Sudeep Pharma Q2 FY27 Results (NSE: SUDEEPPHRM)
Signal: Margin expansion
The read
Strong performance driven by core Pharma, Food & Nutrition which doubled its segment EBIT (+99.2% YoY), masking a cyclical contraction in Speciality Ingredients (-46.9% YoY PBIT). The capitalization of ₹176.6 Cr in PPE marks the commissioning of major new capacity with healthy EBITDA margins at 37.2%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹196.7 Cr | +20.9% | +24.3% |
| EBIT | ₹67.86 Cr | +31.4% | |
| Net profit | ₹51.81 Cr | +10.8% | |
| EPS | ₹4.59 | +9.3% | |
| EBIT margin | 34.5% |
P&L walk
Topline grew 20.9% YoY driven by Pharma, Food & Nutrition, while gross margin expansion (+212bps) and operating leverage lifted EBITDA margin to 37.2%.
Segments
Pharmaceutical, Food & Nutrition drove the performance with revenue up 57.5% YoY to ₹142.50 Cr and segment PBIT up 99.2% YoY to ₹55.12 Cr, while Speciality Ingredients dragged with revenue down 24.9% YoY and PBIT down 46.9% YoY to ₹12.74 Cr.
Key positives
- Pharmaceutical, food and nutrition segment EBIT almost doubled (+99.2% YoY) to ₹55.12 Cr on 57.5% YoY revenue growth.
- Consolidated EBITDA margin expanded 314bps YoY to 37.2%, reflecting strong operating leverage as EBITDA grew +32.1% YoY against +20.9% revenue growth.
- H1FY27 Operating cash flow improved 145% YoY to ₹43.50 Cr vs ₹17.73 Cr in H1FY26.
- Gross margin expanded by 212bps YoY to 64.7% on consolidated basis.
Key concerns
- Speciality ingredients segment saw sharp deterioration, with revenue falling 24.9% YoY to ₹54.20 Cr and PBIT declining 46.9% YoY to ₹12.74 Cr.
- Other income fell 41.1% YoY to ₹5.98 Cr, muting net profit growth relative to operating profit.
- Net debt increased from ₹33.64 Cr in March 2026 to ₹72.58 Cr as borrowings rose to support capex.
Research and educational content only. Not investment advice.