Titan Biotech Q2 FY27 Results (BSE: 524717)
Signal: Margin expansion
The read
The trajectory remains constructive: revenue accelerated to ₹7646.25 lakh, +42.8% YoY, and EBITDA margin expanded 200bps YoY to 21.9%, extending the recent margin recovery, although margin fell 230bps sequentially and gross margin compressed 120bps as raw-material intensity increased.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹7,646.25 Cr | +42.8% | +29.2% |
| EBIT | ₹1,540.57 Cr | +62.8% | |
| Net profit | ₹1,254.78 Cr | +61.6% | |
| EPS | ₹3.03 | +61.2% | |
| EBIT margin | 21.9% |
P&L walk
Revenue rose to ₹7646.25 lakh, +42.8% YoY and +29.2% QoQ; EBITDA margin expanded to 21.9% from 19.9% as employee, other and depreciation costs grew slower than sales, while associate profit lifted PAT to ₹1254.78 lakh, +61.6%.
Segments
The company reports one business segment; the consolidated result is lifted by associate profit of ₹121.66 lakh, taking PAT to ₹1254.78 lakh versus standalone PAT of ₹1133.07 lakh.
Key positives
- Revenue reached ₹7646.25 lakh, +42.8% YoY and +29.2% QoQ, accelerating from the prior quarter's ₹5916.66 lakh.
- EBITDA grew approximately 56.8% YoY versus revenue growth of 42.8%, a +14.0 percentage-point gap, with employee expense up 30.9%, depreciation up 9.5% and finance cost up 16.1%.
- Operating margin expanded 200bps YoY to 21.9%, continuing the margin expansion recorded in the recent results series.
- H1 operating cash flow increased to ₹1288.43 lakh from ₹1105.69 lakh despite higher inventory and receivables.
Key concerns
- Gross margin declined 120bps YoY to 48.3% as raw-material cost increased to 51.7% of revenue from 50.5%; the filing does not disclose the driver.
- Sequential operating margin declined 230bps from approximately 24.2% in Q1FY27 to 21.9% in Q2FY27.
- Inventory increased to ₹6356.06 lakh from ₹5576.91 lakh and trade receivables to ₹2715.63 lakh from ₹2282.86 lakh, requiring monitoring as growth scales.
Research and educational content only. Not investment advice.