Wockhardt Q2 FY27 Results Analysis: PAT Jumps 85%, Margin Compresses 350 bps (WOCKPHARMA)
Cofacto Research
Published November 02, 2026
4 min read
Negative
Wockhardt Ltd's Q2 FY27 numbers came in soft, with revenue of Rs. 969.00 Cr (+23.91% YoY) and PAT growth of -10.98% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details| Results date | November 02, 2026 |
|---|
| Revenue (Q2) | Rs. 969.00 Cr (+23.91% YoY) |
|---|
| PAT (Q2) | Rs. 73.00 Cr (-10.98% YoY) |
|---|
| EBITDA margin | 16.92% (-350 bps YoY) |
|---|
| EPS (Q2) | Rs. 4.85 (+0.83% YoY) |
|---|
Quarter Snapshot
Consolidated revenue grew 23.91% YoY to Rs.969 Cr and standalone PAT rose 85.19% YoY, but consolidated EBITDA margin compressed ~350 bps YoY to 16.92%, breaking a three-quarter margin recovery and falling below FY26's 18.68%. The other-expense surge (+29.56% YoY), loss-making overseas subsidiaries, and negative H1 FCF of Rs.(1) Cr against a Rs.200-300 Cr launch capex plan frame the investment debate around whether Zaynich launch costs are the drag and whether margins recover once the 12-18 month guided drag lapses.
Q2 FY27 Expectations vs Results
| Driver | Expected before results | What happened | Verdict |
|---|
| Revenue | "likely in-line to ahead"; "QoQ direction the first thing to check" after Q1's −3.73% | +23.91% YoY, +4.31% QoQ | Played out |
| Margins | "flat to modestly compressing... while holding above FY26's 18.6%" | 16.92% — below FY26's 18.68%, −330 bps QoQ | Contradicted |
| Input-cost buffer | "~480-day inventory base locks in pre-move input costs" | Materials ratio flat QoQ at 25.08% (YoY step-up is a Q1 base effect) | Played out |
| Launch-cost drag visible in P&L | "check whether launch costs have begun affecting P&L" | Other expenses +29.56% YoY / +20.64% QoQ; quantum undisclosed | Partially |
| Customs Rs.16 Cr order | appeal status watch | No provision booked; exceptional nil | Not observable in filing |
| FX tailwind | "translation tailwind for the 78%-international book" | Exchange line net gain Rs.9 Cr vs Rs.18 Cr year-ago (abs −9) | Partially |
| Zaynich CDSCO / biotech run-rate / tariff bucket | call questions | Filing silent — remain open for the call | Not observable in filing |
Management Guidance vs Delivery
| What management said | Where | What happened | Verdict |
|---|
| Zaynich full CDSCO approval by Q3 FY27 | Q4 FY26 earnings call | Not addressed in the Q2 filing — checkpoint falls in Q3 FY27 | Too Early |
| Zaynich launch: minor negative bottom-line impact, first 12–18 months | Q4 FY26 earnings call | Margin fell to 16.92% from 20.24% Q1 / 20.46% YoY; other expenses +29.56% YoY; quantum undisclosed — direction consistent; quantum unverifiable | On Track |
| Launch capex Rs.200–300 Cr over 3 years (primarily biologicals) | Q4 FY26 earnings call | H1 capex Rs.238 Cr (Rs.83 Cr PP&E/CWIP + Rs.155 Cr intangibles) | On Track |
| QIP deployment Rs.138.70 Cr unutilized by end-FY28 | CRISIL QIP monitoring report / Board resolution May 4, 2026 | Monitoring report not part of this filing; current investments fell Rs.412 → Rs.117 Cr | Too Early |
| Foviscu DCGI filing "in another two, three months" (from Jun 4, 2026) | Q4 FY26 earnings call | Not addressed in the Q2 filing | Too Early |
| "Scaling Growth" phase from 2026, margins holding the FY26 recovery | Q4 FY26 investor communication | Q2 EBITDA margin 16.92% < FY26's 18.68% and < Q1's 20.24%, on +23.91% revenue | Contradicted this quarter |
| Margin maximization via high-margin core portfolio / US generics exit | Q4 FY26 earnings call | Standalone margin 30.00% (vs 29.74% YoY); held-for-sale assets down 91 → 26 — standalone side | Confirmed |
| US entry only with Zaynich, operationally light, European-site supply | Q4 FY26 earnings call | Not addressed in the Q2 filing | Too Early |
Key Numbers, Quarter by Quarter
| Metric | Q1 FY26 | Q4 FY26 | Q1 FY27 | Q2 FY27 | FY26 |
|---|
| Consolidated EBITDA margin % | 13.7 | 20.3 | 20.2 | 16.92 | 18.68 |
| R&D spend Rs. Cr | 27 | 28 | 34 | not disclosed in filing | — |
| Biotech revenue | n/a | 23% of revenues (specialty: novel antibiotics & biosimilars) | Rs.236 Cr, +112% YoY | not disclosed in filing | — |
Key Investment Insights
Key Positives
- Consolidated revenue grew 23.91% YoY to Rs.969 Cr; H1 revenue up 24.87% YoY to Rs.1,898 Cr
- Standalone revenue grew 52.63% YoY to Rs.580 Cr with standalone EBITDA margin of 30.00% (vs 29.74% YoY)
- Standalone PAT grew 85.19% YoY to Rs.100 Cr; H1 standalone PAT up 68.29% to Rs.207 Cr
- H1 operating cash flow of Rs.237 Cr was 1.32x PAT, up from Rs.189 Cr in H1 FY26
- Employee cost ratio improved YoY from 23.79% to 20.74%; finance cost and D&A ratios also improved YoY
- Assets held-for-sale fell from Rs.91 Cr to Rs.26 Cr, indicating US generics exit progressing
- Capex of Rs.238 Cr in H1 is on track against the guided Rs.200-300 Cr three-year launch capex envelope
Risk Factors
- Consolidated EBITDA margin fell to 16.92% from 20.24% QoQ and 20.46% YoY, below FY26's 18.68%
- Consolidated PBT declined 19.78% YoY to Rs.73 Cr despite 23.91% revenue growth
- Other expenses rose 29.56% YoY and 20.64% QoQ, lifting their revenue ratio from 23.47% to 27.14%
- Overseas subsidiaries generated 40.14% of revenue but were loss-making (Rs.(10) Cr EBITDA, Rs.(27) Cr PBT), a Rs.21 Cr drag on owners' PAT
- Net debt rose Rs.207 Cr in H1 to Rs.1,703 Cr; FCF was Rs.(1) Cr in H1
- Rs.16 Cr customs adjudication order (Rs.5 Cr penalty + Rs.10 Cr redemption fine) under appeal with no provision visible in the P&L
Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.
Powered by Cofacto — AI research platform for Indian stocks, every claim cited from primary filings
Login Now