RPG LifeScience. Q1 FY27 Results (NSE: RPGLIFE)
Signal: Growth decelerated
The read
Q1FY27 consolidated revenue grew 15.9% YoY to ₹195.69 Cr, PAT 17.0% to ₹30.76 Cr, EBITDA margin expanded 40bps YoY to 24.5%, marking the second consecutive quarter of YoY margin improvement. The quarter had no exceptional items, a clean comparison vs prior quarters that included fire insurance gains and labour code provisions. Earnings quality is clean; EPS tracked PAT exactly. The company continues to execute on the API division demerger to its wholly-owned subsidiary.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹195.69 Cr | 15.85% | 10.63% |
| EBIT | ₹42.09 Cr | 18.4% | |
| Net profit | ₹30.76 Cr | 17.0% | |
| EPS | ₹18.6 | 17.0% | |
| EBIT margin | 24.5% |
P&L walk
Revenue grew 15.9% YoY led by domestic formulations; gross margin stable at ~65%; employee cost grew slower (12.0% vs 15.9% revenue) providing modest operating leverage; finance cost surged 384% YoY on new borrowings; PAT grew in line with revenue at 17.0% with no exceptional items.
Key positives
- Revenue growth of 15.9% YoY, well above the 3-year CAGR of 11.8%.
- PAT growth of 17.0% YoY, in line with revenue.
- EBITDA margin expanded 40bps YoY to 24.5%, second straight quarter of YoY improvement.
- No exceptional items – clean earnings quality.
- EPS grew 17.0% YoY, no dilution.
Key concerns
- EBITDA margin contracted 170bps QoQ from 26.2% to 24.5%, driven by higher finance costs (+384% YoY) and employee costs.
- Finance cost jump suggests increased leverage; need to monitor debt levels in coming quarters.
- QoQ PAT growth only 2.9% despite 10.6% revenue growth due to margin compression.
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