Bajaj Healthcare Q2 FY27 Results (NSE: BAJAJHCARE)
Signal: Steady quarter
The read
The key inflection is not operating margin expansion: revenue accelerated to 19.6% YoY from 11.3% in Q1FY27, but gross margin compressed 189bps to 48.35% as raw-material cost rose 506bps of revenue; PAT growth of 26.9% was partly helped by the discontinued-operations loss shrinking to 28.58 lakh.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹176.9 Cr | +19.6% | +6.2% |
| Net profit | ₹14.09 Cr | +26.9% | |
| EPS | ₹4.19 | +18.7% | |
| EBIT margin | 17.64% |
P&L walk
Revenue increased 19.6% YoY and 6.2% QoQ, but gross margin fell 189bps YoY as raw-material cost rose to 55.63% of revenue; EBITDA margin was broadly stable at 17.64%, while PAT growth to 1,409.40 lakh was aided by a sharply smaller discontinued-operations loss.
Key positives
- Revenue from operations reached 17,690.16 lakh, up 19.6% YoY and 6.2% QoQ, accelerating from the 11.3% YoY growth reported in Q1FY27.
- Continuing-operations PAT rose 37.6% YoY to 1,437.98 lakh, while the discontinued-operations loss narrowed 78.6% YoY to 28.58 lakh.
- Employee benefits rose 15.8% YoY and other expenses rose 10.8%, both below the 19.6% revenue growth; derived EBITDA rose 19.8% YoY to 3,120.92 lakh.
Key concerns
- Gross margin fell 189bps YoY to 48.35% as raw-material cost rose to 55.63% of revenue from 50.57%; the filing does not disclose a mitigation driver.
- Operating cash flow fell to 1,568.67 lakh from 5,018.54 lakh YoY as receivables absorbed 2,163.59 lakh and inventories absorbed 2,052.44 lakh.
- Net debt increased to 25,329.78 lakh from 19,547.61 lakh at 31 March 2026, while half-year capex cash outflow reached 6,096.25 lakh.
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