SASolara Active Pharma Sciences541540Earnings call transcript

Q2 FY27 call: revenue up 33% to INR418 crores, PAT INR28.5 crores; Ibuprofen review to close in 12 weeks

Q2 FY27 earnings call transcript: management calls it the best quarter in about five years on profitability.

By ScoutQuest · Fri 23 Oct 2026, 4:43 PM IST · 2 min read

Revenue

INR418 crores, up 33% year-on-year

EBITDA

INR77 crores (+118%), more than doubled

PAT

INR28.5 crores versus a loss of around INR10 crores a year earlier

Headline numbers

• Revenue INR418 crores, up 33% year-on-year
• EBITDA INR77 crores, up 118% (more than doubled)
• PAT INR28.5 crores versus a loss of around INR10 crores in the same quarter last year
• Earnings per share INR5.92; adjusted for the exceptional item, EPS would have been better by close to INR1 per share

Management described Q2 FY27 as the best quarter in about five years on gross margin, EBITDA and PAT. It said the quarter was delivered while the West Asia crisis continued, with pricing pressure and raw material availability challenges causing intermittent production stoppages.

Base business versus Ibuprofen

• Base business revenue INR327 crores, up 37%, above the INR300 crores mark for the third quarter in a row
• Base business EBITDA up 68% to INR77 crores, margin up about 440 basis points to 23.6%
• Ibuprofen revenue INR91 crores, up 21% year-on-year and 18% quarter-on-quarter
• Ibuprofen EBITDA loss narrowed to almost breakeven, from roughly INR9 crores loss in Q1
• Regulated markets contributed about 78% of revenues

Margins and costs

• Gross margin INR197 crores, at 47.2% of revenue
• EBITDA margin 18.4% against 11% a year earlier, up roughly 720 basis points
• Ibuprofen gross margin recovered to 36%
• Operating cost base held at roughly INR120-odd crores, largely flat over recent quarters

Balance sheet

• Net debt reduced to close to INR500-odd crores from INR614-odd crores as on March 2026
• Of the reduction, INR100-odd crores came from rights issue money and INR14 crores from operational cash flows
• Net debt to EBITDA improved to close to 1.8x from 3.2x
• Net debt rose close to INR20-odd crores sequentially on working capital and maintenance capex
• Debt down close to INR114-odd crores in H1; net finance cost lower by close to INR32 million, a reduction of roughly 16%
• Depreciation close to INR266 million
• Exceptional loss of INR45 million, mainly from unutilised equipment at the Vizag facility that was sold

First half FY27

• EBITDA close to INR140-odd crores, up 51%, at a margin of 17.5% against close to 15% earlier
• PAT close to INR45-odd crores, against almost breakeven in H1 last year

Operational and regulatory updates

• Second DMF shared for the year; three more hoped to be shared before the end of the financial year
• Mangalore facility completed an ANVISA audit in August, after the Cuddalore facility's audit in May
• CRISIL upgraded the ESG rating from adequate to strong

What management guided

• The strategic review of the Ibuprofen business is expected to close in 12 weeks, with an update on the outcome and next steps then
• Net debt to EBITDA is expected to stay in a similar range over the medium term
• Continued focus on operating cost leverage, margin expansion, working capital discipline and funding growth capex
• Ibuprofen's improvement was described as partly temporary, with the environment still like a commodity pricing market to be watched in the next quarter

Nothing here is a view, opinion or recommendation of ScoutQuest, its parent, directors or employees. ScoutQuest is a technology company: this page was assembled automatically from public sources using artificial intelligence, and may contain errors or omissions. Confirm everything against the original source before you act on it. Any use of this page is at your own risk, and neither ScoutQuest nor its parent, directors or employees accepts liability for it.

About ScoutQuest · Logos provided by Logo.dev