Wanbury Q1 FY27 Results (NSE: WANBURY)

11 Aug 2026 · Analysis by Alpha Inflection

Signal: Margin pressure

The read

The key inflection is a sharp margin reversal after the recent recovery: EBITDA margin fell to 10.0% from 15.2% YoY and 18.2% in Q4FY26, while PAT fell 76.0% to ₹3.24 crore despite revenue growth of 1.5%; the near-term thesis depends on the stated Q2FY27 raw-material pass-through, lower borrowing cost below 10%, and commercialisation of the new API block.

P&L walk

Standalone revenue rose 1.5% YoY to ₹165.58 crore, but gross margin fell to 52.5% from 54.0% and EBITDA margin fell to 10.0% from 15.2% as raw-material inflation and a higher employee cost base outweighed modest topline growth; PAT declined 76.0% to ₹3.24 crore.

Key positives

• Refinancing of ₹205 crore reduced the stated borrowing cost from 12.5% per annum to below 10% from 1 July 2026, creating a prospective finance-cost tailwind from Q2FY27.
• Tanuku cleared the Australian TGA quality inspection and, after receipt of the GMP certificate, the company expects to ship 3 additional APIs to Australia.
• The Patalganga MFDS Korea inspection was completed with zero observations and the formal audit report and GMP certificate were received during the quarter.
• The new Andhra Pradesh manufacturing block remains under validation, with commercial-scale-up expected to contribute from coming quarters.

Key concerns

• Gross margin fell 150bps YoY to 52.5% and 790bps QoQ to 52.5% as solvents and crude-oil-linked input prices increased suddenly; management said the full inflation could not be passed through in Q1.
• EBITDA declined 33.0% YoY to ₹16.6 crore and EBITDA margin contracted 517bps YoY to 10.0%, with higher employee costs for growth initiatives adding to the gross-margin pressure.
• PAT declined 76.0% YoY to ₹3.24 crore and 85.1% QoQ, showing substantial earnings sensitivity to input costs and operating margin.

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