Wockhardt Q1 FY27 Results (NSE: WOCKPHARMA)
Signal: Loss reversed
The read
The earnings inflection continued with consolidated revenue at ₹929 crore, +25.9% YoY, and PAT at ₹107 crore versus a ₹108 crore loss, but revenue declined 3.7% QoQ and consolidated gross-margin expansion was only 140bps YoY, while standalone gross margin compressed 175bps; the recovery is positive but needs confirmation through sustained sequential growth and margin stability.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹929 Cr | +25.9% | -3.7% |
| Net profit | ₹107 Cr | +199.1% | |
| EPS | ₹6.55 | +218.4% | |
| EBIT margin | N/A |
P&L walk
Revenue increased to ₹929 crore, +25.9% YoY but -3.7% QoQ; gross margin expanded to approximately 65.6% from 64.2% YoY as purchases of stock-in-trade fell 22.1% YoY, while PAT turned positive at ₹107 crore from a ₹108 crore loss despite ₹52 crore finance costs.
Segments
The group is exclusively in the pharmaceutical business; consolidated revenue of ₹929 crore substantially exceeded standalone revenue of ₹561 crore, but consolidated PAT of ₹107 crore was broadly equal to standalone PAT of ₹107 crore, indicating subsidiaries added revenue without materially changing group profit.
Key positives
- Consolidated revenue rose 25.9% YoY to ₹929 crore, extending the growth acceleration from +2.9% in Q3FY25 and +23.2% in Q3FY26.
- Consolidated PAT turned positive at ₹107 crore from a ₹108 crore loss YoY as the prior-year ₹97 crore exceptional charge was absent.
- Purchase of stock-in-trade declined 22.1% YoY to ₹109 crore despite revenue growth of 25.9%, supporting consolidated gross-margin expansion of 140bps to approximately 65.6%.
- Employee benefits increased 18.7% YoY to ₹203 crore, slower than revenue growth of 25.9%, providing a favorable operating-cost trend.
Key concerns
- Consolidated revenue declined 3.7% QoQ from ₹965 crore and PAT declined 34.8% QoQ from ₹164 crore, showing sequential momentum softened after the strong Q4.
- Standalone gross margin compressed approximately 175bps YoY to 70.9% as cost of materials consumed rose 43.2% to ₹106 crore, with the driver not disclosed.
- Consolidated finance costs rose 8.3% YoY to ₹52 crore, despite the operating recovery.
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