced revenue. Interest expense also rose +19.76%, adding pressure below operating profit. Other income fell -81.82% QoQ, but it accounted for only 1.75% of pre-tax profit, so the quarter’s profit was primarily operating-led; the tax rate changed by just 0.04 percentage points.
Margin remains above the reported Healthcare peer median
The 27.85% operating margin was 5.13 percentage points above the 22.72% median for the six Healthcare peers that had reported the quarter. Sequentially, however, margin moved down from 29.12%, marking a decline from the immediately preceding quarter rather than an improvement in momentum.
Shares reversed an early gain after the results
The stock opened with a +0.44% gap but ended the results day down -7.25%. The move came with a 5.93x volume ratio, indicating unusually active trading around the filing.
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 |
|---|---|---|---|
| Revenue | ₹87 cr | ₹73 cr | +19.80% |
| Other income | ₹0 cr | ₹2 cr | -81.82% |
| Expenses | ₹63 cr | ₹52 cr | +21.95% |
| Operating profit | ₹24 cr | ₹21 cr | +14.59% |
| Operating margin (%) | 27.85% | 29.12% | — |
| Interest | ₹2 cr | ₹2 cr | +19.76% |
| Depreciation | ₹7 cr | ₹7 cr | +0.92% |
| Profit before tax | ₹16 cr | ₹15 cr | +9.88% |
| Tax | ₹5 cr | ₹4 cr | +9.53% |
| Net profit | ₹11 cr | ₹10 cr | +10.02% |
| EPS (₹) | ₹5.08 | ₹4.62 | +9.96% |
Operating margin of 27.85% compares with a Healthcare sector median of 22.72% across 6 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -7.25% | -6.86% |
Volume on the results session was 5.93× its 20-day average.
What to watch
- Whether operating margin holds above 27.85% after falling from 29.12% QoQ.
- Whether expense growth remains below or above the +19.80% revenue-growth rate.
- Whether interest expense reverses its +19.76% QoQ increase.