Astrazeneca Phar Q2 FY27 Results (NSE: ASTRAZEN)
Signal: Steady quarter
The read
The trajectory remains high-growth but with weaker earnings conversion: Q2 revenue grew 30.4% YoY to ₹7,291.0 million, while gross margin contracted 530bps to 35.0% and PAT growth slowed to 15.0%; H1 PAT was down 9.0% despite H1 revenue growth of 30.1%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹729.1 Cr | +30.4% | +6.8% |
| Net profit | ₹62.33 Cr | +15.0% | |
| EPS | ₹24.93 | +14.9% |
P&L walk
Standalone revenue increased 30.4% YoY to ₹7,291.0 million, but gross margin compressed 530bps to 35.0% and exceptional costs of ₹149.6 million limited PAT growth to 15.0%.
Key positives
- Revenue grew 30.4% YoY to ₹7,291.0 million and 6.8% QoQ, sustaining the 30.1% H1 revenue growth rate.
- Employee costs rose only 12.2% YoY to ₹678.5 million, while selling, marketing and distribution expense fell 36.8% YoY to ₹177.0 million.
- Operating cash flow was ₹2,323.8 million in H1FY27 versus an outflow of ₹657.3 million in H1FY26, and cash increased to ₹5,738.1 million.
- EPS growth of 14.9% closely tracked PAT growth of 15.0%, with no evidence of equity dilution.
Key concerns
- Gross margin compressed 530bps YoY to 35.0% and 700bps QoQ; the filing does not disclose whether this reflected mix, pricing or cost pressure.
- PAT grew only 15.0% YoY to ₹623.3 million despite 30.4% revenue growth, showing weaker profit conversion.
- H1 PAT declined 9.0% YoY to ₹1,001.6 million despite H1 revenue growth of 30.1%, indicating that the quarterly improvement has not yet reversed the first-half earnings pressure.
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