Revenue growth outpaced costs, but Windlas margin remains below peers
Standalone net profit rose only 2.27% QoQ as interest costs jumped 41.21%; other income was 16.57% of pre-tax profit.
Filed 05 Nov 2026, 16:37 IST · after market close · Windlas Biotech Ltd (WINDLAS)
Key takeaways
- Standalone revenue rose 6.37% QoQ to Rs 263.91 cr, while expenses grew 5.93%, lifting operating margin by 0.38 percentage points.
- Net profit increased only 2.27% QoQ to Rs 18.05 cr as interest expense rose 41.21% and other income contributed 16.57% of pre-tax profit.
- At 11.13%, operating margin was 10.54 percentage points below the 21.67% median for 74 reporting Healthcare peers.
Price around the results
Sequential growth did not fully reach pre-tax profit
Windlas reported standalone revenue growth of 6.37% QoQ in Q2FY27, with expenses rising more slowly at 5.93%; operating profit consequently increased 10.04%. Pre-tax profit grew only 1.57% because interest expense rose 41.21% and other income fell 24.46%.
Margin improved, but remained well below the peer median
Operating margin expanded by 0.38 percentage points to 11.13% as revenue growth outpaced expense growth. The margin was 10.54 percentage points below the 21.67% median of 74 Healthcare peers that had reported the quarter, placing Windlas eighth from the bottom. Net profit growth was also helped by a 0.51 percentage-point decline in the tax rate to 22.52%, while other income represented 16.57% of pre-tax profit.
Plant-6 and injectable capacity are the stated growth priorities
Management said Plant-6 was commercialized in September 2026, adding to the company’s manufacturing infrastructure. The company told analysts that it plans to scale its injectable platform across all three business verticals, broaden its portfolio toward critical-care and specialised therapies, and fast-track launches linked to patent expirations. Management also said Plants 4 and 5 received EU GMP certification during Q2FY27 in line with its export strategy.
Results were filed after market close
The standalone results were filed after market close on 5 November 2026. The stock’s post-results reaction is therefore not covered here.
Q2FY27 at a glance
Standalone figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹264 cr | ₹248 cr | +6.37% |
| Other income | ₹4 cr | ₹5 cr | -24.46% |
| Expenses | ₹235 cr | ₹221 cr | +5.93% |
| Operating profit | ₹29 cr | ₹27 cr | +10.04% |
| Operating margin (%) | 11.13% | 10.75% | — |
| Interest | ₹2 cr | ₹2 cr | +41.21% |
| Depreciation | ₹8 cr | ₹7 cr | +5.27% |
| Profit before tax | ₹23 cr | ₹23 cr | +1.57% |
| Tax | ₹5 cr | ₹5 cr | -0.57% |
| Net profit | ₹18 cr | ₹18 cr | +2.27% |
| EPS (₹) | ₹8.75 | ₹8.46 | +3.43% |
Operating margin of 11.13% compares with a Healthcare sector median of 21.67% across 74 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.
This quarter
- Plant-4 and Plant-5 received EU GMP certification during Q2 FY27 in line with Windlas's export strategy.
Guidance & outlook
- Windlas aims to pursue long-term growth aspirations through continued investment in capacity and capability.
- Windlas plans to scale its injectable platform across all three business verticals.
- Windlas plans to broaden its portfolio toward critical-care and specialised therapeutic segments.
- Windlas plans to fast-track launches aligned with upcoming patent expirations.
Expansion
- Plant-6 was commercialized in September 2026 as an addition to Windlas's manufacturing infrastructure.
New initiatives
- Windlas is developing high-bioavailability products to strengthen differentiation.
- Windlas received EU GMP certification for Plant-4 and Plant-5 during Q2 FY27.
Competition
- Windlas describes itself as among India's leading domestic generic formulations CDMO players.
What to watch
- Whether operating margin holds above 11.13% after the 0.38 percentage-point QoQ improvement.
- Whether interest expense moderates from the 41.21% QoQ increase.
- Whether other income becomes a smaller share of pre-tax profit than 16.57%.