Alembic Pharma Q2 FY27 Results (NSE: APLLTD)
Signal: Margin expansion
The read
Q2FY27 marks a sharp margin inflection: operating margin expanded to 22.21% from 17.02% YoY and 16.18% QoQ, lifting consolidated PAT 81.4% to ₹335.17 crore; the key monitor is whether the standalone-to-consolidated profit gap persists as subsidiary losses remain material.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,603.48 Cr | +36.3% | +21.1% |
| Net profit | ₹335.17 Cr | +81.4% | |
| EPS | ₹17.05 | +81.4% | |
| EBIT margin | 22.21% |
P&L walk
Consolidated revenue increased 36.3% YoY to ₹2,603.48 crore and operating margin expanded 519bps to 22.21%, driving PAT up 81.4% to ₹335.17 crore; finance cost rose 57.9% and subsidiaries remained a drag on group profit.
Segments
The company reports one pharmaceutical segment, but subsidiaries materially dragged the consolidated result: standalone PAT was ₹409.36 crore versus consolidated PAT of ₹335.17 crore, while the reviewed subsidiary reported a ₹21.05 crore quarterly loss and seven unreviewed subsidiaries reported aggregate losses of ₹13.84 crore.
Key positives
- Revenue reached ₹2,603.48 crore, up 36.3% YoY and 21.1% QoQ, accelerating from 25.7% YoY in Q1FY27.
- Operating margin expanded 519bps YoY to 22.21%; employee benefits rose 15.1% and other expenses rose 32.7%, both slower than revenue growth of 36.3%.
- Consolidated PAT increased 81.4% YoY to ₹335.17 crore and EPS rose 81.4% to ₹17.05 without a change in paid-up equity share capital.
- H1FY27 operating cash flow was ₹571.38 crore versus ₹402.92 crore a year earlier, while PPE rose to ₹2,914.11 crore and CWIP declined to ₹542.84 crore.
Key concerns
- Consolidated PAT of ₹335.17 crore was ₹74.19 crore below standalone PAT of ₹409.36 crore, indicating material drag from subsidiaries and group entities.
- Finance cost rose 57.9% YoY to ₹38.26 crore, faster than revenue growth of 36.3%, even though the debt-equity ratio improved to 0.25x from 0.27x.
- One reviewed subsidiary reported a ₹21.05 crore quarterly loss and seven unreviewed subsidiaries reported aggregate losses of ₹13.84 crore; the auditor relied on other auditors or management-certified information for these entities.
Research and educational content only. Not investment advice.