Supriya Lifescience Limited has released its financial results for the second quarter of FY27. The company reported revenue of INR206 crores, a 3.2% year-on-year growth, with EBITDA at INR45 crores and a margin of 22%. Key factors influencing margins include regulatory changes in LATAM, increased operating expenses at the Ambernath facility, and high raw material prices. The company has revised its full-year EBITDA margin guidance to 23%-25%.
Supriya Lifescience Q2 FY27 Earnings Call Transcript Highlights
Supriya Lifescience Limited hosted its Q2 FY27 Earnings Conference Call on November 06, 2026, where management discussed the company’s financial performance and outlook. The call featured insights from Dr. Saloni Wagh (Managing Director), Ms. Shivani Wagh (Joint Managing Director), and Mr. Krishna Raghunathan (Chief Financial Officer).
Financial Performance – Q2 FY27
The company reported revenue from operations of INR206 crores for Q2 FY27, representing a 3.2% year-on-year growth compared to INR200 crores in Q2 FY26. EBITDA for the quarter stood at INR45 crores, with an EBITDA margin of 22%. This reflects a decrease from INR73 crores in Q2 FY26. Profit After Tax (PAT) was INR29 crores, down from INR50 crores in the prior year’s comparable quarter, resulting in a PAT margin of 14.2% for Q2 FY27.
Financial Performance – H1 FY27
For the first half of FY27, revenue from operations reached INR396 crores, an increase of 14.8% year-on-year from INR345 crores in H1 FY26. EBITDA for H1 FY27 was INR93 crores, a decrease of 25.3% from INR124 crores in H1 FY26, with EBITDA margins at 23.4%. PAT for H1 FY27 stood at INR53 crores, down from INR85 crores in H1 FY26, resulting in a PAT margin of 13.5%.
Factors Impacting Margins
Management highlighted several factors contributing to the dip in margins:
- LATAM Regulatory Changes: New regulations categorizing high-margin controlled products as controlled substances in markets like Colombia, Peru, and Uruguay have impacted demand. Customers now require import authorizations, causing a temporary slowdown.
- Ambernath Facility Expenses: Higher operating expenses were incurred at the Ambernath facility, which is currently in its ramp-up phase. Commercial production and sales are expected to improve cost absorption in coming quarters.
- Raw Material and Solvent Prices: Ongoing geopolitical tensions have kept raw material and solvent prices high, affecting margins.
Geographical Performance and Business Update
Exports constituted 80% of revenue in Q2 FY27. Europe contributed 43%, Asia 36%, and LATAM 12% of exports. The company welcomed Mr. Mangesh Vaze as Chief Operating Officer. Backward integration now accounts for approximately 74% of total revenue. Two new anesthetic liquid inhalation products were launched from the Ambernath facility, with 2 ADHD products in the pipeline.
Revised Guidance and Outlook
The company revised its EBITDA margin guidance downwards to 23%-25% for the full year FY27. Management expects margin profiles to improve progressively as commercial sales from Ambernath scale up, the product mix improves, and raw material/solvent costs normalize. The revenue guidance of INR1,000 crores for FY27 remains on track.
Capacity Expansion and New Products
The Ambernath facility is projected to generate substantial revenue once EU approvals are secured, potentially adding INR450-500 crores. New product launches, including anesthetic, cardiovascular, advanced intermediates, and ADHD products, are seen as key growth drivers for the medium term. These products are described as globally large molecules with significant market potential. The company is also working on contrast media and whey protein products.
Addressing Investor Concerns
Management acknowledged investor concerns regarding communication and margin volatility. They reiterated that the current margin dip is viewed as a transient situation rather than a permanent change. Efforts are underway to improve communication and clarify the impact of dynamic market conditions and regulatory changes.
Source: BSE
