Wockhardt's sales rose, but faster costs cut operating margin to 17.85%
Revenue grew +23.91% YoY, yet higher expenses and a 0.00% tax rate left net profit down -10.98% at Rs 73 cr.
Filed 02 Nov 2026, 19:11 IST · after market close · Wockhardt Ltd (WOCKPHARMA)
Key takeaways
- Consolidated revenue grew +23.91% YoY, but expenses grew +31.79%, pulling operating margin down 4.91 percentage points to 17.85%.
- Net profit fell -10.98% YoY to Rs 73 cr even with a 0.00% tax rate, as profit before tax declined -19.78%.
- Sequentially, revenue rose +4.31% but operating profit fell -9.90% as expenses increased +8.01%, extending the margin decline to 17.85%.
Price around the results
Sales growth did not convert into operating profit
This was a consolidated quarter in which revenue grew +23.91% YoY to Rs 969 cr, but operating profit fell -2.81% to Rs 173 cr. Sequentially, revenue increased +4.31%, while operating profit declined -9.90%.
Costs drove a second consecutive quarterly margin decline
The sequential margin drop of 2.82 percentage points came as expenses rose +8.01%, faster than revenue at +4.31%; interest expense also increased +7.69%. Operating margin has now fallen from 23.32% in Q4FY26 to 20.67% in Q1FY27 and 17.85% in Q2FY27. The margin was 2.42 percentage points below the 20.27% median for 44 healthcare peers that had reported.
Zero tax supported reported profit, while other income remained material
Net profit declined -10.98% YoY and -31.78% sequentially, even though the tax rate fell to 0.00% from 9.89% a year earlier and 7.76% in the previous quarter. Profit before tax fell -19.78% YoY and -37.07% sequentially, so the lower tax charge did not offset the weaker pre-tax result. Other income accounted for 15.07% of profit before tax, making the reported profit quality an important consideration.
No market reaction yet after the post-close filing
The results were filed after market close, so there is no post-result market reaction to assess yet. Across eight previous result reactions, the stock rose four times and fell four times, with a median absolute move of 3.25%; the listed recent moves ranged from -3.25% to +10.32%.
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 | YoY |
|---|---|---|---|---|
| Revenue | ₹969 cr | ₹929 cr | +4.31% | +23.91% |
| Other income | ₹11 cr | ₹31 cr | -64.52% | -47.62% |
| Expenses | ₹796 cr | ₹737 cr | +8.01% | +31.79% |
| Operating profit | ₹173 cr | ₹192 cr | -9.90% | -2.81% |
| Operating margin (%) | 17.85% | 20.67% | — | — |
| Interest | ₹56 cr | ₹52 cr | +7.69% | +1.82% |
| Depreciation | ₹55 cr | ₹55 cr | +0.00% | +3.77% |
| Profit before tax | ₹73 cr | ₹116 cr | -37.07% | -19.78% |
| Tax | ₹0 cr | ₹9 cr | -100.00% | -100.00% |
| Net profit | ₹73 cr | ₹107 cr | -31.78% | -10.98% |
| EPS (₹) | ₹4.85 | ₹6.55 | -25.95% | +0.83% |
Operating margin of 17.85% compares with a Healthcare sector median of 20.27% across 44 peers that have reported Q2FY27.
What to watch
- Whether operating margin stabilises above 17.85% after two consecutive sequential declines.
- Whether expense growth moderates from +31.79% YoY against revenue growth of +23.91%.
- Whether profit remains supported by a 0.00% tax rate and other income equal to 15.07% of pre-tax profit.