Quarter Ended: March 2026
Novartis India Limited – Q4 FY26 Results
NSE
novarind
BSE
500672
Novartis India reported relatively stable quarterly and annual revenue performance in FY26, but profitability declined due to higher operating expenses, increased employee costs, and lower inventory gains.
key financial highlights
- Revenue from Operations:
- Revenue (Q4 FY26): ₹905.5 Million
- QoQ Change: +5.41%
- YoY Change: +7.95%
- Previous Quarter (Q3 FY26): ₹859 Million
- Previous Year (Q4 FY25): ₹838.8 Million
- Revenue (Q4 FY26): ₹905.5 Million
- Profit After Tax (PAT):
- PAT (Q4 FY26): ₹252.5 Million
- QoQ Change: +56.93%
- YoY Change: -13.82%
- Previous Quarter (Q3 FY26): ₹160.9 Million
- Previous Year (Q4 FY25): ₹293.0 Million
- PAT (Q4 FY26): ₹252.5 Million
- Analysis:
- Revenue: Revenue showed moderate growth both sequentially and annually, supported by stable pharmaceutical demand and product portfolio execution.
- Profit: Quarterly profitability recovered strongly from the previous quarter, but remained below last year’s level due to cost pressures and lower operating leverage.
- Revenue: Revenue showed moderate growth both sequentially and annually, supported by stable pharmaceutical demand and product portfolio execution.
Margin Analysis
Drivers:
- Increase in employee benefit expenses
- Higher other operating expenses
- Lower inventory adjustment benefits
- Slight increase in finance costs
- Reduced operating leverage
Insight:
- The company preserved profitability stability, but expense growth outpaced revenue expansion.
Segment insight
Business Summary:
Novartis India operates in the pharmaceutical and healthcare sector focusing on branded formulations and healthcare products.
Key Characteristics:
- Strong multinational pharmaceutical parentage
- Branded prescription portfolio
- Asset-light operational model
- High cash and treasury position
- Stable domestic pharmaceutical exposure
Earning quality check
Key Drivers:
- Operating cash flow remained healthy at ₹467.3 Million.
- Working capital remained largely stable.
- Significant funds parked in fixed deposits and bank balances.
- Cash and cash equivalents remained stable at ₹525 Million.
- Company maintained strong treasury and liquidity profile.
- Finance costs remained low.
Interpretations:
- Earnings quality remains healthy with strong cash generation and conservative balance sheet management.
balance sheet Analysis
- Total Assets: ₹9,782.7 Million
- Total Liabilities: ₹1,604.4 Million
Insight:
- Novartis India continues to maintain a highly conservative and financially strong balance sheet with low leverage and significant liquidity reserves.
Key Observations:
- Strong cash-rich balance sheet.
- Bank balances increased to ₹6,152 Million.
- Inventories increased to ₹533.2 Million.
- Equity strengthened during FY26.
- Liabilities remained controlled and low.
key risks
- Pricing pressure in pharmaceutical markets
- Regulatory compliance risks
- Dependence on product portfolio performance
- Currency-related procurement exposure
- Competitive pressure from generic drug manufacturers
- Margin sensitivity due to rising operational costs
management strategy signals
Focus Area:
- Portfolio optimization
- Operational efficiency
- Stable cash generation
- Conservative treasury management
- Focus on branded pharmaceutical products
Financial metrics table
| Particular | Q4 FY26 | Q.O.Q | Y.O.Y |
|---|---|---|---|
| Total Income | ₹1,005.6 Million | +6.25% | +6.40% |
| PBT | ₹301.4 Million | +1.65% | -11.06% |
| PAT | ₹252.5 Million | +56.93% | -13.82% |
Novartis India delivered stable operational performance in FY26 with moderate quarterly revenue growth and strong liquidity management.
While annual profitability declined due to higher operating costs and margin pressure, the company continues to maintain a highly cash-rich balance sheet and healthy operational cash flows.
The business remains financially resilient, though future growth will depend on portfolio expansion, pricing environment, and operational efficiency improvements.
Official Exchange Filing: Novartis India Limited
Quarterly Performance Context
FISCAL YEAR
2025-2026
AUDIT STATUS
REVIEWED