Novartis India Q4 Profit Slips 14% To ₹25 Crore Despite Higher Revenue

Mumbai: Novartis India Limited reported a 13.8 percent year-on-year decline in net profit to Rupees 25.3 crore for the quarter ended March 31, 2026, even as revenue from operations rose 7.9 percent to Rupees 90.5 crore. The pharmaceutical company recorded improved sales momentum during the quarter, with revenue rising from Rupees 86 crore in Q3 FY26 and Rupees 83.9 crore in the corresponding quarter last year.

Total income during the quarter stood at Rupees 91.1 crore compared with Rupees 84.6 crore in Q4 FY25 and Rupees 90.7 crore in the preceding quarter. Profit before tax declined to Rupees 30.1 crore from Rupees 33.9 crore a year ago, although it edged up sequentially from Rupees 29.6 crore in Q3 FY26.

Sequential Recovery Supports Earnings

On a quarter-on-quarter basis, Novartis India posted a strong recovery in profitability. Net profit climbed 56.9 percent from Rupees 16.1 crore reported in Q3 FY26, aided by improved operational performance and lower comparative tax impact. Earnings per share rose to Rupees 10.23 during the quarter against Rupees 6.52 in the previous quarter, though it remained lower than Rupees 11.87 reported in Q4 FY25.

The company’s quarterly expenses remained elevated, mainly due to higher purchases of stock-in-trade and employee benefit costs. Total expenses for FY26 increased to Rupees 210.6 crore from Rupees 199.1 crore in FY25.

FY26 Revenue Rises, Annual Profit Declines

For the full financial year FY26, revenue from operations increased 5.3 percent to Rupees 354.2 crore compared with Rupees 336.3 crore in FY25. Total income rose to Rupees 360.9 crore from Rupees 338.4 crore in the previous financial year.

However, annual net profit declined 7.6 percent to Rupees 93.2 crore from Rupees 100.9 crore in FY25, while profit before tax slipped marginally to Rupees 129.7 crore from Rupees 130.4 crore a year ago. Current tax expenses for FY26 stood at Rupees 31.5 crore against Rupees 29.5 crore in the previous year.

Dividend Recommendation And Open Offer Update

The board of directors recommended a dividend of Rupees 8 per equity share of face value Rupees 5 each for FY26, higher than the Rupees 7.25 dividend declared in FY25. During the year, Novartis AG also entered into agreements to acquire up to 76 percent stake in Novartis India through a share purchase agreement and mandatory open offer process.

The company ended FY26 with cash and cash equivalents of Rupees 52.5 crore, while total equity rose to Rupees 817.9 crore from Rupees 784.9 crore in FY25. BSR & Co LLP issued an unmodified audit opinion on the company’s financial statements.

Disclaimer: This report is based on company filings and is not investment advice.