Shree Ganesh Rem Q2 FY27 Results (NSE: SGRL)
Signal: Revenue declined
The read
The inflection is sequential rather than annual: revenue rose 62% QoQ to ₹23.29 Cr and PAT 46% QoQ to ₹1.63 Cr as domestic pharma-intermediate sales partly offset softer exports, but EBITDA margin fell another 644bps QoQ to 16.9% and has contracted for the third consecutive quarter YoY. Recovery depends on European demand returning, raw-material costs easing and the CRAMS pipeline reaching commercial supply from Q1FY28.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹23.29 Cr | -23% | +62% |
| Net profit | ₹1.63 Cr | -67% | |
| EPS | ₹1.28 | -67% | |
| EBIT margin | 16.9% |
P&L walk
Revenue recovered 62% QoQ to ₹23.29 Cr but remained 23% below Q2FY26; EBITDA fell 59% YoY to ₹3.94 Cr as lower volumes and volatile raw-material prices compressed margin to 16.9%, while PAT declined 67% to ₹1.63 Cr.
Key positives
- Revenue recovered 62% QoQ to ₹23.29 Cr, while PAT rose 46% QoQ to ₹1.63 Cr, indicating an early recovery from the weak Q1FY27 base.
- Domestic sales of ₹11.28 Cr nearly matched exports of ₹11.71 Cr, reflecting the stated shift toward domestic pharma-intermediate demand while European demand remained subdued.
- Two new pharmaceutical intermediates entered commercial production during the quarter, with encouraging domestic-market response and planned export-market expansion.
- The CRAMS pipeline advanced: pilot trials for a South-East Asian specialty-chemicals project were completed, with commercial supplies expected from Q1FY28.
Key concerns
- Revenue remained 23% below Q2FY26 at ₹23.29 Cr, and EBITDA fell 59% YoY to ₹3.94 Cr, showing that the sequential recovery has not yet restored the prior-year operating base.
- EBITDA margin compressed 1,483bps YoY to 16.9% and 644bps QoQ, with management attributing pressure to volumes below earlier levels and significantly higher, volatile raw-material prices.
- H1FY27 revenue declined 32% YoY to ₹37.65 Cr and EBITDA margin fell 1,141bps to 19.4%, indicating that the Q2 recovery has not yet reversed the first-half downturn.
- European demand remains a key swing factor: management described it as subdued in Q1FY27 and only reported improved traction in Q2, without quantifying the recovery.
Research and educational content only. Not investment advice.