Financial Performance Summary

Consolidated Performance

  • Q2 FY27 consolidated revenue: INR2,910 crores (up 14% YoY from INR2,557 crores in Q2 FY26)
  • Consolidated EBITDA margin: 22.97% (improved from 21.68% in Q2 FY26)

Stand-alone Performance

  • Domestic formulation business: INR1,157 crores (up 14% YoY from INR1,019 crores)
  • Export formulation business: INR653 crores (up 32% YoY from INR493 crores)
  • Stand-alone EBITDA margin: 26.6% (improved from 25.46% in Q2 FY26)

Business Segment Performance

Domestic Business:

  • MAT September 2026 rank: 16th (IQVIA)
  • Market share: 2.11% (improved from 2.09%)
  • Chronic segment growth: 20% (vs IPM growth of 17%)
  • Acute segment growth: 11% (in line with market)
  • Top 6 brands feature among top 300 industry brands

Export Business Breakdown:

  • Promotional branded business (ROW markets): INR172 crores (up 19% YoY from INR145 crores)
  • Generic market (excluding tender): INR364 crores (up 36% YoY from INR268 crores)
  • Institutional generic business: 45% growth for the quarter
  • API business: 6% growth for the quarter

Key Brand Performance

  • Zerodol SP: Rank improved to 8th from 11th in Q2 FY26
  • Zerodol umbrella brand: Crossed INR1,500 crores sales (IQVIA September 2026), becoming 4th largest brand in IPM
  • Pain segment growth: 16% in Q2 FY27 to INR628 crores (from INR543 crores)
  • Pain segment H1 FY27: INR1,216 crores (from INR1,065 crores, 14% growth)
  • Volume growth: 8-9% with price growth of 4-4.5%

Cost Environment

The company noted significant price increases on inputs, logistic costs, shipping costs, and fuel/energy costs during the quarter.

Guidance and Outlook

Management reiterated previous guidance:

  • Revenue growth: 14-16% for FY27 (revised up from 12-13%)
  • Consolidated EBITDA margin: 22-23% for FY27
  • Medium-term expectation: Annual EBITDA margin improvement of 1-1.25% on consolidated basis, 1.5% on stand-alone basis

Subsidiary Performance

Unichem:

  • Q2 FY27 EBITDA margin: 11.3%
  • Significant freight cost increase: INR30 crores additional expense
  • Other expenses increased by INR47 crores (to INR189 crores from INR142 crores)
  • Brazil business: Started delivering profit after losses in first two quarters
  • Expected margin range: 11-13% depending on cost normalization

Geographic Performance (Generic Business):

  • European business: 23% growth
  • Australia and New Zealand: 24% growth
  • U.S.: 31% growth
  • Canada: 45% growth
  • South Africa: 46% growth

U.S. Market Details:

  • Overall portfolio growth: 9% in dollar terms
  • Ipca portfolio: 74% growth in dollar terms, $5.8 million sales
  • Unichem portfolio: $38.5 million sales

Institutional Business Update

  • H1 FY27 performance: INR236 crores
  • Full-year guidance: Expected to exceed INR300 crores (possibly INR325-340 crores)
  • Q1 included INR25 crores shipment shifted from previous year due to shipping delays

Debt and Interest Cost

  • Long-term borrowings: INR155 crores (rupee term loan)
  • Expected year-end balance: INR70-75 crores
  • Company effectively debt-free with INR700 crores cash
  • Interest cost expected to decline in H2 FY27 from current INR12 crores quarterly run rate

Subsidiary Status

  • All subsidiaries profitable except Pisgah
  • Pisgah expected to improve by next financial year with good API order positions
  • U.K. subsidiary: Now profitable after $2.5 million loss in previous year