Financial Performance Summary

Quarterly Performance (Q2 FY27 vs Q2 FY26 vs Q1 FY27):

  • Revenue from Operations: Rs. 182.9 crore (up 14.3% YoY from Rs. 160.1 crore, up 10.5% QoQ from Rs. 165.6 crore)
  • Other Income: Rs. 0.1 crore (vs Rs. 0.2 crore in Q2 FY26, Rs. 0.4 crore in Q1 FY27)
  • EBITDA (including other income): Rs. 26.2 crore (up 0.9% YoY from Rs. 26.0 crore, up 57.9% QoQ from Rs. 16.6 crore)
  • EBITDA Margin: 14.3% (vs 16.2% in Q2 FY26, 10.0% in Q1 FY27) - decline of 190 bps YoY, improvement of 431 bps QoQ
  • PAT: Rs. 11.9 crore (down 21.7% YoY from Rs. 15.2 crore, up 266.4% QoQ from Rs. 3.2 crore)
  • PAT Margin: 6.5% (vs 9.5% in Q2 FY26, 2.0% in Q1 FY27) - decline of 299 bps YoY, improvement of 454 bps QoQ
  • EPS: Rs. 3.40 (vs Rs. 4.58 in Q2 FY26, Rs. 0.93 in Q1 FY27)

Half-Yearly Performance (H1 FY27 vs H1 FY26):

  • Revenue from Operations: Rs. 348.5 crore (up 7.8% from Rs. 323.2 crore)
  • Other Income: Rs. 0.5 crore (vs Rs. 0.6 crore)
  • EBITDA (including other income): Rs. 42.8 crore (down 15.7% from Rs. 50.8 crore)
  • EBITDA Margin: 12.3% (vs 15.7% in H1 FY26) - decline of 342 bps
  • PAT: Rs. 15.1 crore (down 47.2% from Rs. 28.7 crore)
  • PAT Margin: 4.3% (vs 8.9% in H1 FY26) - decline of 453 bps

Financial Metrics Analysis

Gross Profit Trends:

  • Gross profit stood at Rs. 99.1 crore in Q2 FY27 (vs Rs. 93.2 crore in Q2 FY26, Rs. 86.9 crore in Q1 FY27)
  • Gross margin improved to 54.2% from 52.5% in Q1 FY27, but remained below 58.2% recorded in Q2 FY26
  • Margin pressure due to elevated prices of solvents and crude oil-linked raw materials following West Asia crisis

Cost Structure:

  • Finance costs reduced to Rs. 6.3 crore (from Rs. 8.0 crore in Q1 FY27 and Rs. 7.1 crore in Q2 FY26)
  • Reduction due to refinancing of borrowings at lower interest rate effective 1st July 2026

Profitability:

  • Profit before tax: Rs. 15.7 crore (up 3.7% YoY from Rs. 15.2 crore, up significantly from Rs. 4.6 crore in Q1 FY27)
  • YoY PAT decline attributed to provision for deferred tax liabilities created beginning FY27

Cash Flow:

  • Net cash generated from operating activities: Rs. 37.5 crore in H1 FY27 (vs net cash used of Rs. 5.7 crore in H1 FY26)

Consolidated Performance

  • Company presented consolidated financial results following incorporation of Wanbury Skin Health Limited (82% subsidiary)
  • Consolidated Q2 FY27 Revenue from Operations: Rs. 182.9 crore
  • Consolidated EBITDA: Rs. 22.9 crore
  • Consolidated PAT: Rs. 8.5 crore
  • Subsidiary absorbed loss of Rs. 3.4 crore on expenses incurred ahead of commercial launch in October 2026

Business and Operational Highlights

Regulatory Approvals and Market Access:

  • Received nine "No DMF Deficiency" letters from USFDA for Metformin HCl Drug Master File (July-August 2026)
  • Received "No DMF Deficiency" letters for Paroxetine HCl and Diphenhydramine HCl
  • Received Certificate of Suitability (CEP) from EDQM for Rivaroxaban API
  • Received GMP Compliance Certificate from Australia's TGA for Tanuku, Andhra Pradesh manufacturing site (valid until 9th December 2028)
  • TGA certificate covers six APIs: Metformin HCl, Tramadol HCl, Sertraline HCl, Diphenhydramine HCl, Mefenamic Acid, Paroxetine HCl Hemihydrate

Product Pipeline and Expansion:

  • Resuming dispatches of Ketamine HCl API in current quarter (November 2026)
  • Expanding API portfolio with validation of new products: Quetiapine Fumarate, Sitagliptin, Empagliflozin
  • Regulatory filings planned in coming quarters, with interim availability in semi-regulated markets
  • New manufacturing block at Andhra Pradesh site under validation for new APIs
  • Expect new product launches towards end of current financial year

Commercial Developments:

  • Commercialized new Metformin DC business in Saudi Arabia with annual revenue potential of ~Rs. 10 crore
  • Customer in Mexico won two-year tender for Metformin supply valued at ~Rs. 15 crore per annum

Subsidiary Launch:

  • Wanbury Skin Health Limited launched berrysoft™ baby product range in October 2026 across multiple Indian states
  • Product range includes: Gentle Bathing Bar, Gentle Body Wash, Foam Shampoo, Syndet Handwash
  • Pipeline products: Moisturising Lotion, Diaper Rash Cream, Moisturising Cream
  • Received GST registration in five states and CFA drug licences in Mumbai, Jaipur, Patna, Ambala

Awards and Recognition:

  • Patalganga facility received "Certificate of Excellence" from National Safety Council for safety performance (third consecutive year)
  • Tanuku facility received "Best Employer Award" from Government of Andhra Pradesh

Management Commentary

Mr. Mohan Rayana, Director of Wanbury Limited, commented:

  • Q2 FY27 marks recovery from disruption caused by West Asia crisis in previous quarter
  • Substantial part of input cost increase passed to customers during quarter, balance to be passed on in coming quarter
  • Margins and profitability still affected by higher input costs year-on-year, expected to recover fully as pass-through completes
  • Finance cost reduction benefit from refinancing will continue in coming quarters
  • Expect better performance on both topline and profitability in second half of FY27
  • Driven by complete recovery of margins within existing portfolio and commercialization of newer products

Company Background

  • Established in 1988, listed on NSE (WANBURY) and BSE (524212)
  • Presence in global API market and domestic branded formulations
  • APIs exported to over 50 countries
  • USFDA and EUGMP approved facilities at Tanuku (Andhra Pradesh) and Patalganga (Maharashtra)
  • API portfolio includes: antidiabetic, antidepressant, pain management, antihistamine, anti-inflammatory products
  • Formulations presence across therapeutic categories: cough and cold solutions, gynaecology, orthopaedics, nutraceuticals, gastrointestinal, anti-inflammatory, analgesics