RPG LifeScience. Q1 FY27 Results (NSE: RPGLIFE)
Signal: Margin expansion
The read
Revenue grew 15.85% YoY to ₹19,569 Lakhs, the highest in recent quarters, driven by recovery from the fire incident and normalisation. EBITDA margin expanded to 22.12% (up 112bps YoY), reflecting operating leverage and cost control. PAT grew 17% YoY to ₹3,076 Lakhs, with no exceptional items. The company's core business appears to be on a strong footing, but elevated finance costs and lower other income are partial offsets. The API division transfer to a subsidiary is in progress.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹195.69 Cr | 15.85% | 10.63% |
| EBIT | ₹37.39 Cr | 23.28% | |
| Net profit | ₹30.76 Cr | 17.00% | |
| EPS | ₹18.6 | 16.98% | |
| EBIT margin | 22.12% |
P&L walk
Strong revenue recovery and margin expansion drove PAT growth; finance cost and other income drag partially offset.
Segments
The Group operates in a single pharmaceutical segment; the new subsidiary RPG Active Pharma contributed a small profit, as consolidated PAT is marginally higher than standalone.
Key positives
- Revenue grew 15.85% YoY to ₹19,569 Lakhs, highest in recent quarters.
- EBITDA margin expanded 112bps YoY to 22.12%, driven by revenue growth and cost efficiencies.
- PAT grew 17% YoY to ₹3,076 Lakhs, with no exceptional items (clean earnings).
- Gross margin improved YoY (65.17% vs 64.47%), indicating better product mix.
Key concerns
- Other income declined 10% YoY to ₹470 Lakhs, as prior year included business interruption compensation from insurance claim.
- Finance costs surged to ₹63 Lakhs from ₹13 Lakhs YoY, reflecting borrowings for new subsidiary.
- Gross margin declined 57bps QoQ from Q4's high of 65.74%, though still healthy.
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