Windlas Biotech Q2 FY27 Results (NSE: WINDLAS)
Signal: Margin expansion
The read
The key inflection is sequential margin recovery rather than profit acceleration: operating margin rose to 11.13% from 7.85% QoQ, but PAT growth remained only 1.42% YoY because employee costs grew 31.19% and finance costs 129.72%; the buyback supported EPS growth of 3.18%.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹263.91 Cr | +18.66% | +6.37% |
| Net profit | ₹18.05 Cr | +1.42% | |
| EPS | ₹8.75 | +3.18% | |
| EBIT margin | 11.13% |
P&L walk
Standalone revenue increased to ₹2,639.08 million, +18.66% YoY and +6.37% QoQ, with gross margin broadly stable at 38.48%; EBITDA margin expanded to 11.13%, but employee costs rose 31.19% YoY and finance costs 129.72%, limiting PAT growth to 1.42%.
Key positives
- Revenue reached ₹2,639.08 million, up 18.66% YoY and 6.37% QoQ, extending the company’s recent top-line momentum.
- Operating margin improved to 11.13%, up 171bps YoY and 328bps QoQ, while gross margin remained stable at 38.48%.
- Operating cash flow was ₹534.79 million in H1FY27 versus ₹558.90 million in H1FY26, remaining positive despite higher receivables and inventories.
- The April 2026 buyback reduced paid-up share capital to ₹103.18 million from ₹105.39 million YoY, helping basic EPS rise 3.18% versus PAT growth of 1.42%.
Key concerns
- Employee benefit expense rose 31.19% YoY to ₹478.14 million, increasing to 18.12% of revenue from 16.73% and absorbing much of the revenue growth.
- Finance cost rose 129.72% YoY to ₹23.34 million and 41.45% QoQ, indicating rising pressure from borrowings and funding costs.
- PAT rose only 1.42% YoY to ₹180.52 million despite revenue growth of 18.66%, showing weak conversion of sales growth into earnings.
- Trade receivables increased to ₹2,886.35 million from ₹2,274.01 million at March 31, 2026, while inventories rose to ₹1,133.22 million from ₹618.24 million.
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