Q1FY27 results: revenue up 6%, margins hit by semaglutide issue
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Revenue grew 6% YoY to Rs 8,071 Cr, driven by double-digit growth in India, Europe and Emerging Markets. North America rose 35% YoY to Rs 2,205 Cr. EBITDA at Rs 1,009 Cr (12.5%) was hit by a Rs 240 Cr semaglutide API related impact including inventory provisions; excluding this, margin was 15.4%. PAT rose 69% to Rs 443 Cr. Net cash surplus stood at Rs 3,058 Cr. Key launches included first-to-market bosutinib in the US and generic semaglutide in Canada. USFDA issued a Form 483 with 7 observations for the Bachupally biologics facility, which the company has responded to.
Semaglutide quality issue and USFDA observations are near-term overhangs, but strong base business growth and healthy cash balance remain positives for shareholders.