Advanced Enzyme Q1 FY27 Results (NSE: ADVENZYMES)
Signal: Margin pressure
The read
The quarter shows a revenue recovery to ₹2,033.67 million, +9.4% YoY after Q3FY26's +1.8% growth, but the margin trajectory remains uneven: EBITDA margin fell 405bps YoY to 26.2% after a 400bps expansion in Q2FY26 and a 400bps contraction in Q3FY26. The dominant issue is renewed gross-margin pressure, with raw materials at 27.5% of revenue versus 29.3% YoY, while PAT fell 4.6% because operating profit and other income both weakened.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹203.37 Cr | +9.4% | +7.2% |
| Net profit | ₹38.59 Cr | -4.6% | |
| EPS | ₹3.31 | -7.3% | |
| EBIT margin | 26.2% |
P&L walk
Consolidated revenue increased to ₹2,033.67 million, +9.4% YoY and +7.2% QoQ, but lower other income of ₹72.28 million and a 181bps gross-margin compression drove EBITDA margin down to 26.2% and PAT to ₹385.89 million, -4.6% YoY.
Key positives
- Revenue from operations reached ₹2,033.67 million, +9.4% YoY and +7.2% QoQ, accelerating from the +1.8% YoY growth reported in Q3FY26.
- Raw-material intensity improved sequentially to 27.5% of revenue from 28.0% in Q4FY26, although it remained 181bps above the year-ago level.
- The company approved a ₹697.00 million open-market buyback at a maximum price of ₹500 per share, representing up to 1.24% of existing paid-up equity share capital.
Key concerns
- EBITDA margin declined to 26.2%, down 405bps YoY and 80bps QoQ, reversing the Q2FY26 margin expansion.
- PAT fell to ₹385.89 million, -4.6% YoY and -14.7% QoQ, despite revenue growth, indicating weak earnings conversion.
- EPS declined 7.3% YoY to ₹3.31, lagging PAT growth because 49,350 equity shares were allotted to employees under the ESOP scheme during the quarter.
- Other income declined 18.3% YoY to ₹72.28 million, reducing support to reported profit.
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