Bajaj Healthcare Q2 FY27 Earnings Call — Analysis (NSE: BAJAJHCARE)

Bajaj Healthcare reported 18.9% YoY revenue growth to ₹175.9 Cr and 26.9% PAT growth in Q2FY27, driven by an 82% surge in formulations, while outlining a roadmap to reach ₹900–1,000 Cr revenue by FY29.

27 Oct 2026 · Analysis by Alpha Inflection

Result quality: stable — Steady quarter. Management sentiment: optimistic.

The take

Q2FY27 Revenue from Operations ₹175.9 Cr ( +18.9% YoY ) . Guidance raised — FY30 peptide facility revenue ramp ₹70-100 Cr in Year 1, ~₹300 Cr cumulative by Year 2 . But missed — West Asia geopolitical disruption and inventory… . New story: Product mix shift to high-value APIs .

Results

Revenue grew 18.9% YoY to ₹175.9 Cr, EBITDA rose 12.2% YoY to ₹32.1 Cr (18.2% margin), and PAT grew 26.9% YoY to ₹14.1 Cr.

Financial highlights

Guidance

Management reiterated FY27 revenue growth of 10–15%+ with 18–20% EBITDA margin, targeting ₹900–1,000 Cr revenue with 18–21% EBITDA margin by FY29.

What management committed to

• [Bajaj Healthcare's GenRx facility at Nashik] will generate revenue of INR200-250 Cr in 2-3 years after starting operations in Q1 FY28. — ₹200-250 Cr, 2-3 years after Q1 FY28
• [Bajaj Healthcare's oncology API dedicated facility] will generate revenue of around INR200 Cr in 2-3 years after commencing operations in Q2 FY28. — around ₹200 Cr, 2-3 years after Q2 FY28
• [Bajaj Healthcare's peptide facility] will generate revenue of INR70-100 Cr in its first full year (FY28-29) and cumulatively reach approximately INR300 Cr by the following year. — ₹70-100 Cr in Year 1, ~₹300 Cr cumulative by Year 2, FY30
• [Bajaj Healthcare's] FY27 annual capex will be INR65-80 Cr. — INR65-80 Cr, FY27
• [Bajaj Healthcare's] sustained annual capex will be INR50-60 Cr per year to support the INR1,000 Cr revenue target. — ₹50-60 Cr, ongoing
• [Bajaj Healthcare's] R&D spending will be approximately 2.5% to 3% of revenue. — 2.5% to 3%, ongoing
• [Bajaj Healthcare's] operating cash flow for FY27 will be more than INR30 Cr. — > INR30 Cr, FY27
• [Bajaj Healthcare's] formulation business will constitute 45-50% of revenue and API business 50-55% in 3-4 years. — 45-50% formulations, 50-55% API, 3-4 years
• [GenRx facility] will commence commercial production in Q1 FY28. — Q1 FY28, FY28

Key themes

Formulations ramp and specialty capex commercialisation

How the narrative shifted

• Product mix shift to high-value APIs: The strategic mix shift is now quantitatively validated by H1 FY27 reported revenue composition, moving from strategic intent to demonstrated outcome.
• Capex cycle for future growth: The capex ambition was explicitly raised from the prior guidance, reinforcing confidence in the future growth path.
• Regulatory milestones unlocking revenue: Cenobamate moved from regulatory milestone to actual market launch with repeat orders, demonstrating monetisation of first-mover status.
• Domestic API volume-led growth: The narrative around domestic API has shifted from a growth driver to a stable baseline, with explicit acknowledgement of structural price pressure.
• Export mix expansion ambition: The export share target was effectively met, and the ambition is now framed around sustaining and extending this share through deeper market registrations.
• Balance sheet strengthening and working capital discipline: The previously bullish working capital discipline target was missed, but management frames the inventory increase as a proactive strategic buffer, not a control failure.
• Nutraceutical licensing as new growth avenue: Consistent messaging; the nutraceutical contribution is now a stable line item rather than a future avenue.
• Backward integration to reduce import dependency: The thread moved from vague benefit to a specific, quantified roadmap, particularly linked to the oncology forward/backward integration strategy.
• West Asia geopolitical disruption and inventory buffer: This is a new macro thread directly explaining the miss on the receivable days guidance and the maintained inventory buffer, turning a financial control issue into a strategic supply-chain resilience story.
• CDMO and B2B partnership model for formulations: This thread formalises a business model shift that was only implicit in the prior call, now explicitly framed as the path to 45-50% formulation share without retail brand-building overhead.

Operational commentary

• Commercial launch of Cenobamate API and tablets (anti-seizure drug) in September across 6 strengths via 8 marketing partners as first company in India with DCGI approval; repeat orders received.
• Received NCLT approval for the acquisition of Genrx Pharmaceuticals Private Limited to expand formulation capacity.
• Constructing a 250 kg/annum commercial peptide manufacturing facility supported by solid-phase synthesis and fermentation, scheduled for completion by March 31, 2027; 6 APIs already ready at pilot scale.
• Setting up a dedicated formulation facility at Nashik (solid oral dosage, oral oncology, nasal, nutraceuticals, ointments) targeted to become operational in Q1FY28.
• Oncology API plant construction progressing on schedule for commissioning in Q2FY28.
• Regulatory pipeline progress: 12 European CEPs filed (8 approved, 4 under review); 17 KDMF registrations in South Korea (2 added in Q2); 17 products identified for Brazil ANVISA CBPF; 3 products registered in Egypt Whitelist (10 more planned).
• Expanded R&D infrastructure with >80 scientists (scalable to 120 chemists) across 4 verticals: API, Peptides, Oncology, and Biotechnology; R&D spend maintained at 2.5–3.0% of revenue.
• Senior leadership strengthened with appointments of COO, Head of Global API, Head of Institutional Sales, Head of R&D, Head of ROW Generic Formulations, and Head of Oncology.

Analyst Q&A

• Q. What is the expected revenue potential and operational timeline from the newly acquired Genrx formulation plant and the oncology API facility?

  Genrx facility is expected to generate ₹200–250 Cr in 2–3 years post-commissioning in Q1FY28, while the oncology API plant (commissioning Q2FY28) will generate ~₹200 Cr within 2–3 years of operation.

• Q. Why has inventory increased on the working capital front, and what is the full-year operating cash flow outlook?

  Inventory was built up strategically due to supply chain risks from the West Asia/Gulf crisis to ensure uninterrupted production; operating cash flow is expected to exceed ₹30 Cr for FY27 while receivable days improved from 145 to 135 days.

• Q. Can management quantify Cenobamate revenue run-rate and expectations for FY27 and FY28?

  Management declined to give a specific revenue figure citing early launch stage (September launch), but noted repeat orders from all 8 partners show strong secondary market traction.

• Q. What is the expected long-term product mix and capex roadmap to reach ₹1,000 Cr revenue?

  Capex will be ₹65–80 Cr in FY27 and ₹50–60 Cr annually thereafter, shifting revenue mix to 45–50% formulations and 50–55% APIs in 3–4 years.

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