Sudeep Pharma Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 196.70 Cr (+20.92% YoY) and PAT growth of +12.47% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details| Results date | October 28, 2026 |
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| Quarter | Q2 FY 2026-2027 |
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| Revenue (Q2) | Rs. 196.70 Cr (+20.92% YoY) |
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| PAT (Q2) | Rs. 51.81 Cr (+12.47% YoY) |
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| EBITDA margin | 37.23% (+313 bps YoY) |
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| EPS (Q2) | Rs. 4.59 (+9.29% YoY) |
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| Market cap | Rs. 12,424.34 Cr |
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| CMP | Rs. 1,100.00 |
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Quarter Snapshot
Q2 FY27 delivered 20.92% YoY revenue growth with EBITDA margin of 37.23% landing inside management's guided 37-38% band, driven by PFN segment growth of 57.46% YoY at 40.83% margin on near-flat material costs. The Specialty ingredients segment missed its promised Q2 re-acceleration (-24.90% YoY reported), the effective tax rate rose ~563 bps YoY, and working-capital days remain at ~216 vs the 150-160 target. Execution is broadly on track with margin recovery confirmed a quarter after Q1's dip, though cash conversion (0.47x PAT) and the SI recovery remain open items.
Key Investment Insights
Key Positives
- Consolidated revenue grew 20.92% YoY to Rs.196.70 Cr and 24.28% QoQ; H1 FY27 revenue Rs.354.97 Cr, +23.44% YoY
- EBITDA of Rs.73.24 Cr grew 32.05% YoY at 37.23% margin, inside management's guided 37-38% band (+313 bps YoY, +254 bps QoQ)
- PFN segment revenue grew 57.46% YoY at 40.83% segment margin (+828 bps YoY), exceeding management's target of exceeding FY26's 10% growth
- Cost of material consumed rose only 1.27% YoY against 20.92% revenue growth; net material cost fell to 35.34% of revenue from 37.46%
- H1 CFO more than doubled YoY to Rs.43.50 Cr from Rs.17.73 Cr
- Standalone revenue grew 56.36% YoY with PAT up 42.36% YoY; subsidiaries contributed Rs.9.11 Cr to owners' PAT
- IPO-funded machinery deployment accelerated: Rs.19.65 Cr in Q2 alone vs Rs.0.36 Cr cumulative at June 2026
Risk Factors
- Speciality ingredients segment revenue declined 24.90% YoY with margin falling to 27.77% from 36.04%, missing management's commitment to return to historical growth beginning Q2
- Effective tax rate rose to 27.06% from 21.43% YoY, a ~563 bps ongoing headwind that held PAT growth to 12.47% vs EBITDA growth of 32.05%
- Working-capital days at ~216 vs the 150-160 day FY27 target; inventories up 27.3% since March to Rs.274.95 Cr
- Other income halved YoY to Rs.5.98 Cr from Rs.10.17 Cr
- Net debt rose Rs.38.90 Cr since March 2026 to Rs.72.54 Cr; FCF was negative at -Rs.34.03 Cr in H1