Pfizer Q1 FY27 Results (NSE: PFIZER)
Signal: Margin expansion
The read
Margin trajectory inflected positively — EBITDA margin at 37.5% is the highest in recent quarters, gaining 338bps YoY on raw material cost moderation and tight cost control (employee / other expenses grew well below revenue). Revenue growth of 8.3% YoY is steady but decelerated from the 3-yr CAGR of 10.5%. Other income dropped sharply (-33% YoY) but remained a large contributor to PAT (22% of pre-tax profit). No exceptional items this quarter vs heavy separation costs in the prior year. PAT beat was modest at +2.3% YoY, held back by lower other income.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹653.17 Cr | 8.31% | 3.81% |
| EBIT | ₹276.68 Cr | 6.61% | |
| Net profit | ₹204.47 Cr | 2.33% | |
| EPS | ₹44.69 | 2.31% | |
| EBIT margin | 37.50% |
P&L walk
Standalone-only filer (no subsidiaries) — revenue grew 8.3% YoY to ₹653 Cr; gross margin expanded 296bps YoY to 63.2% as raw material cost grew only 0.5% vs 8.3% revenue growth (input cost moderation / mix shift); employee cost grew just 2.3% YoY, leading to 338bps YoY EBITDA margin expansion to 37.5%; other income declined 33% YoY but at ₹45 Cr remained a significant profit contributor; PAT grew 2.3% YoY to ₹204 Cr, tracking EBITDA growth; EPS at ₹44.69.
Segments
Single segment — Pharmaceuticals; no segment split in filing.
Key positives
- EBITDA margin expanded ~338bps YoY to 37.5%, the highest in at least four quarters, driven by raw material cost moderation (RM-to-sales 36.8% vs 39.8% YoY).
- Employee cost grew only 2.3% YoY vs 8.3% revenue growth — operating leverage evident in fixed-cost lines.
- No exceptional charges this quarter (vs ₹9.04 Cr exceptional in Q4FY26 and heavy separation costs in FY26).
- Finance cost negligible at ₹1.46 Cr, reflecting near-zero net debt (D/E 0.02x).
Key concerns
- Other income declined 33% YoY to ₹44.84 Cr — if this trend continues, PAT growth could be pressured despite operating improvement.
- Revenue growth of 8.3% YoY is below the company's 3-year CAGR of 10.5%, suggesting some deceleration.
- CFO resignation announced effective October 8, 2026 — leadership transition risk in finance function.
Research and educational content only. Not investment advice.