Emcure Pharma Q2 FY27 Results (NSE: EMCURE)
Signal: Steady quarter
The read
The trajectory remains growth-positive: consolidated revenue accelerated to +24.3% YoY from +22.8% in Q1FY27 and PAT rose +29.3%, but the margin arc paused after three consecutive quarters of prior YoY expansion, with EBITDA margin at 20.8%, down 10bps YoY as gross margin compressed 130bps. The stronger standalone result, with EBITDA margin at 23.8% versus 20.8% consolidated, indicates that subsidiaries and consolidation effects are diluting the parent's operating performance.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹2,820.47 Cr | +24.3% | +9.3% |
| EBIT | ₹478.17 Cr | +28.9% | |
| Net profit | ₹325.07 Cr | +29.3% | |
| EPS | ₹17.16 | +33.5% | |
| EBIT margin | 20.8% |
P&L walk
Consolidated revenue rose 24.3% YoY to ₹28,204.71 million and PAT rose 29.3% to ₹3,250.68 million, but EBITDA margin was 20.8%, down 10bps YoY as gross margin contracted 130bps despite better sequential margin.
Segments
There is no reportable segment split because the group identifies only one reportable segment, Pharmaceuticals; the parent generated ₹16,679.84 million of revenue and ₹2,484.28 million of PAT versus consolidated revenue of ₹28,204.71 million and PAT of ₹3,250.68 million, showing material earnings contribution from subsidiaries.
Key positives
- Consolidated revenue reached ₹28,204.71 million, up 24.3% YoY and 9.3% QoQ, accelerating from 22.8% YoY in Q1FY27.
- Consolidated PAT rose 29.3% YoY to ₹3,250.68 million, while standalone PAT increased 111.2% to ₹2,484.28 million.
- Standalone EBITDA margin expanded to 23.8% from 17.8% a year ago as employee expenses grew 14.2%, materially below revenue growth of 32.3%.
- H1 operating cash flow improved to ₹6,822.39 million from ₹2,562.10 million despite investment and acquisition-related cash outflows.
Key concerns
- Consolidated EBITDA margin was 20.8%, down 10bps YoY, as gross margin fell 130bps to 59.5% and finance costs rose 9.3% YoY.
- Consolidated net debt increased to ₹13,307.06 million from ₹10,674.25 million at 31-Mar-26, alongside higher acquisition and capex spending.
- The parent outperformed the group, with standalone EBITDA margin at 23.8% versus 20.8% consolidated, indicating subsidiary-level dilution of consolidated profitability.
- Standalone other income of ₹335.38 million represented 10.1% of standalone pre-tax profit of ₹3,323.76 million, making the parent-level PAT comparison partly supported by non-operating income.
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