Wockhardt Q2 FY27 Results (NSE: WOCKPHARMA)
Signal: Steady quarter
The read
The trajectory remains a recovery from the loss-making FY25 period, with the second consecutive profitable quarter and revenue up 23.9% YoY, but the key inflection is negative: consolidated gross margin contracted 540bps to 64.8% and PAT fell 11.0% YoY to ₹73 crore despite 23.9% revenue growth.
| Metric | Value | YoY | QoQ |
|---|---|---|---|
| Revenue | ₹969 Cr | +23.9% | +4.3% |
| Net profit | ₹73 Cr | -11.0% | |
| EPS | ₹4.85 | +0.8% |
P&L walk
Revenue rose to ₹969 crore, +23.9% YoY and +4.3% QoQ, but gross margin fell to 64.8% from 70.2% as material costs increased faster than sales; finance costs were broadly stable at ₹56 crore and PAT declined 11.0% YoY to ₹73 crore.
Segments
The group reports a single pharmaceutical business segment; the material standalone-versus-consolidated gap is visible in revenue of ₹969 crore versus ₹580 crore and PAT of ₹73 crore versus ₹100 crore, indicating subsidiaries contribute substantial revenue but dilute reported group profit in the quarter.
Key positives
- Consolidated revenue reached ₹969 crore, up 23.9% YoY and 4.3% QoQ, extending the recovery from ₹782 crore in Q2FY26.
- Standalone PAT increased 85.2% YoY to ₹100 crore, while consolidated PAT remained positive at ₹73 crore for the second consecutive quarter.
- Finance costs were broadly controlled at ₹56 crore, up only 1.8% YoY, while consolidated revenue grew 23.9% YoY.
- Consolidated cash and cash equivalents increased to ₹330 crore from ₹217 crore at 31 March 2026.
Key concerns
- Consolidated gross margin compressed 540bps YoY to 64.8% as cost of materials consumed rose to 25.1% of revenue from 20.3%; the filing does not disclose a mitigating pricing or mix driver.
- PAT declined 11.0% YoY to ₹73 crore despite 23.9% revenue growth, showing that the margin pressure is reaching the bottom line.
- Other expenses increased 29.6% YoY to ₹263 crore, faster than revenue growth, and rose to 27.1% of revenue from 25.7%.
- Consolidated net debt was approximately ₹1,820 crore after combining borrowings of ₹2,150 crore with cash of ₹330 crore, leaving leverage relevant despite the return to profit.
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