Kopran's Q1 Profit Falls Despite Higher Revenue as Margins Narrow
The pharmaceutical firm's first-quarter profit declined 10% year-on-year, even as sales grew, highlighting pressure on profitability.
Kopran reported a 13.9% rise in Q1 FY27 revenue, but profit fell 10.1% year-on-year. Net profit margin contracted sharply from the previous quarter.
Kopran's first-quarter results for FY27 present a mixed picture: revenue growth was overshadowed by a significant drop in profitability. While sales increased compared to the same period last year, profit fell, and the company's net profit margin narrowed considerably from the preceding quarter.
The pharmaceutical company's revenue for the quarter ended June 2026 stood at ₹154 crore, a 13.9% increase year-on-year. However, profit after tax (PAT) declined 10.1% to ₹6.7 crore. The sequential decline was even more pronounced, with revenue down 34.2% and profit down 64.5% from the strong March 2026 quarter. This resulted in a net profit margin of 4.4%, down from 8.1% in Q4 FY26 and 5.5% in Q1 FY26.
A look at the recent quarterly trajectory shows volatile performance.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin (%)
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Revenue (₹ Cr) | 154.0YoY +14% | 234.0 | 135.2 |
| Profit (₹ Cr) | 6.7YoY -11% | 18.9 | 7.5 |
| Net Profit Margin (%) | 4.4YoY -20% | 8.1 | 5.5 |
The trailing twelve-month (TTM) net profit margin stands at 3.6%, indicating the latest quarter's profitability, while lower than the prior year, is still above the company's recent average.
Key Points
- The stock has delivered a strong one-year return of 22.0%, significantly outperforming its three-year CAGR of 2.7%.
- Kopran trades at a P/E of 20.2, a notable discount of 45.5% to the pharmaceutical industry average P/E of 37.2.
- The company maintains a conservative balance sheet with a debt-to-equity ratio of 0.29.
The immediate challenge for Kopran is to stabilize its profit margins and demonstrate more consistent quarterly earnings, even as it benefits from a discounted valuation relative to its sector.
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· KOPRAN
(BSE)
ISIN: INE082A01010
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