SPARC's operating loss widens as revenue falls 24.77% sequentially
Expenses rose 2.33% despite lower revenue, while other income of Rs 23.62 cr did not prevent a Rs 24.39 cr consolidated net loss.
Filed 02 Nov 2026, 19:46 IST · after market close · Sun Pharma Advanced Research Company Ltd (SPARC)
Key takeaways
- Consolidated operating margin narrowed 66.71 percentage points sequentially to -151.88% as revenue fell 24.77% while expenses rose 2.33%.
- Other income of Rs 23.62 cr cushioned the operating loss, but SPARC still reported a pre-tax loss of Rs 24.31 cr and a net loss of Rs 24.39 cr.
- SPARC's operating margin was 172.15 percentage points below the 20.27% Healthcare peer median across 44 reported companies, ranking it second from the bottom.
Price around the results
Revenue contraction drives a deeper operating loss
Consolidated revenue fell 24.77% sequentially to Rs 30.03 cr, while expenses increased 2.33% to Rs 75.64 cr. That mismatch widened the operating loss by 34.15% and reduced operating margin by 66.71 percentage points. The results were filed after market close on 02 Nov 2026.
Other income softened, but did not offset the loss
Other income was broadly unchanged at Rs 23.62 cr, but it could not offset the operating loss, leaving a pre-tax loss of Rs 24.31 cr. Other income represented -97.16% of pre-tax profit in the quarter, underlining that reported earnings were not supported by operations. Interest expense fell 98.52%, but that saving was insufficient to prevent the net loss from widening 17.37% sequentially.
Margin remains far below Healthcare peers
SPARC's operating margin of -151.88% was 172.15 percentage points below the 20.27% median for 44 Healthcare companies that had reported the same quarter. Sequentially, margin deteriorated from -85.17%, extending the latest quarter's decline but not establishing a longer multi-quarter pattern from the available trend.
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 | ₹30 cr | ₹40 cr | -24.77% |
| Other income | ₹24 cr | ₹24 cr | -0.17% |
| Expenses | ₹76 cr | ₹74 cr | +2.33% |
| Operating profit | ₹-46 cr | ₹-34 cr | -34.15% |
| Operating margin (%) | -151.88% | -85.17% | — |
| Interest | ₹0 cr | ₹8 cr | -98.52% |
| Depreciation | ₹2 cr | ₹2 cr | +0.00% |
| Profit before tax | ₹-24 cr | ₹-21 cr | -17.61% |
| Tax | ₹0 cr | ₹0 cr | -27.27% |
| Net profit | ₹-24 cr | ₹-21 cr | -17.37% |
| EPS (₹) | ₹-0.75 | ₹-0.64 | -17.19% |
Operating margin of -151.88% compares with a Healthcare sector median of 20.27% across 44 peers that have reported Q2FY27.
What to watch
- Whether revenue recovers from Rs 30.03 cr without expenses rising from Rs 75.64 cr.
- Whether operating margin improves from -151.88%.
- Whether other income remains near Rs 23.62 cr as the company works to reduce the operating loss.