Shares of Bajaj Healthcare Ltd fell 3.23% to ₹512.55 on the NSE on Tuesday, even after the company reported a 65.9% year-on-year jump in net profit for the first quarter of FY26. The decline appears to be driven by muted operational performance and margin pressure, which overshadowed the bottom-line growth.
The company reported a net profit of ₹11.8 crore for the quarter ended June 30, 2025, compared to ₹7.1 crore in the same quarter last year. Revenue from operations rose 12.5% YoY to ₹149 crore.
However, EBITDA remained flat at ₹24.5 crore, and the EBITDA margin fell to 16.5% from 18.5% a year ago. The sequential improvement in margin to 17% from 15.1% was not enough to excite investors, especially in the backdrop of input cost pressures and a challenging pricing environment.
According to Managing Director Anil Jain, the company witnessed strong growth in API exports (up 68.4% YoY) and formulations (up 41.1% YoY), driven by demand in regulated markets and deeper market penetration. However, domestic API pricing pressures impacted overall profitability.
Despite the earnings beat on net profit, the market appears to have reacted to the soft margin profile and flat EBITDA, suggesting concerns about sustainability of earnings in the near term, especially in the face of rising raw material costs.
