Concord Biotech Q2 FY27 Results (NSE: CONCORDBIO)
Signal: Margin pressure
The read
Q2FY27 marks a clear revenue recovery to ₹30,907.02 lakh, +25.1% YoY after the FY26 slowdown, and gross margin expanded 401bps to 76.2%; nevertheless, EBITDA margin fell 200bps YoY to 33.8% and PAT growth lagged at 10.3%, so the recovery still needs operating-margin confirmation.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹309.07 Cr | +25.1% | +20.0% |
| EBIT | ₹86 Cr | +14.7% | |
| Net profit | ₹69.57 Cr | +10.3% | |
| EPS | ₹6.65 | +10.3% | |
| EBIT margin | 33.8% |
P&L walk
Revenue increased to ₹30,907.02 lakh, +25.1% YoY and +20.0% QoQ, while gross margin expanded 401bps YoY to 76.2%; however, EBITDA margin was 33.8%, down 200bps YoY, and PAT growth of 10.3% was restrained by lower other income and a negative joint-venture contribution.
Segments
The group reports a single operating segment; the main consolidated drag was the joint venture, which shifted from a ₹229.14 lakh profit YoY to a ₹65.88 lakh loss, while one subsidiary reported a ₹432.63 lakh quarterly loss before consolidation adjustments.
Key positives
- Consolidated revenue reached ₹30,907.02 lakh, +25.1% YoY and +20.0% QoQ, reversing the FY26 revenue decline trend.
- Gross margin expanded 401bps YoY to 76.2% as raw material, trading and inventory-change costs declined to 23.8% of revenue from 27.8%.
- Employee costs rose 17.7% YoY to ₹5,231.43 lakh, slower than revenue growth of 25.1%, while CFO increased 11.3% YoY to ₹16,821.05 lakh.
- Finance costs fell 43.5% YoY to ₹3.34 lakh, supported by a net-cash balance sheet.
Key concerns
- EBITDA margin was 33.8%, down 200bps YoY despite a 401bps gross-margin expansion, indicating higher power and other operating-cost intensity.
- PAT growth of 10.3% lagged revenue growth because other income fell 23.8% YoY to ₹1,016.93 lakh and the joint venture contributed a ₹65.88 lakh loss.
- One subsidiary reported a quarterly loss of ₹432.63 lakh before consolidation adjustments, creating a material drag relative to its ₹65.65 lakh revenue.
Research and educational content only. Not investment advice.