Unichem Labs. Q2 FY27 Results (NSE: UNICHEMLAB)
Signal: Loss reversed
The read
The operating recovery is real but uneven: consolidated revenue rose 10.6% YoY and EBITDA margin was 14.0%, yet margin fell 100bps YoY as other expenses increased 33.3%, standalone PAT was only ₹1.49 crore, and ₹22.22 crore consolidated PAT included a ₹24.26 crore claims provision; the next thesis test is whether cash conversion improves after operating cash flow of -₹64.80 crore.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹640.22 Cr | +10.6% | +1.2% |
| EBIT | ₹59.34 Cr | +6.6% | |
| Net profit | ₹22.22 Cr | N/M (from -11.89 Cr) | |
| EPS | ₹3.16 | N/M (from -1.69) | |
| EBIT margin | 14.0% |
P&L walk
Revenue increased to ₹640.22 crore, +10.6% YoY and +1.2% QoQ, while EBITDA rose to ₹89.83 crore but its margin eased to 14.0% from 15.0% YoY; PAT returned to ₹22.22 crore from a ₹11.89 crore loss, despite a ₹24.26 crore claims provision.
Segments
The consolidated group materially outperformed the parent: consolidated revenue was ₹640.22 crore and PAT ₹22.22 crore versus standalone revenue of ₹401.90 crore and PAT of ₹1.49 crore, indicating subsidiaries contributed most of the group's earnings.
Key positives
- Consolidated revenue reached ₹640.22 crore, +10.6% YoY and +1.2% QoQ, extending the recovery from ₹578.96 crore a year ago.
- Consolidated PAT returned to ₹22.22 crore from a ₹11.89 crore loss YoY despite a ₹24.26 crore claims provision.
- Employee costs rose only 5.4% YoY to ₹105.57 crore versus 10.6% revenue growth, reducing employee-cost intensity to 16.5% of revenue from 17.3%.
Key concerns
- EBITDA margin fell 100bps YoY to 14.0% because other expenses rose 33.3% YoY to ₹189.70 crore, faster than revenue growth of 10.6%.
- Operating cash flow was negative at ₹64.80 crore for H1FY27, with ₹229.48 crore absorbed by trade receivables and other assets and ₹108.49 crore by inventories.
- Standalone PAT was only ₹1.49 crore on ₹401.90 crore revenue, versus consolidated PAT of ₹22.22 crore, leaving group earnings dependent on subsidiaries.
- Raw-material cost increased to 39.8% of consolidated revenue from 33.4% YoY even as reported gross margin expanded to 57.8%, making the margin improvement sensitive to inventory accounting movements.
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