Novartis India Limited Earnings Summary — Q1 FY2027
Novartis India Reports Strong Q1 Performance with 18.6% Revenue Growth and Profit Surge
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue has increased for 3 consecutive quarters.
- Revenue of ₹104 Cr is 18.6% higher year-on-year.
- Revenue has compounded at 11.6% annualised over the last 10 quarters.
- Revenue is at its highest level in 10 quarters.
- Net profit has reached its highest level in 10 quarters.
- Net profit of ₹32 Cr is 16.6% above the same quarter last year.
- Profit growth is trailing revenue growth this quarter.
- Net profit has compounded at 41.8% annualised across the period.
- Operating margin stands at 33.6% in Q1 FY2027.
- Operating margin expanded by 252 bps year-on-year.
- Over the last two years operating margin has expanded by 766 bps.
- PBT margin is 41.6%.
- Expense growth of 14.2% remained below revenue growth of 18.6%.
- Operating profit of ₹35 Cr is 28.2% higher year-on-year.
- Operating leverage continues to improve.
- 4 of the last 6 measured quarters delivered year-on-year revenue growth.
- Overall quarterly business momentum scores 83/100 (Strong) on the latest 10 quarters.
- Business momentum remains positive heading into the next quarter.
Quarterly Financials
Last 10 Reported Quarters • All figures in ₹ Crore • Margins in %
| Metric | Trend | Latest Q1 FY2027 | Q4 FY2026 | Q3 FY2026 | Q2 FY2026 | Q1 FY2026 | Q4 FY2025 | Q3 FY2025 | Q2 FY2025 | Q1 FY2025 | Q4 FY2024 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | Improving | 104 | 91 | 86 | 90 | 88 | 84 | 93 | 87 | 92 | 81 |
| Expenses | Stable | 69 | 70 | 64 | 66 | 60 | 60 | 67 | 69 | 68 | 70 |
| Operating Profit | Improving | 35 | 21 | 22 | 24 | 27 | 24 | 26 | 18 | 24 | 11 |
| Operating Margin | Improving | 33.6% | 22.8% | 26.0% | 26.4% | 31.1% | 28.5% | 27.5% | 20.6% | 26.0% | 13.8% |
| Other Income | Stable | 9 | 10 | 9 | 9 | 11 | 11 | 11 | 10 | 10 | 10 |
| Interest | Volatile | 0 | 0 | 1 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Depreciation | Volatile | 0 | 0 | 0 | 1 | 1 | 1 | 1 | 1 | 1 | 0 |
| Profit Before Tax | Improving | 43 | 30 | 30 | 33 | 37 | 34 | 35 | 28 | 34 | 21 |
| Tax | Volatile | 11 | 5 | 14 | 8 | 10 | 5 | 10 | 7 | 8 | 7 |
| Net Profit | Improving | 32 | 25 | 16 | 24 | 28 | 29 | 25 | 20 | 26 | 15 |
| Net Margin | Improving | 31.0% | 27.9% | 18.7% | 26.8% | 31.6% | 34.9% | 27.4% | 23.4% | 27.9% | 18.1% |
Key Takeaways
- Revenue from operations grew by 18.6% year-on-year to ₹1,038.1 million, driven by the core pharmaceutical segment.
- The company maintains a highly concentrated customer base, with one single customer accounting for ₹532.9 million (over 50%) of revenue in the quarter.
- A significant change in shareholding is underway as Novartis AG agreed to sell its 70.68% stake to a group of acquirers including WaveRise Investments and ChrysCapital.
- The mandatory open offer for public shareholders, triggered by the share purchase agreement, concluded on June 24, 2026.
- Operating profitability improved significantly as total expenses remained relatively flat at ₹693.8 million despite higher sales volumes.
- The balance sheet remains robust and debt-free, with a lean 'Pharmaceutical Business' operating model focused solely on the Indian market.
Management Guidance
The company continues to monitor the impact of the four new Labour Codes notified by the Government of India, having already recognized an incremental impact of ₹7.9 million for employee benefits in the previous fiscal year.
Sentiment Shift
Improving
Financial performance showed marked improvement in both top and bottom lines compared to the previous quarter and the same period last year, while the clarity on the promoter exit and open offer provides a settled corporate outlook.
Outlook
The outlook is dominated by the impending change in control to the WaveRise/ChrysCapital consortium, which will see the acquirers classified as the new 'promoters'. The business remains specialized in therapeutic areas like Neuroscience and Pain Management under an asset-light wholesale model.
From the Annual Report (Key Quotes)
“Novartis AG has agreed to sell to the Acquirers... 1,74,50,680 fully paid-up equity shares of the Company representing 70.68% of the equity share capital.”
“The Company has a single operating segment namely 'Pharmaceutical Business' and generates revenues from its operations in India.”
“The said open offer is closed on 24 June 2026.”
Official Quarterly Documents
Ask AI about this quarter
This summary is AI-generated from Novartis India Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.