Domestic Branded Formulations (DBF) Performance

  • Q2 FY27 Revenue: ₹809 crore, up 14.1% YoY (Q2 FY26: ₹708 crore)
  • H1 FY27 Revenue: ₹1,610 crore, up 14.2% YoY (H1 FY26: ₹1,410 crore)
  • Q2 EBITDA: ₹288 crore with 35.7% margin (Q2 FY26: ₹266 crore with 37.6% margin)
  • H1 EBITDA: ₹567 crore with 35.2% margin (H1 FY26: ₹527 crore with 37.4% margin)
  • Therapy Mix: Chronic 73%, Sub-chronic 13%, Acute 15%
  • Portfolio: 86% chronic and sub-chronic therapies; Top 10 brands contribute 44% of sales
  • Brand Distribution: 3 brands (₹200+ crore), 3 brands (₹100-200 crore), 11 brands (₹50-100 crore), 25 brands (₹20-50 crore)

Strategic Development - Zorvia Healthcare Licensing

  • Licensed injectables and part of acute portfolio to Zorvia Healthcare
  • Eris retains brand ownership and earns 7% royalty
  • Impacted sales: ~₹100 crore
  • Ex-Zorvia, Q2 DBF growth was 17%
  • Expected ~100 bps Gross Margin improvement going forward ex-Zorvia

DBF Financial Details

  • Gross Margin: Q2 FY27 75.7% vs Q2 FY26 76.1%; H1 FY27 75.0% vs H1 FY26 76.4%
  • Employee Cost: Q2 ₹137 crore (16.9% of revenue); H1 ₹284 crore (17.6% of revenue)
  • Other Expenses: Q2 ₹187 crore (23.1% of revenue); H1 ₹357 crore (22.2% of revenue)
  • Depreciation: Q2 ₹14 crore; H1 ₹28 crore
  • Amortization: Q2 ₹57 crore; H1 ₹113 crore
  • Finance Cost: Q2 ₹46 crore; H1 ₹91 crore
  • Exceptional Items: Receivables write-off of ~₹36 crore for at-risk products
  • Tax Impact: Positive ₹65 crore tax impact due to NCLT order for merger between subsidiaries Aprica, Eris Oaknet and ETL
  • PAT: Q2 ₹170 crore (21.1% margin); H1 ₹303 crore (18.8% margin)

Operational Metrics

  • DBF Debtor Days: 61 days in September 2027 vs 74 days in March 2026 (reduction of 13 days)

International Business (Swiss Parenterals)

  • Base business described as "intact, steady and protected"
  • EU CAPA actions underway with shutdown planned in Q3
  • CDMO pipeline opportunities intact with no cancellations
  • Top 10 countries contribute 50%+ of export revenues
  • New Unit III block construction on track with PV batches expected by April 2027
  • Planned lines: PFS, Vials, Lyophilized and Cartridges (including Dual Chamber)

Consolidated Financial Performance

  • Q2 Revenue: ₹892 crore, up 12.6% YoY (Q2 FY26: ₹792 crore)
  • H1 Revenue: ₹1,766 crore, up 12.8% YoY (H1 FY26: ₹1,565 crore)
  • Q2 EBITDA: ₹309 crore with 34.7% margin (Q2 FY26: ₹288 crore with 36.4% margin)
  • H1 EBITDA: ₹606 crore with 34.3% margin (H1 FY26: ₹565 crore with 36.1% margin)
  • Q2 PAT: ₹187 crore (21.0% margin); Adjusted PAT ₹158 crore (17.7% margin)
  • H1 PAT: ₹330 crore (18.7% margin); Adjusted PAT ₹301 crore (17.1% margin)
  • Effective Tax Rate: 20.4% for H1 FY27

Capital Structure and Cash Flow

  • H1 Operating Cash Flow: 105% of EBITDA
  • H1 Capex: ₹220 crore
  • Net Debt Reduction: ~₹111 crore in H1 FY27
  • ROCE: 19% for FY27 YTD vs 16% in FY26
  • Consolidated Debtor Days: 70 days in September 2027 vs 80 days in March 2026 (reduction of 10 days)

Share Capital and Ownership

  • Shares Outstanding: 13,87,38,569
  • Market Capitalization: ₹16,536 crore
  • Promoter Holding: 54.74% as of September 2026 (54.14% in June 2026, 53.92% in March 2026)
  • Top Institutional Investors: LILAC INVESTMENTS LIMITED (8.62%), HDFC MUTUAL FUND (8.19%), FRANKLIN TEMPLETON MUTUAL FUND (3.76%)

Forward-looking Statements

The presentation contains forward-looking statements subject to risks including general economic conditions, currency fluctuations, interest rate changes, government healthcare allocations, regulatory changes, competitive pressures, and political conditions.