Bajaj Healthcare Q1 FY27 Results (NSE: BAJAJHCARE)
Signal: Steady quarter
The read
Revenue growth accelerated to 11.3% YoY, gross margin expanded 218bps on lower raw material costs, and EBITDA margin improved 89bps; however, EPS growth lagged PAT at 8.8% due to dilution from warrant conversion, and employee costs rose faster than sales. The quarter had no exceptional items, a clean comparison to the prior quarter's write-off.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹165.63 Cr | 11.3% | 8.2% |
| EBIT | ₹22.55 Cr | 14.2% | |
| Net profit | ₹13.7 Cr | 15.8% | |
| EPS | ₹4.07 | 8.8% | |
| EBIT margin | 17.36% |
P&L walk
Revenue grew 11.3% YoY, gross margin expanded 218bps on lower raw material cost, and EBITDA margin improved 89bps; employee costs rose faster than revenue, finance costs ticked up, and PAT growth was diluted by warrant conversion.
Key positives
- Revenue grew 11.3% YoY to ₹16,563 Lakhs, reversing the recent decline trend.
- Gross margin expanded 218bps YoY to 48.03% on lower raw material cost (51.97% of sales vs 54.15%).
- Net profit from continuing operations rose 14.1% YoY to ₹1,389 Lakhs.
- No exceptional items in the quarter (vs ₹3,324 Lakhs reversal in Q4FY26).
Key concerns
- EPS growth of 8.8% lags PAT growth of 15.8% due to equity dilution from warrant conversion (6.6% increase in share count).
- Employee cost grew 21.7% YoY, outpacing revenue growth and pressuring margins.
- Discontinued operations continue to report losses (₹19.48 Lakhs in Q1FY27).
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