Novartis India Reports 16.6% Profit Rise in Q1FY26, Driven by Revenue Growth and Margin Expansion
核心洞察
Novartis India Limited posted a standalone net profit of ₹32.21 crore for Q1FY26, a 16.59% increase from ₹27.62 crore in the same quarter last year.
Revenue from operations rose 18.6% year-on-year to ₹103.81 crore, while EBITDA margin expanded to 33.6% from 30.02%, reflecting improved operational efficiency.
The company's majority stake (70.68%) is being acquired by WaveRise Investments, ChrysCapital Fund X (搜索), and Two Infinity Partners (搜索), with the open offer closing on 24 June 2026.
Novartis India Limited has reported a 16.59% rise in standalone net profit after tax for the quarter ended 30 June 2026, reaching ₹32.21 crore compared to ₹27.62 crore in the corresponding quarter of the previous fiscal year. The Mumbai-based pharmaceutical company disclosed the results in an exchange filing on 23 July 2026, following approval by the Board of Directors and review by the Audit Committee and statutory auditors BSR & Co. LLP.
Revenue from operations for the quarter stood at ₹103.81 crore, marking an 18.6% increase from ₹87.55 crore in the same period last year. Total income reached ₹112.55 crore, up from ₹98.16 crore year-on-year.
Financial Performance and Margin Expansion
The company's profit before tax (PBT) rose to ₹43.17 crore, compared to ₹37.22 crore in the prior-year quarter. Earnings per share (EPS) increased to ₹13.05, up from ₹11.19 a year ago.
EBITDA for the quarter improved to ₹34.83 crore, compared to ₹26.28 crore in Q1FY25, while the EBITDA margin expanded to 33.6% from 30.02% year-on-year. The company attributed this performance to robust operational efficiency and top-line growth, with total expenses of ₹69.38 crore against ₹60.94 crore in the corresponding quarter.
Ownership Transition Underway
In a significant corporate development, Novartis AG entered an agreement on 19 February 2026 to sell 1,74,50,680 fully paid-up equity shares, representing 70.68% of Novartis India Limited's equity capital, to WaveRise Investments Limited (搜索), ChrysCapital Fund X (搜索), and Two Infinity Partners (搜索). The acquirers subsequently made a public announcement for an open offer on 20 February 2026, which closed on 24 June 2026.
Regulatory Impact of New Labour Codes
The company assessed the impact of four new Labour Codes notified by the Government of India on 21 November 2025. This assessment resulted in an increase in the provision for employee benefits by ₹79 lakh for the financial year ended 31 March 2026. The impact was recognized as employee benefit expense in the current reporting period in accordance with Ind AS 19. Novartis India stated it continues to monitor Central and State Rules regarding the Labour Codes and will provide appropriate accounting effects based on future developments.
Novartis India operates a single segment, the Pharmaceutical Business, within India.