Wockhardt Limited Earnings Summary — Q2 FY2026
Wockhardt Achieves Turnaround with Consolidated Net Profit and Strategic US Exit
Quarterly Business Intelligence
AI Quarterly Scorecard™
Computed deterministically from the last 10 reported quarters.
Quarterly Business Momentum
- Revenue declined 3.7% sequentially in Q1 FY2027.
- Revenue of ₹929 Cr is 25.9% higher year-on-year.
- Revenue has compounded at 13.4% annualised over the last 10 quarters.
- Net profit of ₹106 Cr is 217.8% above the same quarter last year.
- Profit growth is outpacing revenue growth, pointing to positive operating leverage.
- Net profit has compounded at 657.1% annualised across the period.
- Operating margin stands at 20.7% in Q1 FY2027.
- Operating margin expanded by 1091 bps year-on-year.
- Over the last two years operating margin has expanded by 836 bps.
- PBT margin is 12.5%.
- Expense growth of 10.7% remained below revenue growth of 25.9%.
- Operating profit of ₹192 Cr is 166.7% 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 70/100 (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 | 929 | 965 | 888 | 782 | 738 | 743 | 721 | 809 | 739 | 700 |
| Expenses | Stable | 737 | 740 | 711 | 604 | 666 | 679 | 593 | 699 | 648 | 759 |
| Operating Profit | Improving | 192 | 225 | 177 | 178 | 72 | 64 | 128 | 110 | 91 | -59 |
| Operating Margin | Volatile | 20.7% | 23.3% | 19.9% | 22.8% | 9.8% | 8.6% | 17.8% | 13.6% | 12.3% | -8.4% |
| Other Income | Volatile | 31 | 67 | 15 | 21 | -77 | 15 | 8 | 9 | 30 | 10 |
| Interest | Stable | 52 | 50 | 60 | 55 | 48 | 48 | 60 | 73 | 73 | 73 |
| Depreciation | Stable | 55 | 53 | 65 | 53 | 56 | 53 | 55 | 55 | 54 | 58 |
| Profit Before Tax | Volatile | 116 | 189 | 67 | 91 | -109 | -22 | 21 | -9 | -6 | -180 |
| Tax | Improving | 9 | 25 | 6 | 9 | -1 | 23 | 1 | 7 | 10 | -3 |
| Net Profit | Volatile | 106 | 166 | 59 | 78 | -90 | -25 | 14 | -22 | -14 | -169 |
| Net Margin | Volatile | 11.4% | 17.2% | 6.6% | 10.0% | -12.2% | -3.4% | 1.9% | -2.7% | -1.9% | -24.1% |
Key Takeaways
- Wockhardt reported a consolidated net profit of ₹82 crore in Q2 FY2026, a significant turnaround from a loss of ₹108 crore in the preceding quarter.
- The company officially exited the US generic pharmaceutical business by filing for voluntary liquidation of Morton Grove Pharmaceuticals and Wockhardt USA LLC on July 11, 2025.
- A one-time exceptional charge of ₹97 crore was recorded related to the deconsolidation and impairment of these US entities.
- Operating margins saw a sharp expansion, reaching nearly 19% in H1 FY26, the highest level in approximately a decade.
- The Board appointed Mr. Om Prakash Bhatt, former Chairman of State Bank of India, as an Additional Independent Director to strengthen governance.
- Net debt remains a focal point, though liquidity was bolstered by long-term borrowing proceeds of ₹550 crore during the half-year period.
- Consolidated revenue showed a slight YoY decline of 5.8% to ₹762 crore, but sequential growth of 3.3% suggests stabilization post-restructuring.
Management Guidance
Management is focusing on a recovery phase driven by high-science biopharmaceuticals and NCE commercialization, specifically targeting anti-infectives. The strategic pivot away from the loss-making US generics segment is intended to stabilize the balance sheet and refocus resources on the UK and India branded markets.
Sentiment Shift
Improving
The shift from recurring losses to a quarterly net profit, combined with the removal of the loss-making US generics overhang, marks a pivot toward operational viability.
Outlook
The outlook is contingent on the successful commercialization of the NCE pipeline (including Zaynich) and continued margin expansion in the UK and Indian segments to offset legacy debt obligations.
From the Annual Report (Key Quotes)
“The Group has taken decision to exit the US generic pharmaceutical business... Consequently, the Group has lost control over these subsidiaries.”
“Mr. Om Prakash Bhatt... brings years of experience across a wide variety of strategic and operational roles... including for 5 years as Chairman and CEO of State Bank of India.”
Official Quarterly Documents
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This summary is AI-generated from Wockhardt Limited's latest quarterly filing and earnings call. For informational purposes only — not investment advice.