Operating gain fails to prevent 46.42% QoQ profit drop
Revenue rose 1.20% and margin widened 0.57 points, but other income turned negative and the tax rate rose 3.47 points.
Filed 04 Nov 2026, 13:54 IST · Unichem Laboratories Ltd (UNICHEMLAB)
Key takeaways
- Consolidated operating profit rose 6.46% QoQ as revenue grew 1.20% while expenses increased 0.55%, lifting operating margin by 0.57 percentage points to 11.63%.
- Net profit fell 46.42% QoQ because other income moved to negative Rs 8.89 cr, interest cost rose 16.47%, and the tax rate increased 3.47 percentage points.
- Unichem's 11.63% operating margin was 9.77 percentage points below the 21.4% median for 69 Healthcare peers that had reported.
Price around the results
Operating profit improved, net profit did not
Unichem Laboratories reported consolidated revenue of Rs 640.22 cr, up 1.20% QoQ, while expenses rose 0.55%. The slower cost growth lifted operating profit 6.46% and expanded operating margin to 11.63%, but profit before tax fell 44.13% and net profit dropped 46.42% to Rs 22.22 cr. EPS declined 52.19% to Rs 3.16.
Other income and financing costs drove the earnings gap
Other income swung from positive Rs 15.61 cr in Q1FY27 to negative Rs 8.89 cr, equivalent to -32.48% of current-quarter profit before tax. Interest cost rose 16.47% and the tax rate increased 3.47 percentage points to 18.82%, offsetting the improvement in operating profit.
Margin improved but remains near the sector's lower end
The quarter-on-quarter trend shows operating margin improving from 11.06% in Q1FY27 to 11.63% in Q2FY27. Even so, the margin was 9.77 percentage points below the 21.4% median among 69 Healthcare peers, placing Unichem ninth from the bottom.
Shares fell despite heavy trading
The stock fell 1.05% on the result date, after opening with a 1.09% positive gap. Its relative performance was -1.68%, with volume at 9.75 times the reference level.
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 | ₹640 cr | ₹633 cr | +1.20% |
| Other income | ₹-9 cr | ₹16 cr | — |
| Expenses | ₹566 cr | ₹563 cr | +0.55% |
| Operating profit | ₹74 cr | ₹70 cr | +6.46% |
| Operating margin (%) | 11.63% | 11.06% | — |
| Interest | ₹8 cr | ₹7 cr | +16.47% |
| Depreciation | ₹30 cr | ₹30 cr | +1.84% |
| Profit before tax | ₹27 cr | ₹49 cr | -44.13% |
| Tax | ₹5 cr | ₹8 cr | -31.52% |
| Net profit | ₹22 cr | ₹41 cr | -46.42% |
| EPS (₹) | ₹3.16 | ₹6.61 | -52.19% |
Operating margin of 11.63% compares with a Healthcare sector median of 21.40% across 69 peers that have reported Q2FY27.
How the stock reacted
| Window | Stock | vs NIFTY |
|---|---|---|
| Results day | -1.05% | -1.68% |
Volume on the results session was 9.75× its 20-day average.
What to watch
- Whether consolidated operating margin holds above 11.63%.
- Whether other income moves back from negative Rs 8.89 cr.
- Whether interest-cost growth moderates from 16.47% QoQ.