Pfizer Q2 FY27 Results (NSE: PFIZER)
Signal: Growth reaccelerated
The read
The operating trajectory weakened despite headline growth: Q2 revenue rose 13.2% YoY, but operating margin compressed 454bps to 35.93% and gross margin fell 542bps to 59.09%; the 65.7% PAT increase to ₹313.25 crore was largely a one-off ₹132.06 crore Minipress XL payment, while H1 operating cash flow declined 40.1% to ₹358.99 crore.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹726.86 Cr | +13.2% | +11.3% |
| Net profit | ₹313.25 Cr | +65.7% | |
| EPS | ₹68.47 | +65.7% | |
| EBIT margin | 35.93% |
P&L walk
Revenue increased to ₹726.86 crore, +13.2% YoY and +11.3% QoQ, but gross margin compressed 542bps YoY to 59.09%; operating margin fell 454bps to 35.93%, while PAT rose 65.7% to ₹313.25 crore mainly because of the ₹132.06 crore exceptional Minipress XL payment.
Key positives
- Revenue increased to ₹726.86 crore, +13.2% YoY and +11.3% QoQ, maintaining double-digit sequential and annual growth.
- Cost of materials consumed declined 19.3% YoY to ₹56.51 crore, reducing materials intensity to 7.78% of revenue from 10.90%.
- Employee benefits expense fell 3.4% YoY to ₹91.43 crore and other expenses fell 14.3% to ₹76.96 crore, limiting the operating-cost drag.
- EPS rose 65.7% YoY to ₹68.47 and tracked PAT, with paid-up capital unchanged at ₹45.75 crore.
Key concerns
- Gross margin compressed 542bps YoY to 59.09% and operating margin fell 454bps to 35.93%, a second consecutive sequential margin decline from 37.50% in Q1FY27.
- Profit before exceptional items was ₹290.77 crore, only 13.9% above ₹255.37 crore YoY, versus reported PAT growth of 65.7%.
- H1 operating cash flow declined 40.1% YoY to ₹358.99 crore, while trade receivables increased to ₹241.41 crore from ₹181.80 crore at March 31, 2026.
- Finance costs increased 57.3% YoY to ₹3.35 crore, although the absolute amount remains small.
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