Revenue rose 12.16%, but Tarsons still reported a net loss
Operating margin improved as expenses grew slower than revenue, but interest, depreciation and tax kept consolidated profit after tax negative.
Filed 12 Nov 2026, 13:51 IST · Tarsons Products Ltd (TARSONS)
Key takeaways
- Consolidated revenue grew 12.16% QoQ while expenses rose 9.85%, lifting operating margin by 1.57 percentage points.
- Despite operating profit of Rs 31.09 cr, Tarsons reported a net loss of Rs 0.34 cr as other income equalled 661.19% of pre-tax profit.
- The 151.57% tax rate added to the gap between operating profit and net profit in Q2FY27.
Price around the results
Revenue growth outpaced expense growth
In consolidated Q2FY27, revenue increased 12.16% QoQ, ahead of the 9.85% rise in expenses. This operating leverage lifted margin by 1.57 percentage points to 25.14%.
Operating profit did not reach the bottom line
Interest expense rose 5.43% QoQ and depreciation increased 4.59%, reducing the benefit of higher operating profit. Other income made up 661.19% of pre-tax profit, while the 151.57% tax rate further depressed earnings. Tarsons therefore moved from a net loss of Rs 1.44 cr in Q1FY27 to a smaller net loss of Rs 0.34 cr.
Margin improved sequentially and stayed above the Healthcare median
The quarterly margin direction was positive, rising from 23.57% in Q1FY27 to 25.14% in Q2FY27. Tarsons was 3.46 percentage points above the 21.68% median operating margin of the 94 Healthcare peers that had reported the quarter.
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 | ₹124 cr | ₹110 cr | +12.16% |
| Other income | ₹4 cr | ₹6 cr | -25.92% |
| Expenses | ₹93 cr | ₹84 cr | +9.85% |
| Operating profit | ₹31 cr | ₹26 cr | +19.67% |
| Operating margin (%) | 25.14% | 23.57% | — |
| Interest | ₹7 cr | ₹6 cr | +5.43% |
| Depreciation | ₹28 cr | ₹27 cr | +4.59% |
| Profit before tax | ₹1 cr | ₹-1 cr | — |
| Tax | ₹1 cr | ₹0 cr | +741.67% |
| Net profit | ₹-0 cr | ₹-1 cr | +76.39% |
| EPS (₹) | ₹-0.06 | ₹-0.27 | +77.78% |
Operating margin of 25.14% compares with a Healthcare sector median of 21.68% across 94 peers that have reported Q2FY27.
What to watch
- Whether operating margin holds above 25.14%.
- Whether the tax rate moves down from 151.57%.
- Whether net profit improves from the Rs 0.34 cr loss.