Key Financial Figures

Q1 FY27 Consolidated Performance:

  • Revenue: ₹1,898 million (2% YoY growth from ₹1,859 million in Q1 FY26)
  • EBITDA: ₹510 million (10% YoY decline from ₹564 million in Q1 FY26)
  • EBITDA Margin: 27% (vs 30% in Q1 FY26 and 31% in Q4 FY26)
  • Profit Before Tax: ₹535 million (3% YoY decline from ₹549 million in Q1 FY26)
  • Profit After Tax: ₹386 million (5% YoY decline from ₹404 million in Q1 FY26)
  • PAT Margin: 20% (vs 22% in both Q1 FY26 and Q4 FY26)

Sequential Performance (Q1 FY27 vs Q4 FY26):

  • Revenue declined 7% from ₹2,034 million
  • EBITDA declined 19% from ₹632 million
  • PAT declined 15% from ₹453 million

Special Notes:

  • Quarterly revenue impacted by ₹100 million sales reversal due to revenue recognition principles (goods in transit not delivered to customer)
  • This reversal was incremental to normal quarterly reversals
  • Management confirmed this revenue has been recorded as of August 12, 2026

Segment-wise Revenue Performance

Human Healthcare:

  • Q1 FY27: ₹1,139 million (60% of total revenue)
  • 7% YoY decline from ₹1,221 million
  • 11% sequential decline from ₹1,281 million
  • Decline primarily attributed to lower sales in Pharma API business
  • India sales: ₹580 million (vs ₹699 million in Q4 FY26, ₹659 million in Q1 FY26)
  • International sales: ₹559 million (vs ₹582 million in Q4 FY26, ₹552 million in Q1 FY26)
  • B2C revenue in USA showed improvement

Animal Healthcare:

  • Q1 FY27: ₹252 million (13% of total revenue)
  • 3% YoY decline
  • 1% sequential growth

Bioprocessing:

  • Q1 FY27: ₹306 million (16% of total revenue)
  • 30% YoY growth
  • 5% sequential decline
  • Growth driven by food business

Specialized Manufacturing:

  • Q1 FY27: ₹200 million (11% of total revenue)
  • 41% YoY growth
  • 11% sequential growth

Subsidiary Performance

JC Biotech:

  • Q1 FY27: Revenue ₹195 million, EBITDA ₹26 million, PAT ₹10 million
  • Q1 FY26: Revenue ₹211 million, EBITDA ₹33 million, PAT ₹14 million

evoxx:

  • Q1 FY27: Revenue ₹74 million, EBITDA negative ₹13 million, PAT negative ₹18 million
  • Q1 FY26: Revenue ₹70 million, EBITDA ₹14 million, PAT ₹7 million

SciTech:

  • Q1 FY27: Revenue ₹201 million, EBITDA ₹31 million, PAT ₹13 million
  • Q1 FY26: Revenue ₹145 million, EBITDA ₹4 million, PAT negative ₹8 million

Operational Metrics

  • Top 10 Customers Contribution: 23% of revenue (vs 27% in Q1 FY26, 26% in Q4 FY26)
  • Top 10 Products Contribution: 45% of revenue (vs 45% in Q1 FY26, 49% in Q4 FY26)
  • B2C Segment Revenue: USD 1.14 million (vs USD 1.12 million in same period previous year)
  • R&D Expenditure: ₹90 million (4.75% of revenue vs 4.62% in Q1 FY26)
  • Consolidated R&D Spend: Approximately 5% of revenue
  • Working Capital: Inventory ₹190 crores, Receivables ₹131 crores, Payables ₹41 crores
  • Working Capital Cycle: 125-138 days

Corporate Actions

Share Buyback:

  • Board approved buyback of ₹697 million
  • Ceiling price: ₹500 per share
  • Method: Open market route
  • Expected to start around August 14, 2026

Acquisition:

  • Acquired remaining 4.28% stake in JC Biotech for ₹79.79 million
  • JC Biotech now 100% wholly-owned subsidiary

Management Commentary & Guidance

Business Environment:

  • Global economy experiencing significant disturbance due to geopolitical tensions and supply chain disruptions
  • Volatile operating environment affecting energy and raw material prices
  • Q1 performance described as "softer, more muted start" to fiscal year

Growth Outlook:

  • Management maintained confidence in delivering double-digit annual growth
  • Expect progressive momentum as year advances
  • Guidance: 8-10% growth expected in US business
  • Full-year growth guidance of 12-15% over next 3-5 years reiterated

Margin Outlook:

  • EBITDA margins expected to normalize to ~30% for full year
  • Cost optimization and operational efficiency improvements underway
  • Energy cost pressures expected to ease in subsequent quarters

Capacity Utilization & Capex:

  • Fermentation utilization at 70-75%
  • Capex plan of ₹123 crores approved (includes ₹20 crores maintenance, ₹50 crores R&D, balance for growth)
  • Most capex to be completed in FY27 with some stretching to Q2 FY27
  • Capacity expansion decisions expected next quarter

Strategic Initiatives:

  • Changing business model in US market towards branding products
  • Focus on making business "sticky" through product labeling
  • Working on 15-20 new molecules in pipeline
  • Expanding into new areas: protein solubilization, biocatalysis, animal feed, ruminant, food, detergent

Product Updates

  • Serratiopeptidase: Management declined to share specific numbers but indicated no meaningful impact from recent FDC ban news (~1% potential impact)
  • Biocatalysis: Revenue ₹45 million in Q1 FY27 (vs ₹44 million in Q4 FY26)
  • Patent Status: Alternansucrase (sugar management) granted US patent; protein-related patent granted; third patent under process
  • Novel Food Application: EFSA approval still under consideration (process may take 3-6 months or longer)

Geographic Challenges

  • US market facing challenges due to geopolitical situation, logistics issues, and hiring difficulties
  • Currency depreciation: Rupee depreciated 4% QoQ and 10% YoY against USD
  • Management considering operational improvements rather than alternative sourcing locations

Participants

Management:

  • Mr. Mukund Kabra – Whole Time Director
  • Mr. Beni Rauka – Group Chief Financial Officer
  • Mr. Ronak Saraf – Investor Relations Manager

Analysts:

  • Lakshmi Narayanan (Tunga Investments)
  • Abhishek Navalgund (Nirmal Bang Securities)
  • Zaki Nasser (Nasser Investments)
  • Umang Shah (Banyan Tree Advisors)
  • Ravi Purohit (Securities Investment Management)
  • Shreyans Gathani (SG Securities)
  • Abhishek Kamdar (Value Plus Advisors)
  • Suryansh Rajput (AIONOS)
  • Ketan Chheda (Individual Investor)
  • Rohit Ohri (Progressive Shares)
  • Nikhil Upadhyay (Securities Investment Management)