Advanced Enzyme Q2 FY27 Earnings Call — Analysis (NSE: ADVENZYMES)
Advanced Enzyme reported 16% YoY revenue growth to ₹214.5 Cr with EBITDA margins expanding to 34%, driven by strong momentum across Bio-Processing, Animal Healthcare, and SciTech.
Result quality: stable — Results context unavailable. Management sentiment: optimistic.
The take
Q2FY27 Revenue from Operations ₹214.5 Cr ( +16% YoY ) . New guidance — FY27 full year overall revenue growth rate double digits, mid-level of double digits or lower mid-level of double digit . New story: Operational efficiency driving margins .
Results
Revenue ₹214.5 Cr +16% YoY (+12% QoQ); EBITDA margin 34.0% (+100bps YoY, +600bps QoQ); PAT ₹51.2 Cr +14% YoY.
Financial highlights
| Metric | Value | Change | Basis |
|---|---|---|---|
| Revenue from Operations | ₹214.5 Cr | +16% | yoy · Q2FY27 |
| Revenue from Operations | ₹214.5 Cr | +12% | qoq · Q2FY27 |
| EBITDA | ₹72.1 Cr | +20% | yoy · Q2FY27 |
| EBITDA Margin | 34% | +100bps | yoy · Q2FY27 |
| Profit After Tax (PAT) | ₹51.2 Cr | +14% | yoy · Q2FY27 |
| H1FY27 Revenue | ₹406.2 Cr | +10% | yoy · H1FY27 |
| H1FY27 EBITDA | ₹125.0 Cr | +7% | yoy · H1FY27 |
| H1FY27 PAT | ₹89.7 Cr | +5% | yoy · H1FY27 |
| Cash and Cash Equivalents | ₹610 Cr | point_in_time · Q2FY27 · Oct-26 (post-buyback) |
Guidance
Full-year revenue growth guided at lower-to-mid double digits with sustainable EBITDA margins between 30% and 32%, alongside total planned FY27 capex of ₹123 Cr.
What management committed to
- We intend to grow by double digits, mid-level of double digits or lower mid-level of double digit. — double digits, mid-level of double digits or lower mid-level of double digit, FY27 full year
- We are going with 30% to 32% of EBITDA level for calculation purpose. — 30% to 32%, FY27 full year / ongoing
- We expect the [US] market to pick up as we move on towards the year-end. — pick up (no specific number given), H2 FY27
- INR7.5 crores of deferred sales is carried out for the next quarter as we will look at it. — INR7.5 crores (carried forward for recognition), Q3 FY27
- In the current 2 to 3 years, we are not counting on the revenue basis from [the B2C business / WELLFA]. — negligible, FY27-FY29
Key themes
Margin expansion and non-core segment acceleration
How the narrative shifted
- Operational efficiency driving margins: Explicitly claims internal actions fully removed external cost risk, moving from a defensive to an offensive margin narrative.
- US market recovery: Pivots sharply from a multi-quarter narrative of 'dullness' and 'uncertainty' to specific, actionable optimism based on recent market engagement.
- Specialty Manufacturing (SciTech) scale-up: Elevates SciTech from a nascent or one-off segment to a validated growth engine with structurally improving margins, driven by operational shifts (shift working, capacity utilisation).
- Revenue timing and deferment impact: Directly explains Q1 weakness and Q2 partial recovery through the INR10 crore deferment lens, explicitly framing ~INR7.5 crores as merely shifted, not lost.
- B2C / WELLFA long-term development: Tempering any prior implicit growth expectations by pushing meaningful revenue contribution to a 2-3 year horizon and framing current efforts entirely as foundational development.
Operational commentary
- Completed share buyback of 2.41 million equity shares at an average price of ₹289.09 per share via the open market route.
- SciTech (Specialized Manufacturing) scaled significantly with shift working, expanded customer base, and R&D traction, achieving H1 revenue of ₹43.4 Cr (+32% YoY) and EBITDA of ₹9.2 Cr (+144% YoY).
- Biocatalysis sub-segment within Human Healthcare scaled to ₹6.6 Cr in Q2FY27 from ₹4.5 Cr in Q1FY27.
- R&D spend for Q2FY27 was ₹9.0 Cr (4.3% of consolidated sales post intercompany eliminations; 6% gross).
- Separated the B2C brand WELLFA into a separate entity with a dedicated team, not building material revenue expectations from it for the next 2-3 years.
Analyst Q&A
Q. Analyst inquired about the sustainability of the ₹70 Cr+ EBITDA quarterly run rate.
Management declined to commit to a quarterly absolute EBITDA run rate, reiterating annual guidance of 30% to 32% EBITDA margins.
Q. Analyst asked for revenue contribution and performance metrics of the single largest product.
Management stated they do not disclose revenue bifurcations for individual top products on a quarterly basis.
Q. Analyst asked for the potential threat from Novonesis setting up a >₹6,000 Cr plant in Mumbai.
Management clarified that Novonesis' capacity is focused on bioethanol/alcohol for fuel blending, a segment Advanced Enzyme is not present in, so existing revenue is unaffected.
Q. Analyst asked regarding the reason for the sequential drop in employee expenses from ₹45 Cr to ₹40 Cr.
Management explained the drop was due to a ₹1 Cr reversal of excess increment provisions from Q1, lower ESOP amortization due to employee departures, and slightly lower US payroll headcount.
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