Akums Drugs Q2 FY27 Results (NSE: AKUMS)
Signal: Margin expansion
The read
The key inflection is faster standalone revenue growth of 27.7% YoY, but earnings quality is mixed: EBIT rose 80.1% from a low base while gross margin compressed about 2,910bps as material costs rose to 62.2% of revenue, and 257.97 million of other income represented a material share of pre-tax profit.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹395.05 Cr | +27.7% | +0.7% |
| EBIT | ₹21.05 Cr | +80.1% | |
| Net profit | ₹32.64 Cr | +39.1% | |
| EPS | ₹2.13 | +39.2% | |
| EBIT margin | 8.8% |
P&L walk
The consolidated financial statement is not included in the supplied filing text; consolidated results cannot be quantified without fabrication.
Key positives
- Standalone revenue reached 3,950.47 million, up 27.7% YoY, accelerating from the 13.9% growth cited for Q1FY27 in the prior company context.
- Standalone EBIT increased 80.1% YoY to 210.54 million and operating margin expanded 497bps to 8.8% on the low year-ago base.
- H1 operating cash flow improved to 592.08 million from 108.38 million, exceeding reported H1 capex of 528.44 million.
- EPS rose 39.2% YoY to ₹2.13, broadly tracking the 39.1% PAT increase.
Key concerns
- Raw material cost rose to 62.2% of revenue from 33.1% YoY, compressing gross margin by approximately 2,910bps; the filing does not disclose the driver.
- Other income of 257.97 million was equivalent to 58.8% of standalone pre-tax profit of 438.48 million, making bottom-line growth less purely operating-driven.
- Finance costs increased 44.6% YoY to 30.03 million, faster than revenue growth.
- Sequential operating margin fell sharply from a derived 37.9% in Q1FY27 to 8.8%, largely because the prior quarter benefited from a 168.96 million inventory reduction.
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