Today, Saturday 27 Tir 1405 (18 July 2026), at 11:37 and right in the middle of the trading session, Dr Abidi Pharmaceutical (Dabid) published its unaudited interim financial statements for the six months ended 31 Khordad 1405 (21 June 2026) on Codal, Iran's corporate-disclosure system. The company's fiscal year ends in Azar (late autumn), so this report marks exactly the halfway point of the current year. At first glance the figures are striking: revenue more than doubled and net profit was 3.3 times the same period last year. But this column's habit is to ask exactly where the jump came from, how many engines drive it, and which part still needs verification.
The tape's reaction was telling too: on a day when the Tehran Stock Exchange main index (TEDPIX) fell about 2.3% and the market was uniformly red, Dabid traded almost flat (down 0.05%) around 1,917 tomans as of 12:25. Holding its ground against a market like that is itself a relatively positive reaction to the report.
The headline numbers at a glance
| Item (billion tomans) | H1 1405 | H1 1404 (restated) | Change |
|---|
| Operating revenue | 13,241 | 6,071 | +118% |
| Gross profit | 8,252 | 3,633 | +127% |
| Operating profit | 6,651 | 2,587 | +157% |
| Financial costs | 1,275 | 588 | +117% |
| Net profit | 5,257 | 1,594 | 3.3x |
| EPS (rials, on current capital) | 939 | 285 | 3.3x |
Figures rounded to billion tomans; the comparative column is "restated" per the company, which we return to below.
Dissecting the jump: four engines, not one
Engine one, sales: operating revenue grew 118%, from about 6.1 to 13.2 thousand billion tomans. This is nominal growth in a high-inflation economy; how much is "price" and how much is the real "volume" of drug sales comes only from the price-and-quantity table in the management interpretive report attached to this disclosure.
Engine two, gross margin: cost of goods sold rose 105%, slower than revenue. As a result the gross margin climbed from 59.8% to 62.3%. For a company whose raw materials carry FX dependence, preserving and even improving this margin is a notable point.
Engine three, operating leverage: selling, general and administrative expenses rose only 62%, roughly half the pace of revenue. The upshot is that the operating margin jumped from 42.6% to 50.2%: of every 100 tomans of sales, 50 tomans is operating profit. That figure is unusually high for a pharmaceutical manufacturer, and its durability in the second half will be the company's main test.
Engine four, below the operating line: two quiet co-drivers also helped net profit. One is "other non-operating income" of about 958 billion tomans, near zero last year and about 15% of pretax profit this year; the other is the effective tax rate, which fell from about 21% to 17%.
For analytical fairness, if we strip the non-operating items from both periods entirely, pretax profit still rose about 2.7 times; that is, the backbone of this jump is operational, not accounting. On the other side, financial costs also more than doubled in step with revenue, reaching about 1,275 billion tomans; put simply, about one-fifth of this period's operating profit went to loan interest, and the size of the company's debt is something to track in the balance sheet.
Three question marks this note does not answer
One, the cash quality of profit: we deliberately did not cite the operating cash-flow figure in this note, and a serious reader should look at the ratio of operating cash flow to net profit and the growth in receivables in the cash-flow statement and the accompanying notes. This column's own experience (the Shatran case) has shown that a profit jump has a different character when it is not backed by cash. In the pharma industry, where the sales chain is tied to distributors and insurers, this check matters even more.
Two, price or volume? The share of the approved drug-price increase versus the share of real volume growth within that 118% becomes clear in the summary of the interpretive report; growth that is mainly price-driven is not equivalent to volume growth.
Three, the nature of that 958 billion tomans of non-operating income: is it bank-deposit interest, FX revaluation, or an asset disposal? Whichever it is, its repeatability for future periods differs, and the answer is in the accompanying notes. On the same line, the very fact that the comparative column was "restated" is a reminder that last year's figures were corrected once, and the reason must be read in the notes.
What is the market paying for this report?
At about 1,917 tomans and 56 billion shares, Dabid's market cap is around 107 thousand billion tomans. The current price is about 20.4 times this same six-month profit. A simple arithmetic exercise, not a forecast: if the second half merely repeats the first, the price-to-earnings ratio for the current fiscal year lands around 10. Whether that repeat happens depends on drug pricing, the FX path, the durability of the 50% margin and the interest expense, and all four can change in the second half.
Bottom line
On paper, Dabid's six-month report is one of the strongest interim reports of the season: revenue growth above 100%, a 50% operating margin, and a profit that multiplied even without non-operating items. But it carries three open files: the cash backing of profit, the mix of price and volume, and the nature of the non-operating income. Until these three emerge from the notes and the interpretive report, the 939-rial EPS should be read as "excellent, but still unaudited and in need of a cash-flow dissection."
Sahmino does not give buy or sell recommendations; this note is a tool for reading the company's official report more closely. Source of the figures: Dabid's Codal disclosure, 27 Tir 1405 (18 July 2026); price data: the trading board as of 12:25 today.
