Key Quantitative Figures

Financial Performance Q2 FY27 (Consolidated):

  • Revenue from operations: ₹181.22 crore (Q2 FY26: ₹111.05 crore), up 63% YoY
  • EBITDA margin: 27.5% (Q2 FY26: 23.4%)
  • PAT: ₹50 crore (Q2 FY26: ₹25 crore), doubled YoY
  • PAT margin: 16% (Q2 FY26: 13%)
  • Basic EPS: ₹27.93 (Q2 FY26: ₹13.60)

H1 FY27 Performance (Consolidated):

  • Revenue: ₹343.57 crore (H1 FY26: ₹222.53 crore)
  • PAT: ₹54.65 crore (H1 FY26: ₹26.04 crore)
  • Basic EPS: ₹52.63 (H1 FY26: ₹25.09)

Standalone Financial Position as of September 30, 2026:

  • Total Assets: ₹701.27 crore (March 31, 2026: ₹595.66 crore)
  • Share Capital: ₹10.38 crore
  • Other Equity: ₹377.60 crore
  • Total Borrowings: ₹14,624.24 crore (Non-current: ₹382.33 crore, Current: ₹10,800.99 crore)
  • Trade Receivables: ₹33,620.16 lakhs
  • Inventories: ₹7,368.19 lakhs

Dates of Action

  • Board Meeting Date: November 12, 2026 (commenced at 10:30 AM, concluded at 12:35 PM)
  • Auditor Resignation Effective: November 12, 2026
  • New Auditor Appointment: November 12, 2026
  • Financial Period: Quarter and half year ended September 30, 2026

Parties Involved

  • Resigning Auditor: M/s. Vijay Mehra & Co., Chartered Accountants (Firm Registration No. 001051N)
  • New Auditor: M/s. B S R & Co. LLP, Chartered Accountants (Firm Registration No. 101248W/W-100022)
  • Subsidiary: Kwality Pharmaceuticals Africa Limitada (51% ownership)
  • Regulators: SEBI, European regulatory authorities (Hungary)

Strategic and Operational Updates

Guidance Revision: Management raised FY27 revenue guidance to ₹720+ crore from earlier guidance of ₹700 crore.

Expansion Projects:

  • Acquired 4 acres of land adjacent to existing Amritsar campus for Unit 7 development
  • Unit 7 envisaged as fully automated manufacturing complex with 4+ injectable lines and 6+ oral solid dosage lines
  • Oncology manufacturing expansion scheduled for completion by June 2027
  • Hormone manufacturing facility construction completed, manufacturing licence audit initiated

Regulatory Approvals:

  • Received EU-GMP certification from Hungary for Cephalosporin and Oncology manufacturing facilities
  • Undertook audits for ISO 13485 and CE MDR certification for ophthalmic manufacturing

Product Development:

  • 40-molecule Bioequivalence programme for global filings
  • 19 products completed BE studies, ready for regulatory filings
  • Launched five new products from ophthalmic eye-drop manufacturing lines

Working Capital Efficiency:

  • Debtor days reduced to 178 days in H1FY27 from 203 days in FY26
  • Inventory days improved to 77 days from 111 days
  • Payable days at 126 days compared to 144 days in FY26
  • Cash conversion cycle improved to 130 days from 170 days in FY26 and 297 days in FY23

Corporate Governance Changes

Auditor Resignation: M/s. Vijay Mehra & Co. resigned due to "pre-occupation in other assignments." The resignation letter confirmed no concerns raised about company management and no material reasons other than stated.

New Auditor Appointment: B S R & Co. LLP appointed based on Audit Committee recommendation to fill casual vacancy. Appointment is subject to member approval at a General Meeting to be convened within three months. The new auditors will hold office until the conclusion of the next Annual General Meeting.

Financial Impact

All financial impacts are quantified in the disclosure. The auditor change is not expected to have material financial impact as the resignation was due to pre-occupation reasons without any concerns about financial reporting.

Capital Structure Impact

No change in share capital reported. Paid-up equity share capital remains at ₹10.38 crore with face value per share not specified.

Cash Flow Implications

H1 FY27 Standalone Cash Flows:

  • Net cash from operating activities: ₹27.58 crore
  • Net cash used in investing activities: ₹36.60 crore
  • Net cash from financing activities: ₹10.13 crore
  • Net increase in cash equivalents: ₹1.11 crore

Forward-looking Statements

Management commentary indicates continued focus on building a scalable and globally competitive pharmaceutical business through:

  • Expanding regulatory footprint
  • Growing global product pipeline
  • Strategic investments in manufacturing infrastructure
  • Strengthening corporate governance framework