Ambalal Sarabhai Q2 FY27 Results (NSE: AMBALALSA)
Signal: Loss reversed
The read
The quarter shows a group-level revenue acceleration to ₹5,813.39 lakh, up 30.8% YoY, driven by a pharmaceutical turnaround, but the trajectory is uneven: consolidated operating result fell 58.3% QoQ to ₹235.92 lakh and PAT fell 83.0% QoQ to ₹67.49 lakh as Electronics profitability weakened and depreciation increased 31.2% YoY.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹58.13 Cr | +30.8% | +33.5% |
| EBIT | ₹2.36 Cr | +155.8% | |
| Net profit | ₹0.67 Cr | N/M; turned from a loss of ₹56.03 lakh | |
| EPS | ₹0.09 | N/M; turned positive from ₹(0.07) | |
| EBIT margin | 4.06% |
P&L walk
Revenue accelerated to ₹5,813.39 lakh, up 30.8% YoY and 33.5% QoQ, while segment operating result rose 155.8% YoY to ₹235.92 lakh; higher depreciation and finance costs plus weaker QoQ segment profitability limited PAT to ₹67.49 lakh.
Segments
Pharmaceuticals was the key operating inflection: revenue rose 34.1% YoY to ₹3,488.90 lakh and segment result turned positive at ₹108.11 lakh from a ₹121.14 lakh loss, while Electronics revenue rose 26.3% but its result fell 40.1% to ₹127.81 lakh.
Key positives
- Pharmaceuticals revenue increased 34.1% YoY to ₹3,488.90 lakh and segment result turned positive at ₹108.11 lakh from a ₹121.14 lakh loss.
- Consolidated operating result rose 155.8% YoY to ₹235.92 lakh, taking the operating margin proxy to 4.06% from 2.07%.
- Employee benefit expenses rose only 6.6% YoY to ₹870.85 lakh against 30.8% revenue growth, supporting the YoY operating recovery.
- Net debt declined ₹63.87 lakh from March 31, 2026 to ₹3,159.87 lakh at September 30, 2026.
Key concerns
- Electronics segment result declined 40.1% YoY to ₹127.81 lakh despite 26.3% revenue growth, indicating weaker profitability in the non-pharma division.
- Consolidated operating result fell 58.3% QoQ from ₹565.63 lakh to ₹235.92 lakh, and PAT fell 83.0% QoQ from ₹397.58 lakh to ₹67.49 lakh.
- Standalone operations remained loss-making at ₹3.03 lakh despite ₹163.83 lakh of other income, underscoring dependence on subsidiaries and investments.
- Depreciation increased 31.2% YoY to ₹138.51 lakh while H1 operating cash flow declined 27.3% YoY to ₹788.94 lakh.
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