Glaxosmi. Pharma Q2 FY27 Results (NSE: GLAXO)
Signal: Growth reaccelerated
The read
Q2FY27 marked an earnings acceleration: consolidated revenue growth improved to +20.8% YoY from +16.5% in Q1FY27 and PAT growth to +30.5% from +15.7%, but the 62.4% gross margin was down 127bps YoY and PAT received support from ₹4209 lakh of income-tax refund interest.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹1,183.57 Cr | +20.8% | +26.1% |
| Net profit | ₹335.88 Cr | +30.5% | |
| EPS | ₹19.83 | +30.5% | |
| EBIT margin | N/A |
P&L walk
Revenue accelerated to ₹118357 lakh, +20.8% YoY and +26.1% QoQ, while gross margin fell to 62.4% from 63.7% as product costs grew faster than revenue; PAT nevertheless rose 30.5% to ₹33588 lakh, helped by higher other income and lower depreciation.
Segments
The group is effectively driven by the Pharmaceuticals segment; the subsidiary contributed only ₹128 lakh of quarterly PAT on ₹1384 lakh of revenue, leaving consolidated PAT of ₹33588 lakh only ₹126 lakh above standalone PAT.
Key positives
- Consolidated revenue reached ₹118357 lakh, +20.8% YoY versus +16.5% in Q1FY27, showing sequential growth acceleration.
- PAT rose 30.5% YoY to ₹33588 lakh, outpacing revenue, while EPS increased 30.5% to ₹19.83 with no share-count dilution.
- Six-month operating cash flow increased to ₹31144 lakh from ₹18374 lakh, a 69.5% YoY improvement.
- Employee plus other expenses grew approximately 8.7% YoY in aggregate versus 20.8% revenue growth, supporting profit conversion despite gross-margin pressure.
Key concerns
- Gross margin fell 127bps YoY to 62.4% as materials, purchases and inventory changes rose to 37.6% of revenue from 36.3%, with the filing not disclosing the volume, pricing or mix cause.
- Revenue grew 20.8% YoY, but other income rose 116.8% to ₹7278 lakh; ₹4209 lakh of this was interest on an income-tax refund, making part of the PAT uplift non-operating.
- Inventory increased to ₹55439 lakh from ₹45755 lakh and trade receivables to ₹33941 lakh from ₹27311 lakh by 30 September 2026.
Research and educational content only. Not investment advice.