Senores Pharma. Q1 FY27 Results (NSE: SENORES)
Signal: Margin expansion
The read
Q1 FY27 marks the fifth consecutive quarter of YoY margin expansion (OPM from 22% in Q4FY24 to 30% now), driven by structural mix shift to regulated markets (now 71% of revenue) and operating leverage on employee costs. EBITDA grew 87% on 36% revenue growth — a 51pp gap, confirming both operating leverage and input-cost tailwind. The raw material cost ratio fell to 26.1% from 32% a year ago. Revenue growth rate (36% YoY) is still strong but decelerated from the 54-72% range of the prior four quarters. The IPO proceeds utilization (only ₹400 Cr of ₹500 Cr deployed) and ₹100 Cr still in fixed deposits indicate ample liquidity for further inorganic moves (claim_id 1255 on strong revenue & profitability for FY27 remains on track). EPS lagged PAT growth slightly but no dilution yet.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹180.21 Cr | 35.9% | 2.9% |
| EBIT | ₹39.46 Cr | 48.9% | |
| Net profit | ₹30.96 Cr | 56.1% | |
| EPS | ₹6.61 | 43.7% | |
| EBIT margin | 29.96% |
P&L walk
Revenue grew 36% YoY to ₹180.21 Cr, driven by 42% growth in regulated markets (now 71% of sales). Gross margin expanded ~590bps YoY as raw-material cost % of revenue fell from 32.0% to 26.1%. Employee costs grew only 11% YoY (vs revenue +36%), delivering strong operating leverage. EBITDA surged 87% to ~₹54 Cr, with margin expanding ~800bps to 30.0%. Depreciation rose 8% YoY (to ₹9.9 Cr), broadly in line with fixed-asset base. Finance cost grew 7% YoY to ₹4.0 Cr. Other income jumped 138% YoY to ₹2.81 Cr (unusual quarter vs prior ₹1.18 Cr avg), contributing ~9% of PAT. PAT grew 56% YoY to ₹30.96 Cr. EPS at ₹6.61, +44% YoY.
Segments
Group reports single pharma segment; the revenue break internally shows regulated markets (71% of sales, +42% YoY) is the momentum engine, while branded generics (-2.4%) are flat.
Key positives
- Q1 FY27 revenue ₹180.21 Cr, +35.9% YoY — fifth consecutive quarter of 30%+ growth.
- EBITDA margin at 30.0%, +800bps YoY — fifth consecutive YoY margin expansion.
- Regulated markets revenue ₹127.8 Cr, +41.9% YoY; now 71% of total vs 68% last year — favourable mix shift.
- Raw material cost ratio fell 590bps YoY to 26.1% — sustained input-cost tailwind.
- Employee cost grew only +11% YoY vs revenue +36% — operating leverage embedded in cost structure.
- PAT ₹30.96 Cr, +56% YoY; EPS ₹6.61, +44% YoY.
- IPO proceeds utilization: ₹400 Cr deployed; ₹100 Cr idle in FDs for future capex/acquisitions.
Key concerns
- QoQ revenue growth only +2.9% — sequential momentum slowed after four quarters of 30%+ QoQ.
- Other income was ₹2.81 Cr vs ₹17.67 Cr in Q4FY26 (audited quarter with IPO-related income) — core operating profit is the true driver.
- Standalone entity remains a small part of the group (15% of revenue); consolidated earnings depend on subsidiary execution.
- Branded generics flat at -2.4% YoY — small drag but indicates need for new product launches in that segment.
Research and educational content only. Not investment advice.