Costs outpaced revenue, pulling Viyash’s margin down 2.15 points
Lower depreciation and tax rate lifted net profit 6.76% sequentially, although other income contributed 10.01% of pre-tax profit.
Filed 13 Nov 2026, 17:36 IST · after market close · Viyash Scientific Ltd (VIYASH)
Key takeaways
- Consolidated operating margin narrowed by 2.15 percentage points to 16.70% as expenses grew +7.16% against revenue growth of +4.39%.
- Net profit rose +6.76% sequentially to Rs 84.65 cr despite a -7.53% fall in operating profit, helped by lower depreciation and a lower tax rate.
- Viyash’s 16.70% operating margin was 4.98 percentage points below the 21.68% median for 98 reported Healthcare peers.
Price around the results
Revenue grew, but operating profit declined
Viyash reported consolidated revenue growth of +4.39% sequentially in Q2FY27, but operating profit fell -7.53%. Expenses grew +7.16%, faster than revenue, narrowing operating margin by 2.15 percentage points to 16.70%. The company filed the results after market close on 13 November 2026.
Lower depreciation supported reported profit
Interest expense rose +9.59% sequentially, but depreciation declined -26.61%, helping profit before tax rise +4.69% despite the lower operating profit. The tax rate fell by 1.39 percentage points to 28.07%, supporting the +6.76% increase in net profit. Other income accounted for 10.01% of pre-tax profit, so the quarter’s earnings included a meaningful non-operating contribution.
Margin remains below the Healthcare peer median
Viyash’s 16.70% operating margin was 4.98 percentage points below the 21.68% median among 98 Healthcare peers that had reported the same quarter. Sequentially, this was a second-quarter comparison showing margin deterioration from 18.85% in Q1FY27; year-on-year data was not part of the reported comparison.
Expansion plans add capacity and oncology focus
The company’s presentation said it completed the acquisition of BioForLife in Italy on 1 October 2026. Management said the new manufacturing block at Viyash-IV, Nalgonda, will add 128 KL of API capacity, with all necessary approvals received. Management also said the company is investing in new oncology capabilities.
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 | ₹988 cr | ₹946 cr | +4.39% |
| Other income | ₹12 cr | ₹8 cr | +41.76% |
| Expenses | ₹823 cr | ₹768 cr | +7.16% |
| Operating profit | ₹165 cr | ₹178 cr | -7.53% |
| Operating margin (%) | 16.70% | 18.85% | — |
| Interest | ₹14 cr | ₹13 cr | +9.59% |
| Depreciation | ₹45 cr | ₹62 cr | -26.61% |
| Profit before tax | ₹118 cr | ₹112 cr | +4.69% |
| Tax | ₹33 cr | ₹33 cr | -0.27% |
| Net profit | ₹85 cr | ₹79 cr | +6.76% |
| EPS (₹) | ₹1.74 | ₹1.51 | +15.23% |
Operating margin of 16.70% compares with a Healthcare sector median of 21.68% across 98 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.
Expansion
- The company completed the acquisition of BioForLife in Italy on 1 October 2026.
- The new manufacturing block at Viyash-IV, Nalgonda will add 128 KL of API capacity.
- The company received all necessary approvals for the new manufacturing block.
New initiatives
- The company is investing in new oncology capabilities.
What to watch
- Whether operating margin moves back from 16.70% after the 2.15-percentage-point sequential decline.
- Whether expense growth moderates from +7.16% relative to revenue growth of +4.39%.
- Progress on the manufacturing block planned to add 128 KL of API capacity.