Novartis India Q1 FY26: Profit Rises, Revenue Slips

What the Jun 25 quarter data shows

Novartis India’s results for the quarter ended Jun 25 point to a mixed operating picture. Total revenue came in at Rs 87.55 crore, lower than Rs 92.29 crore in the year-ago period, even as operating income improved. The company reported operating income of Rs 26.71 crore versus Rs 23.42 crore in Jun 24, indicating better operating performance despite the revenue decline. Net income for the quarter was Rs 27.62 crore, up from Rs 25.74 crore a year ago. The quarter’s numbers also include a sequential comparison against the Mar 26 period, as presented in the dataset. Overall, the quarter shows resilience in profitability lines, but the top line remains a key metric to track.

Revenue and expense lines in focus

Total revenue for the quarter ended Jun 25 was reported at Rs 87.55 crore. On the sequential comparison provided, revenue is shown against Rs 90.55 crore in Mar 26. Total operating expense stood at Rs 60.84 crore, compared with Rs 68.87 crore in Jun 24, reflecting a lower cost base year-on-year. Depreciation and amortization were Rs 0.53 crore versus Rs 0.55 crore in the year-ago quarter. Other operating expenses were Rs 8.28 crore compared with Rs 8.88 crore in Jun 24. Selling, general and administration (SG&A) expenses were Rs 5.26 crore in Jun 25 versus Rs 5.53 crore a year ago.

Operating income improves year-on-year

Operating income increased to Rs 26.71 crore in the Jun 25 quarter, up from Rs 23.42 crore in Jun 24. The dataset also provides a comparison against operating income of Rs 20.20 crore in the Mar 26 period. This implies operating profitability strengthened on both the year-on-year and the provided sequential basis. With operating expenses lower year-on-year and operating income higher, the operating outcome suggests a more favourable cost-to-income relationship during the quarter. However, the revenue decline year-on-year means the improvement is not purely volume-led, based on the numbers available. Investors typically watch whether such profit improvement sustains when revenue growth is under pressure.

Net income and tax line movement

Net income for the quarter ended Jun 25 was Rs 27.62 crore. This compares with Rs 25.74 crore in the year-ago quarter (Jun 24), indicating an increase in reported profit. Net income before taxes was Rs 37.22 crore versus Rs 33.68 crore in Jun 24. The dataset also reports net income before taxes of Rs 30.14 crore in Mar 26, which provides another reference point for the quarter’s profitability. While tax expense is not separately detailed in the provided table, the movement between pre-tax income and net income implies taxes and other adjustments played a role. The available figures still show a stronger earnings outcome year-on-year.

EPS trend in the quarter

Diluted normalized EPS for the Jun 25 quarter was Rs 11.19. This compares with Rs 10.42 in Jun 24, indicating improved per-share earnings year-on-year. Against the Mar 26 figure of Rs 10.23, EPS is also higher in the Jun 25 quarter as presented. In addition to quarterly EPS, the longer period table in the dataset lists basic EPS at Rs 40.87 for Mar 25 and Rs 34.50 for Mar 24. These annual EPS figures provide context on earnings delivery across periods, though they are not directly comparable to a single quarter’s EPS.

Key quarterly numbers at a glance

All figures below are in Rs crore, except EPS.

Longer-term profit snapshot from the dataset

The article data also includes a profit and loss account excerpt for recent full-year periods. Profit or loss for the period is listed at Rs 100.90 crore for Mar 25 versus Rs 85.19 crore for Mar 24. The same table shows Rs 103.36 crore for Mar 23, Rs -3.72 crore for Mar 22, and Rs 20.90 crore for Mar 21. This sequence highlights variability across years, including a loss in Mar 22, followed by positive profitability in subsequent periods. Separately, the data shows profit before tax at Rs 130 crore for Mar 2025 and Rs 123 crore for Mar 2024, based on the multi-year summary excerpt included.

Global Novartis context included in the release

Alongside Novartis India’s numbers, the provided text contains highlights from Novartis’ wider quarterly communication. It states net sales grew 15% in constant currencies and 12% in USD terms, and core operating income rose 27% in constant currencies and 23% in USD terms, supported by product performance including Entresto, Kisqali, Kesimpta, Cosentyx, Leqvio and Scemblix. It also notes a core operating income margin of 42.1%, up 400 basis points in constant currencies, and mentions innovation milestones and approvals during the period. The text further indicates that full-year 2025 guidance was raised, with sales expected to grow at a high single-digit rate and core operating income expected to grow low double-digit. These points are presented as broader group-level context and not as Novartis India-specific drivers in the dataset.

Market impact and why the quarter matters

From an investor lens, the most direct takeaway from Novartis India’s Jun 25 quarter is the divergence between the top line and profitability. Revenue declined year-on-year, but operating income, pre-tax income and net income improved. This combination often leads the market to focus on cost discipline, product mix, and the sustainability of margins when revenue growth is not strong. SG&A expenses were slightly lower year-on-year, and total operating expenses were meaningfully lower versus Jun 24, which aligns with improved operating income. The dataset does not provide a stock price reaction or management commentary specific to Novartis India, so the market impact assessment is limited to the financial lines available.

Conclusion

For the quarter ended Jun 25, Novartis India reported Rs 87.55 crore in revenue, Rs 26.71 crore in operating income, and Rs 27.62 crore in net income, with EPS at Rs 11.19. The key theme in the reported numbers is improved profitability despite a year-on-year revenue decline. Investors tracking the company will likely watch whether revenue stabilises while the lower expense base is maintained in subsequent quarters. Any further clarity would typically come from subsequent quarterly disclosures and updated company communications.