Desh Rakshak Aushdhalaya Sees Sharp Revenue Drop in Q1 FY27
The ayurvedic products maker reported a steep sequential and yearly decline in revenue, though profitability improved on a margin basis.
Desh Rakshak Aushdhalaya's Q1 FY27 revenue fell sharply both year-on-year and quarter-on-quarter. Profit also declined, but net profit margin improved compared to the same period last year.
Desh Rakshak Aushdhalaya reported a sharp contraction in its first-quarter earnings for fiscal 2027. Both revenue and profit fell significantly compared to the previous quarter and the same period last year, indicating a challenging start to the new financial year for the ayurvedic products maker. However, a closer look reveals a silver lining in the form of improved profitability on a per-rupee-of-sales basis.
The company's revenue for the quarter ended June 2026 stood at ₹0.83 crore, a steep 76% drop from the ₹3.46 crore reported in the preceding quarter (Q4 FY26). Compared to the first quarter of the last fiscal year (Q1 FY26), revenue was down 36.2%. Profit followed a similar trajectory, declining 73.3% sequentially and 20% year-on-year to ₹0.08 crore.
Despite the top-line pressure, the company managed its costs effectively. The net profit margin expanded to 9.6%, up 190 basis points from the 7.7% margin in Q1 FY26. This suggests that while sales volume was weak, the business preserved a greater share of each rupee earned as profit.
A review of the last five quarters shows a volatile performance, with a strong Q4 FY26 acting as an outlier.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin
| Metric | CurrentQ1 FY27 | PreviousQ4 FY26 | Same quarter LYQ1 FY26 |
|---|---|---|---|
| Period Ended | June 2026 | March 2026 | June 2025 |
| Revenue (₹ Cr) | 0.83YoY -36% | 3.46 | 1.30 |
| Profit (₹ Cr) | 0.08YoY -20% | 0.30 | 0.10 |
| Net Profit Margin | 9.6%YoY +25% | 8.7% | 7.7% |
Key Points
- The trailing twelve-month (TTM) revenue stands at ₹6.64 crore with a profit of ₹0.55 crore, resulting in a TTM net profit margin of 8.3%.
- The company maintains a conservative balance sheet with a low debt-to-equity ratio of 0.21 and a healthy current ratio of 2.49.
- At a P/E of 27.7, the stock trades at a significant discount to the pharmaceutical industry average P/E of 51.0.
The immediate challenge for Desh Rakshak Aushdhalaya is to reignite sales growth in the coming quarters while sustaining the recent margin improvement.
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· DESH RAKSHAK AUSHDALAYA
(BSE)
ISIN: INE971E01016
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