Alivus Life Q1 FY27 Results (NSE: ALIVUS)
Signal: Margin expansion
The read
Q1FY27 was a margin inflection quarter: gross margin expanded 521bps YoY on raw material cost relief and mix, while employee cost leverage added to the operating margin swing (EBITDA +249bps YoY). The PAT beat (+31.7% YoY) was amplified by other income tripling, but core operating profit still grew a healthy 30.2%. Sequential revenue decline (-7.1% QoQ) is typical seasonal softness. The key concern is whether 60%+ gross margins are sustainable given sequential compression from Q4 (65.2% to 60.2%). On balance, the company is executing well in a favourable input-cost environment and maintains an exceptionally clean balance sheet.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹640.41 Cr | 6.41% | -7.07% |
| EBIT | ₹212.22 Cr | 30.21% | |
| Net profit | ₹160.08 Cr | 31.71% | |
| EPS | ₹13.04 | 31.58% | |
| EBIT margin | 28.3% |
P&L walk
Revenue growth of 6.4% YoY was driven by volume/mix as gross margin expanded 521bps on lower cost of materials consumed (39.5% vs 44.7% of revenue). EBITDA margin jumped 249bps YoY to 28.3% on the gross margin tailwind plus operating leverage from employee costs growing only 10.8% vs revenue 6.4% (fixed/semi-fixed overheads controlled). Net profit grew substantially faster (+31.7% YoY) boosted by other income tripling to ₹224.01 Mn (treasury yields on cash). EPS tracking PAT with negligible dilution.
Segments
Single API segment — no internal segmentation; all revenue and profit reflect the API business.
Key positives
- Gross margin expanded 521bps YoY to 60.2% — cost of materials consumed fell to 39.5% of revenue from 44.7%, driven by input deflation and favourable mix.
- EBITDA margin improved 249bps YoY to 28.3%, benefiting from both gross margin tailwind and operating leverage (employee costs grew only 10.8% vs revenue 6.4%).
- Net profit ₹160.08 Cr, +31.7% YoY — accelerated from 14.65% YoY profit growth in FY26 (as per fundamentals block).
- Other income nearly tripled to ₹22.40 Cr, providing a buffer to core operations.
Key concerns
- Gross margin sequentially compressed from 65.2% (Q4FY26) to 60.2% (Q1FY27) — a 500bps QoQ drop, though Q4 typically benefits from year-end adjustments.
- Revenue declined 7.1% QoQ sequentially, although this appears seasonal (API demand often peaks in Q4).
- Depreciation grew 20.6% YoY, outpacing revenue growth, indicating rising capital intensity — needing monitoring for asset utilisation.
Research and educational content only. Not investment advice.