Are Astrazeneca Phar latest results good or bad?

AstraZeneca Pharma India has reported its financial results for Q2 FY26, showcasing a notable revenue growth of 35.81% year-on-year, with net sales reaching ₹526.31 crores. This marks a continuation of a strong revenue trajectory, as the company has achieved sequential growth for seven consecutive quarters. The quarter-on-quarter growth was 9.54%, building upon the previous quarter's performance.
However, the profitability metrics indicate some challenges. The net profit for the quarter was ₹55.83 crores, reflecting a sequential decline of 4.15%. Additionally, the operating margin, excluding other income, contracted to 15.41%, down 257 basis points from the prior quarter. This decline in margins suggests that while revenue growth is robust, the company is facing pressures related to costs, particularly in employee expenses and overall cost structure management.

On a half-yearly basis, AstraZeneca Pharma India reported net sales of ₹1,006.79 crores and a net profit of ₹114.08 crores, showing a year-on-year growth of 30.52%, which is a significant turnaround from the previous year's loss-making position. The company's return on equity remains exceptional at 27.58%, indicating strong capital efficiency.

Despite these positive revenue trends, the recent performance has led to an adjustment in the company's evaluation, reflecting the mixed signals from the profitability side. Investors may want to monitor the company's ability to stabilize and improve its operating margins while maintaining its revenue growth momentum in the upcoming quarters. Overall, AstraZeneca Pharma India continues to demonstrate strong operational capabilities, but the pressure on margins requires careful attention.