Wockhardt’s profit rebound loses momentum after Q4 peak
Year-on-year performance improved sharply, but sequential margin pressure and a sizeable contribution from other income qualify the quarter.
Filed 10 Aug 2026, 17:31 IST · after market close · Wockhardt Ltd (WOCKPHARMA)
Key takeaways
- Consolidated net profit rose to Rs 107 cr from a loss of Rs 108 cr a year earlier as revenue grew 25.88% while expenses rose 10.66%.
- Operating margin fell 2.65 percentage points sequentially to 20.67% because revenue declined 3.73% while expenses fell only 0.41%.
- Other income contributed 26.72% of pre-tax profit, while the 5.47-percentage-point sequential fall in the tax rate also supported net profit.
Price around the results
Year-on-year recovery, sequential slowdown
Wockhardt reported consolidated net profit of Rs 107 cr in Q1FY27, compared with a loss of Rs 108 cr a year earlier. The recovery was supported by 25.88% revenue growth against a 10.66% rise in expenses, lifting operating profit 166.67% year on year. Sequentially, revenue fell 3.73% and net profit declined 34.76% from Rs 164 cr in Q4FY26.
Margin falls after Q4 expansion
Operating margin narrowed 2.65 percentage points sequentially to 20.67%, as costs declined less than revenue. Interest expense rose 4.00% sequentially, while depreciation increased 3.77%, adding to the pressure below operating profit. Year on year, the margin expanded 10.91 percentage points because revenue growth outpaced expense growth.
Profit quality needs attention
Other income accounted for 26.72% of pre-tax profit, so reported earnings were not driven entirely by operations. The sequential tax-rate decline of 5.47 percentage points also cushioned the fall in net profit. Operating margin was 2.28 percentage points below the 22.95% median among 57 healthcare peers that had reported the quarter.
No immediate market reaction yet
The results were filed after market close, so there was no market reaction to report at the time of filing. Across the last eight results, the stock rose after five and fell after three, with a median absolute move of 3.25%. The recent pattern includes both positive and negative reactions, rather than a consistent direction.
Q1FY27 at a glance
Consolidated figures as filed with NSE — cross-checked against an independent source.
| Line item | Q1FY27 | Q4FY26 | QoQ | YoY |
|---|---|---|---|---|
| Revenue | ₹929 cr | ₹965 cr | -3.73% | +25.88% |
| Other income | ₹31 cr | ₹67 cr | -53.73% | — |
| Expenses | ₹737 cr | ₹740 cr | -0.41% | +10.66% |
| Operating profit | ₹192 cr | ₹225 cr | -14.67% | +166.67% |
| Operating margin (%) | 20.67% | 23.32% | — | — |
| Interest | ₹52 cr | ₹50 cr | +4.00% | +8.33% |
| Depreciation | ₹55 cr | ₹53 cr | +3.77% | -1.79% |
| Profit before tax | ₹116 cr | ₹189 cr | -38.62% | — |
| Tax | ₹9 cr | ₹25 cr | -64.00% | — |
| Net profit | ₹107 cr | ₹164 cr | -34.76% | — |
| EPS (₹) | ₹6.55 | ₹10.23 | -35.97% | — |
Operating margin of 20.67% compares with a Healthcare sector median of 22.95% across 57 peers that have reported Q1FY27.
What to watch
- Whether operating margin recovers from 20.67% after the sequential decline of 2.65 percentage points.
- Whether other income remains below or above its current 26.72% share of pre-tax profit.
- Whether revenue growth remains ahead of the 10.66% year-on-year expense growth rate.