Windlas Biotech Q2 FY27 results: net profit up 1.4% to ₹18.05 crore, revenue up 18.7%

How did Windlas Biotech perform in Q2 FY27?

Windlas Biotech reported standalone revenue of ₹263.91 crore in Q2 FY27, up ₹41.51 crore or 18.7% from Q2 FY26 and ₹15.81 crore or 6.4% from Q1 FY27. Total income rose ₹41.73 crore or 18.5% year on year to ₹267.77 crore. Following the dissolution of Windlas Inc., USA, the company said it was no longer required to prepare consolidated financial statements from 1 April 2026, so these are standalone figures.

EBITDA for Q2 FY27 was ₹29.37 crore, up ₹0.81 crore or 2.8% from Q2 FY26 and ₹2.69 crore or 10.1% from Q1 FY27. The EBITDA margin was 11.1%, down 1.7 percentage points year on year but up 0.3 percentage points sequentially. Profit before tax was ₹23.30 crore, down ₹0.29 crore or 1.2% from Q2 FY26 and up ₹0.36 crore or 1.6% from Q1 FY27.

Net profit was ₹18.05 crore, compared with ₹17.80 crore in Q2 FY26 and ₹17.65 crore in Q1 FY27. Basic EPS was ₹8.75, up ₹0.27 or 3.2% year on year and ₹0.29 or 3.4% from the previous quarter. The net profit margin was 6.8%, down 1.2 percentage points from Q2 FY26 and 0.3 percentage points from Q1 FY27.

What changed in Windlas Biotech's costs and profit?

Total expenses rose ₹42.01 crore or 20.7% from Q2 FY26 to ₹244.47 crore, exceeding the ₹41.73 crore increase in total income. Employee cost increased ₹11.36 crore or 31.2% to ₹47.81 crore, finance costs rose ₹1.31 crore or 128.4% to ₹2.33 crore, and other expenses increased ₹3.92 crore or 19.2% to ₹24.37 crore. Cost of materials moved from ₹8.04 crore to a negative ₹0.19 crore, a difference of ₹8.23 crore, while depreciation fell ₹0.01 crore.

Other income increased ₹0.21 crore or 5.8% from Q2 FY26 to ₹3.86 crore. Tax expense fell ₹0.54 crore or 9.3% to ₹5.25 crore. There was no exceptional item in either Q2 FY27 or Q2 FY26. Management said reported H1 margins were affected by ₹14.06 crore of non-cash ESOP expense; the presentation did not state why employee and finance costs rose during the quarter.

Against Q1 FY27, total expenses increased ₹14.19 crore or 6.2% to ₹244.47 crore. Employee cost rose ₹3.38 crore or 7.6%, finance costs increased ₹0.68 crore or 41.2%, depreciation rose ₹0.38 crore or 5.3%, and other expenses increased ₹0.11 crore or 0.5%. Other income fell ₹1.25 crore or 24.5% to ₹3.86 crore, while tax expense fell ₹0.03 crore or 0.6% to ₹5.25 crore.

How did the first half of FY27 go?

For H1 FY27, standalone revenue was ₹512.01 crore, up ₹79.52 crore or 18.4% from ₹432.49 crore in H1 FY26. Total income rose ₹79.61 crore or 18.0% to ₹520.98 crore from ₹441.37 crore. The company crossed ₹500 crore in half-year revenue for the first time, according to management.

Profit before tax for the first half was ₹46.24 crore, down ₹0.61 crore or 1.3% from ₹46.85 crore in H1 FY26. Net profit was ₹35.70 crore, up ₹0.23 crore or 0.6% from ₹35.47 crore, while basic EPS rose ₹0.30 or 1.8% to ₹17.21 from ₹16.91. Management attributed lower reported margins to ₹14.06 crore of non-cash ESOP expense.

What do the balance sheet and cash flow show?

