• Type of Event: Q2 FY27 Earnings Conference Call to discuss the Company's Unaudited Financial Results for the quarter and half year ended September 30, 2026.
  • Date and Time: The call was held on November 05, 2026, at 13:30 (IST).
  • Purpose: Discussion of quarterly results and business performance.
  • Management Participants: Mr. Prabhat Agrawal (Managing Director and Chief Executive Officer), Dr. Balakrishnan Kaushik (Group Chief Financial Officer), Ms. Akanksha Gupta (Head, Investor Relations).
  • Availability of Materials: The financial results and investor presentation were uploaded on the stock exchanges and the company's website. The audio recordings of the call were uploaded on the stock exchange on November 05, 2026.
  • UPSI Statement: The transcript contains forward-looking statements based on beliefs, opinions, and expectations of the company as of the date of the call, noting they are not guarantees of future performance and involve risks and uncertainties.

Financial Highlights Discussed:

  • Quarter Performance (Q2 FY27): Consolidated revenue grew 32.9% YoY to INR 2,087 crores. Like-for-like growth was 34.7%, comprising 18.2% organic growth and 14.7% inorganic growth from previous acquisitions. Gross margin expanded 126 bps YoY to 11.5%. EBITDA margin expanded 135 bps YoY to 5.3%, with EBITDA growing 78% YoY. Profit After Tax (PAT) was INR 61 crores, up 66% YoY, with a PAT margin of 2.9%. PAT attributable to owners was INR 46 crores, up 44% YoY. Net Working Capital (NWC) days were 64, impacted by a temporary delay in government receivables (INR 55 crore related to drought in Maharashtra); adjusted NWC would be 61 days. Return on Capital Employed (ROCE) was 22.0% and Return on Equity (ROE) was 22.4%.
  • Half-Year Performance (H1 FY27): Revenue grew 35% YoY to INR 4,028 crores. Gross profit was INR 461 crores (11.5% margin). EBITDA margin was 5.2%. NWC days improved to 66 from 68 in H1 last year. Operating Cash Flow (OCF) was negative INR 46.5 crores due to the delayed government payment; it would have been positive otherwise. ROCE was 21.8% and ROE was 21.3%.
  • Business Scale: Served over 92,200 retail customers and more than 2,900 hospital customers across ~500 districts in 20+ states/UTs. Distributed over 90,400 SKUs from 3,200+ manufacturers.
  • Guidance & Outlook: Management is confident in exceeding its stated FY27 guidance of ~23% revenue growth (ex-new acquisitions), ~5% EBITDA margin, and 50% EBITDA-to-OCF conversion. The strong H1 performance was ahead of internal expectations.
  • Strategic Focus: The MedTech business represents over 15% of revenue and is a key growth driver for portfolio expansion and improved margins. The company is evaluating new acquisition opportunities (targeting deals >INR 100 crore) for product or geographic expansion, potentially closable in FY27.
  • Key Clarifications: A one-off provision of ~INR 12 crores was taken in Q2 for a customer default at a subsidiary, impacting margins. Interest costs (INR 20-25 cr/quarter) are expected to reduce as debt repayment for a previous acquisition commences in Q3. The impact of potential hospital margin regulation (NPPA's trade margin cap on 137 molecules) is deemed immaterial (~2% of portfolio), with margins expected to remain stable.

Additional Notes Section

  • The document is the formal transcript of the earnings call, submitted as a regulatory filing to BSE and NSE.
  • The transcript was edited for factual errors, with the audio recording being the definitive version.
  • The call was hosted by DAM Capital Advisors Limited.
  • No new unpublished price sensitive information (UPSI) was indicated to be shared during the call.