Concord Biotech Q2 FY27 results: net profit up 10.3% to ₹69.57 crore, revenue up 25.1%

How did Concord Biotech perform in Q2 FY27?

Concord Biotech reported consolidated Q2 FY27 revenue of ₹309.07 crore, up 25.1% from ₹247.06 crore in Q2 FY26 and 20.0% from ₹257.49 crore in Q1 FY27. EBITDA was ₹104.38 crore, up 18.0% year on year and 26.7% sequentially, while the margin fell 2.0 percentage points to 33.8% from 35.8% a year earlier. It rose 1.8 percentage points from 32.0% in Q1 FY27.

Consolidated net profit was ₹69.57 crore in Q2 FY27, against ₹63.06 crore in Q2 FY26 and ₹57.70 crore in Q1 FY27. Basic EPS was ₹6.65, compared with ₹6.03 a year earlier and ₹5.52 in the previous quarter. Profit attributable to owners was ₹70.65 crore, while the standalone basis reported revenue of ₹312.31 crore and PAT of ₹75.71 crore. The board approved the unaudited standalone and consolidated results for the quarter and half year ended 30 September 2026.

What changed in Concord Biotech's costs and profit?

Total expenses rose 26.0% to ₹223.10 crore from ₹177.02 crore in Q2 FY26, outpacing the 25.1% increase in revenue. Cost of materials increased 11.1% by ₹6.36 crore to ₹63.66 crore, employee cost rose 17.7% by ₹7.85 crore to ₹52.31 crore, and other expenses increased 21.1% by ₹13.73 crore to ₹78.82 crore. Finance costs fell 50.0% by ₹0.03 crore to ₹0.03 crore, while depreciation was nearly unchanged, falling 0.1% by ₹0.01 crore to ₹18.38 crore.

Other income fell 23.8% by ₹3.18 crore to ₹10.17 crore from ₹13.35 crore in Q2 FY26. Tax expense rose 14.5% by ₹3.29 crore to ₹25.91 crore from ₹22.62 crore, and there was no exceptional item. PBT increased 15.3% by ₹12.75 crore to ₹96.14 crore, but the PAT margin fell 3.0 percentage points to 22.5% from 25.5%. Management attributed lower margins to higher raw-material prices, particularly solvents, changes in product mix, and power and fuel costs.

How did the first half of FY27 go?

In the first half of FY27, consolidated revenue was ₹566.56 crore, up 25.6% by ₹115.51 crore from ₹451.05 crore in H1 FY26. Total income increased 23.3% by ₹111.48 crore to ₹589.55 crore, while PBT rose 23.2% by ₹32.57 crore to ₹173.20 crore. The investor presentation reported H1 EBITDA of ₹186.8 crore, up 25% from ₹149.9 crore in H1 FY26.

H1 FY27 net profit was ₹127.27 crore, up 18.8% by ₹20.15 crore from ₹107.12 crore, and basic EPS rose 18.8% by ₹1.93 to ₹12.17 from ₹10.24. The investor presentation reported an H1 EBITDA margin of 33.0%, down 20 basis points from 33.2%, and a PAT margin of 22.5%, down 120 basis points from 23.7%. Revenue grew across API and formulation businesses, with the presentation reporting API growth of 30% and formulation growth of 6% for the quarter.

What do the balance sheet and cash flow show?

Total assets increased to ₹2,326.97 crore at 30 September 2026 from ₹2,234.73 crore at 31 March 2026, while total equity rose to ₹2,071.88 crore from ₹2,015.14 crore. The company reported no borrowings at either balance-sheet date. Cash fell to ₹7.52 crore from ₹12.19 crore, inventories increased to ₹397.79 crore from ₹326.36 crore, trade receivables declined to ₹412.49 crore from ₹460.20 crore, and trade payables increased to ₹112.13 crore from ₹101.91 crore.

H1 FY27 operating cash flow was ₹168.21 crore, compared with ₹151.08 crore in H1 FY26. Investing cash flow was negative ₹93.32 crore against negative ₹21.28 crore, while financing cash flow was negative ₹79.56 crore against negative ₹113.42 crore. Capital expenditure was ₹59.99 crore in H1 FY27, compared with ₹53.50 crore in H1 FY26.