At 30 September 2026, total assets were ₹1,015.34 crore, up from ₹907.34 crore at 31 March 2026. Total equity fell to ₹569.11 crore from ₹580.83 crore, while borrowings rose to ₹46.24 crore from ₹29.88 crore. Cash and cash equivalents were ₹0.97 crore, compared with ₹0.53 crore at the previous balance-sheet date.

Inventories rose to ₹113.32 crore from ₹61.82 crore, trade receivables increased to ₹288.63 crore from ₹227.40 crore, and trade payables rose to ₹318.67 crore from ₹238.49 crore. H1 FY27 operating cash flow was ₹53.48 crore, compared with ₹55.89 crore in H1 FY26; investing cash flow was negative ₹2.83 crore against negative ₹43.73 crore, while financing cash flow was negative ₹50.20 crore against negative ₹12.37 crore.

How has Windlas Biotech done over the last 8 quarters?

Revenue rose in each of the last eight quarters on a year-on-year basis and increased from ₹195.02 crore in Q3 FY25 to a period high of ₹263.91 crore in Q2 FY27. Net profit moved from ₹15.23 crore in Q3 FY25 to ₹18.05 crore in Q2 FY27, but its low point in the series was ₹14.95 crore in Q3 FY26. The current direction was higher for both revenue and profit.

The EBITDA margin peaked at 12.8% in Q2 FY26 and bottomed at 10.5% in Q3 FY26. It then rose to 10.6% in Q4 FY26, 10.8% in Q1 FY27 and 11.1% in Q2 FY27, indicating sequential improvement from the low, though it remained below the Q2 FY26 peak.

What else did the company announce?

The board approved the unaudited standalone financial results for the quarter and half year ended 30 September 2026, prepared under Ind AS, and noted the limited review report issued by J C Bhalla & Co. The same-day filings did not announce a new dividend or fund raise. Management said the company had paid ₹13 crore of dividend related to FY26 and completed a ₹47 crore buyback without promoter participation.

Ashok Kumar Windlass resigned as whole-time director and director with effect from 5 November 2026 at 10.00 a.m. under the company’s long-term succession plan and also ceased to be a member of the Corporate Social Responsibility Committee. The board approved his appointment as Senior Management Personnel from 6 November 2026, subject to shareholder approval.

Hitesh Windlass, the managing director and promoter, was appointed chairman of the board with effect from 5 November 2026. The board said the financial results and management appointments were approved at its meeting on 5 November 2026.

What did Windlas Biotech's management say?

Management said Q2 revenue growth reflected the Generic Formulations CDMO business remaining the anchor, with customers assigning a larger share of portfolios and new products. It said the Trade Generics and Institutional portfolio was being reshaped by replacing codeine-based products with new launches, while Exports continued to face long registration and commercialisation lead times.

Management said Plant-6, an oral solid drugs facility, was commercialised in September 2026. It said the Plant-2 extension and injectables facility were progressing steadily, and Plant-4 and Plant-5 received EU GMP certification in Q2 FY27. The company aims to scale injectables across all three verticals and broaden its portfolio towards critical-care and specialised therapeutic segments.

Management said it aimed to maintain the dividend payout ratio as near as possible to 20% of consolidated profit after tax, subject to capital requirements for the growth plan and a positive cash-flow position. It also said it would target new customer acquisitions, mitigate concentration risk and fast-track launches aligned with upcoming patent expirations.

Management identified Trade Generics and Institutional revenue falling 30% year on year in Q2 FY27 as a risk. It also said export registrations and dossiers have long lead times and few investments had become commercial supplies. On working capital, management said trade receivables rose to ₹289 crore from ₹198 crore and inventories rose to ₹113 crore from ₹70 crore, while net operating cash flow fell to ₹53 crore from ₹56 crore.

How did other Pharmaceuticals companies do?

Among 67 Pharmaceuticals companies that filed for the quarter, the median revenue growth was 20.6%. Windlas Biotech’s revenue growth was below that median; 31 peers grew more slowly and 36 grew faster than the company. Of 62 peers for which profit was compared, 45 reported higher profit.