Venus Remedies Q1 FY27 Results (NSE: VENUSREM)
Signal: Margin expansion
The read
Venus Remedies reports a 6th consecutive quarter of margin expansion (EBITDA +680bps YoY to 20.6%), driven by lower raw material costs and operating leverage. The core standalone business is performing strongly with PAT ₹25.53 Cr, but the consolidated result is dampened by the subsidiary Venus Pharma GmbH (loss ₹2.55 Cr) which remains under restructuring — the auditor's emphasis-of-matter on ₹286 Cr share application money pending allotment is a governance flag worth monitoring. Revenue growth decelerated sequentially on seasonality, but YoY trajectory remains robust at 30.4%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹178.86 Cr | 30.4% | -31.0% |
| EBIT | ₹23.03 Cr | 267.1% | |
| Net profit | ₹22.97 Cr | 139.3% | |
| EPS | ₹17.18 | 139.3% | |
| EBIT margin | 20.6% |
P&L walk
Revenue grew 30.4% YoY to ₹178.86 Cr, driven by volume-led growth in domestic branded formulations. Gross margin expanded ~550bps YoY as raw material cost fell to 46.5% of sales (vs 52.0% a year ago) — likely mix shift to higher-margin products and input cost deflation. EBITDA margins expanded 680bps YoY to 20.6%, with employee costs growing 15.1% (well below revenue growth), delivering a second consecutive quarter of operating leverage. Depreciation rose 9.5% YoY, stable. Finance cost negligible. PAT jumped 139.3% YoY to ₹22.97 Cr, tracking operating profit growth. EPS ₹17.18, same growth as PAT, no dilution. The consolidated result is dragged by subsidiary Venus Pharma GmbH (revenue ₹2.08 Cr, loss ₹2.55 Cr), which remains under restructuring — an auditor emphasis-of-matter notes ₹2,859.72 lakh share application money pending allotment.
Segments
Single segment 'Pharmaceuticals' — no disaggregation by geography or division within the filing.
Key positives
- Revenue ₹178.86 Cr, +30.4% YoY — volume-led growth in domestic formulations.
- Gross margin expanded ~550bps YoY to 52.8% as raw material cost % fell to 46.5% from 52.0%.
- EBITDA margin +680bps YoY to 20.6% — 6th consecutive quarter of expansion (since Q3FY25).
- Operating leverage: employee costs grew only 15.1% vs 30.4% revenue growth.
- PAT ₹22.97 Cr, +139.3% YoY — strong operating performance.
- Virtually debt-free (D/E 0.02, finance cost negligible).
- EPS ₹17.18, no dilution — equity base stable.
- Standalone PAT ₹25.53 Cr (+118.2% YoY) even stronger.
Key concerns
- Subsidiary Venus Pharma GmbH loss of ₹2.55 Cr drags consolidated PAT by ₹2.56 Cr — restructuring outcome uncertain.
- Revenue down 31% QoQ — partly seasonal but magnitude warrants tracking.
- Auditor emphasis-of-matter: ₹2,859.72 lakh share application money in subsidiary pending allotment for years — governance risk.
- QoQ EBITDA margin contraction 580bps from Q4FY26 (20.6% vs 26.4%) — though Q4FY26 was an exceptional quarter.
Research and educational content only. Not investment advice.