Shilpa Medicare Q1 FY27 Results (NSE: SHILPAMED)

5 Aug 2026 · Analysis by Alpha Inflection

Signal: Growth reaccelerated

The read

Consolidated revenue growth accelerated to 45% YoY (from 32% in Q4FY26), but the headline PAT of ₹100.88 Cr is inflated by a one-time deferred tax reversal of ₹28.4 Cr (switch to new tax regime) and an exceptional legal provision of ₹6.38 Cr. Gross margin compressed 420bps on input cost inflation (raw material % jumped to 29% from 24.8%), causing EBITDA margin to edge down to 29.9% from 30.3% a year ago. The core operating profit (PBT before exceptional) grew ~80%, still strong. The trajectory shows robust top-line momentum but margin headwinds from raw materials that need monitoring.

P&L walk

Revenue growth accelerated to 44.9% YoY, but gross margin compressed 420bps as raw material % rose from 24.8% to 29.0% (input cost inflation). EBITDA grew 43.3% but margin slipped 36bps to 29.9%. PAT jumped 115% primarily due to a one-time deferred tax reversal of ₹28.4 Cr (switched to new tax regime) and lower exceptional items. Excluding these, PBT grew ~80%.

Key positives

• Revenue grew 44.9% YoY to ₹465.78 Cr, accelerating from 32% in Q4FY26 — the highest quarterly revenue ever.
• EBITDA grew 43.3% YoY, reflecting strong operating momentum despite margin compression.
• Deferred tax reversal added ₹28.4 Cr to PAT, but even ex-that, PBT grew ~80% YoY.
• Standalone revenue surged 83% YoY on licensing and domestic growth, with EBITDA margin expanding 670bps to 34.7%.

Key concerns

• Gross margin compressed 420bps YoY due to input cost inflation (raw material % rose from 24.8% to 29.0%).
• PAT quality is reliant on a one-time deferred tax reversal of ₹28.4 Cr; the normalised effective tax rate would be ~25%, reducing PAT to ~₹75 Cr.
• Exceptional legal provision of ₹6.38 Cr (vendor claim settlement) dented operating profit.

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