How has Concord Biotech done over the last 8 quarters?

Revenue reached its highest level in the reported series at ₹429.88 crore in Q4 FY25 and its lowest at ₹203.99 crore in Q1 FY26. It then rose through Q4 FY26, fell to ₹257.49 crore in Q1 FY27, and increased to ₹309.07 crore in Q2 FY27. Revenue and profit each rose year on year in each of the last two quarters.

PAT peaked at ₹140.39 crore in Q4 FY25 and bottomed at ₹44.06 crore in Q1 FY26. It subsequently moved to ₹63.64 crore in Q3 FY26, ₹88.47 crore in Q4 FY26, fell to ₹57.70 crore in Q1 FY27 and rose to ₹69.57 crore in Q2 FY27. The EBITDA margin peaked at 44.3% in Q4 FY25, fell to 30.1% in Q1 FY26, and improved to 33.8% in Q2 FY27.

What else did the company announce?

On 27 October 2026, the board approved the unaudited standalone and consolidated financial results for the second quarter and half year ended 30 September 2026. It also fixed 4 November 2026 as the record date for a 1:1 bonus issue, with one bonus equity share for every existing fully paid-up share, subject to applicable statutory and regulatory approvals. The deemed allotment date is 5 November 2026.

The board also reconstituted its Audit Committee, Nomination and Remuneration Committee, Risk Management Committee, and Corporate Social Responsibility Committee. The same-day investor presentation said Concord Biotech received USFDA approval for ANDA applications relating to Tofacitinib and Mycophenolate Mofetil Oral Suspension, completed a USFDA inspection of its Unit II formulation facility with one minor procedural observation unrelated to GMP, and launched its Inspira dermatology division.

What did Concord Biotech's management say?

Management said FY27 revenue growth is expected slightly above the historical 18-19%, supported by first-half growth of 26% and visibility for Q3. It expects API growth over the next 2-3 years to be slightly above 18-19%, and medium-term EBITDA margin of 38-40% as Stellon, injectables, and Unit III contribute. The effective tax rate is expected at 24-25% for the rest of FY27 and FY28, while capital expenditure is planned at ₹50-60 crore in each of FY27 and FY28.

Management said injectables utilisation was 5% and Unit-II utilisation was 21%. Converting customer audits into injectables contracts in H2 FY27 was identified as a key priority, with around ₹300 crore of top-line opportunity targeted over 3-4 years against a total addressable market of about ₹5,000 crore. Management also said formulation growth was constrained by API substitution in emerging markets and the Advergent-to-Stellon transition, while new investments in Stellon and injectables diluted reported margins before revenue scaled.

Joint Managing Director and CEO Ankur Vaid said: “We believe these pressures are temporary in nature and have impacted our quarterly performance.” He added: “As these investments begin to contribute to revenue and the input cost environment normalizes, we expect our margins to progressively improve.” He also said Concord Biotech’s niche capabilities in fermentation-based products and leadership position in key molecules continued to provide a distinct competitive advantage. No analyst concerns were recorded in the available call summary.

How did Concord Biotech shares react?

The filing appeared after market hours. Concord Biotech’s shares were down 1.0% after 5 minutes, 2.4% after 15 minutes and 1.3% after 30 minutes from the price when the filing appeared. On the reaction day, the stock fell 8.8% from its previous close, compared with a 0.6% rise for the Pharmaceuticals industry median and a 0.3% rise for the Nifty Smallcap 250.

By the next day's close, the stock was down 11.4% from its pre-results close. Over the same period, the industry median rose 1.1% and the Nifty Smallcap 250 rose 1.0%, leaving Concord Biotech 12.6 percentage points below the industry median. Earlier reaction-day moves included 3.2% on 13 November 2025, a 20.0% fall on 13 February 2025 and a 5.4% rise on 29 May 2025.

How did other Pharmaceuticals companies do?

Among 60 Pharmaceuticals companies compared for the quarter, the median revenue growth was 18.9%. Concord Biotech’s 25.1% revenue growth was higher than 37 peers that grew more slowly and lower than 23 peers that grew faster. Of the 54 peers for which profit was compared, 38 reported higher profit.