Shilpa Medicare Q1 FY27 Results (NSE: SHILPAMED)
Signal: Margin expansion
The read
The earnings trajectory remains constructive: consolidated revenue growth accelerated to +44.9% YoY and EBITDA margin reached 29.9%, the fourth consecutive quarter of YoY margin expansion, while PAT of ₹10,088 lakh was operating-led; the key watchpoint is 420bps YoY gross-margin compression despite lower raw-material intensity, which the filing does not explain.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹465.78 Cr | +44.9% | +6.6% |
| EBIT | ₹104.19 Cr | N/A | |
| Net profit | ₹100.88 Cr | +115.2% | |
| EPS | ₹5.16 | +115.0% | |
| EBIT margin | 29.9% |
P&L walk
Consolidated revenue increased to ₹46,578 lakh, +44.9% YoY and +6.6% QoQ, with EBITDA margin expanding to 29.9%; PAT nevertheless declined 6.4% QoQ to ₹10,088 lakh after the ₹10,778 lakh Q4FY26 base, while raw-material intensity fell to 31.0% of revenue from 35.8% but gross margin remained 420bps below the year-ago level.
Segments
No segment table is disclosed because management reviews the business as one Pharmaceuticals operating segment; consolidated PAT of ₹10,088 lakh exceeded standalone PAT of ₹6,492 lakh by ₹3,596 lakh, confirming a material subsidiary contribution.
Key positives
- Consolidated revenue reached ₹46,578 lakh, +44.9% YoY and +6.6% QoQ, accelerating from +32.0% YoY in Q4FY26.
- EBITDA margin expanded to 29.9%, +190bps YoY and +290bps QoQ; employee costs grew 21.9% YoY versus revenue growth of 44.9%, while depreciation grew 21.7%.
- PAT rose 115.2% YoY to ₹10,088 lakh with other income of ₹313 lakh representing only 3.4% of PBT, supporting operating-led earnings quality.
- EPS increased 115.0% YoY to ₹5.16, tracking PAT growth and indicating no material dilution divergence.
Key concerns
- Gross margin compressed 420bps YoY to 71.0% even as raw-material cost declined to 31.0% of revenue from 35.8%; the filing does not disclose whether mix, pricing or product economics caused the compression.
- Consolidated PAT declined 6.4% QoQ to ₹10,088 lakh from ₹10,778 lakh despite revenue increasing 6.6% QoQ, indicating sequential earnings conversion weakened after the strong Q4FY26 base.
- A wholly owned subsidiary reported ₹299.72 lakh revenue and a ₹156.68 lakh net loss before consolidation adjustments; the group’s earnings remain dependent on subsidiary execution.
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