P&G Health Q1: revenue +7% YoY but core PAT down ~3% adjusted for one-off land-sale gain
PAT +45.27% YoY · revenue +7.38% · margins compressing
₹363.73 Cr
+7.38% YoY
₹96.15 Cr
+45.27% YoY
26.16%
+6.9pp YoY
₹57.92
Procter & Gamble Health's standalone revenue from operations (the company has no subsidiary, associate or JV, so standalone is the only basis) grew 7.4% YoY to ₹363.73 Cr for the quarter ended June 30, 2026 (₹338.74 Cr a year ago), though it slipped 1.8% sequentially from ₹370.45 Cr in Q4 FY26. Reported net profit rose 45.3% YoY to ₹96.15 Cr (₹66.18 Cr a year ago) and 1.6% QoQ (₹94.60 Cr), but the headline is inflated by a ₹31.80 Cr exceptional gain on the sale of the company's Worli office premises (sold for ₹33.34 Cr against a carrying value of ₹1.54 Cr). Stripping that out, adjusted PAT was approximately ₹64.35 Cr — down ~2.8% YoY and ~32% QoQ — meaning core profitability actually declined even as revenue grew, the opposite of what the reported number implies.
Q1 FY-2027 vs prior quarters
Core operating profit (profit before exceptional items and tax) was ₹97.32 Cr, or 26.8% of revenue — roughly flat against 26.2% a year ago but down sharply from ~36% in the seasonally elevated March-26 quarter. The adjusted net margin nonetheless eased to ~17.7% from 19.3% YoY, pointing to a heavier tax load: total tax of ₹32.97 Cr works out to a 25.5% effective rate on reported PBT, and since the filing does not bifurcate tax between the core business and the one-off property gain, the core tax rate — and hence the adjusted PAT figure — carries some estimation uncertainty. There is no formal management guidance on record from prior quarters, and a web search found none specific to this entity (a same-named but distinct listed peer, P&G Hygiene & Health Care, is often conflated with it), so the print cannot be benchmarked against a stated outlook; the stock is a thinly covered, low-float name with no visible broker consensus for this quarter, so a street beat/miss call is not possible. No separate management press release accompanied the filing. The quarter also carried governance developments — senior management changes announced June 25, 2026 and the AGM date moved to September 3, 2026 — alongside the FY26 final dividend of ₹45/share (record date August 21, 2026) declared earlier in June; none affect this quarter's P&L directly but are relevant context around the print.
The stock went into the print at ₹6,287, up 0.2% over the past month of trading.
For context: this is the highest quarterly PAT in the last 6 quarters on our records; PAT has now risen for 2 consecutive quarters.
What the summary numbers don't show
EPS ₹57.92 reported (₹38.77 before the exceptional item), vs ₹39.87 in Q1 FY26
Sole reportable segment is Pharmaceuticals (Ind AS 108) — standalone-only filing, no subsidiary/associate/JV
W1
Whether core operating margin recovers from Q1's ~26.8% (ex-exceptional) toward Q4 FY26's ~36% level or stays compressed
W2
Effective tax rate normalization — Q1 print at 25.5% of reported PBT vs 25.5% YoY-ago quarter, watch if core tax burden stays elevated once exceptional items roll off
W3
Impact of the senior management changes announced June 25, 2026 on operational continuity into Q2 FY27
Standalone-only (no subsidiary/associate/JV per note 3). PBT/PAT include a ₹31.80 Cr exceptional gain on sale of Worli office premises (sold ₹33.34 Cr vs carrying value ₹1.54 Cr, note 7); pre-exceptional PBT was ₹97.32 Cr. EPS ₹57.92 (after exceptional) vs ₹38.77 (before). Figures converted from ₹ lakhs (÷100). Unaudited, limited-review, unmodified auditor conclusion.