Unichem Labs. Q1 FY27 Results (NSE: UNICHEMLAB)
Signal: Margin expansion
The read
Standalone results show an inflection: revenue growth accelerated to 12.1% YoY (vs 9.1% in Q1FY26 from PRIOR RESULTS SERIES) and EBITDA margin expanded 190bps YoY, reversing a 400bps YoY decline in Q1FY26 — margin recovery driven by operating leverage (employee/other expenses lagging revenue) and gross margin tailwind. PAT growth of 35% YoY was aided by higher other income and a lower effective tax rate; excluding other income, operating PAT grew 30% YoY.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹123.46 Cr | 12.1% | 3.8% |
| EBIT | ₹10.77 Cr | 36.9% | |
| Net profit | ₹7.98 Cr | 35.0% | |
| EPS | ₹1.13 | 34.5% | |
| EBIT margin | 12.5% |
P&L walk
No consolidated figures in this standalone-only filing.
Segments
Pharmaceutical Formulations segment, the core business, reported revenue of ₹1,150 Mn (+12.2% YoY, +4.1% QoQ) and segment profit ₹190 Mn (+18.8% YoY), lifting consolidated profit; Others segment profit of ₹10 Mn grew 25.0% YoY but remains marginal.
Key positives
- Revenue growth +12.1% YoY to ₹1,234.56 Mn, accelerating from +9.1% YoY in Q1FY26.
- EBITDA margin expanded 190bps YoY to 15.5% — operating leverage delivered as employee costs (+11.6%) and other expenses (+8.5%) grew slower than revenue.
- PAT up 35.0% YoY to ₹79.76 Mn — fastest growth in three quarters.
- Gross margin improved by 150bps YoY to 59.0% — positive input cost / mix tailwind.
- Basic EPS ₹1.13, +34.5% YoY — no equity dilution.
Key concerns
- QoQ PAT growth marginal (+0.5%) — flat on sequential basis despite 3.8% revenue growth.
- Other income grew 25% YoY (₹12.34 Mn), providing 11% of pre-tax profit — reliance on non-core income for growth.
- Cost of materials + purchases + inventory changes / revenue at 39.0% — still elevated in absolute terms; raw material cost inflation risk remains.
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