IOL Chemicals: consolidated PAT surges 90% YoY to ₹64.4 Cr as revenue jumps 37%, OPM expands

IOL Chemicals and Pharmaceuticals reported consolidated revenue of ₹756.26 Cr for Q1 FY27, up 37.1% YoY from ₹551.69 Cr and 22.1% QoQ from ₹619.45 Cr. Consolidated PAT came in at ₹64.40 Cr, up 89.8% YoY from ₹33.93 Cr and 21.1% QoQ from ₹53.16 Cr, with EPS at ₹2.19 versus ₹1.16 a year ago. There were no exceptional items in the current or comparison quarters, so the growth is entirely operating in nature — unlike FY26's full-year print, which carried an ₹11.21 Cr one-off charge. Operating margin expanded to 13.69% from 11.26% a year earlier (+243 bps YoY), though it eased from 14.93% in Q4 FY26 (-124 bps QoQ). Net margin followed the same pattern: 8.52% versus 6.07% YoY, and roughly flat against 8.56% in Q4. By segment, Pharmaceuticals remained the larger profit contributor (revenue ₹469.49 Cr, segment PBIT ₹68.81 Cr), but Chemicals did the heavy lifting on margin recovery — segment PBIT nearly tripled YoY to ₹17.32 Cr from ₹5.91 Cr on revenue of ₹364.96 Cr, lifting the segment's PBIT margin to 4.7% from 2.1%. The 37% YoY revenue growth runs well ahead of the "mid-to-high teens" annual pace management guided on the Q4 FY26 call (22 May 2026), and the 13.69% OPM is closing in on, but still short of, the 14–14.5% FY27 margin band the company targeted then. No Q1-specific street estimate could be located; the closest available read (Univest) pegs FY27 full-year consensus PAT growth at 12–18% — Q1's +90% YoY pace runs well ahead of that trajectory, though a single quarter isn't directly comparable to a full-year estimate. Standalone and consolidated numbers tell nearly identical stories this quarter (PAT ₹64.48 Cr vs ₹64.40 Cr, a 0.12% gap), the difference owing entirely to the first-time, auditor-flagged-immaterial consolidation of UK subsidiary IOL Pharmaxis, which began operations in April 2026. The board approved the results alongside routine filings this week (BRSR report, FY26 annual report, 39th AGM notice for 2 September 2026); no new capex or corporate action accompanied the print. With OPM still 35–80 bps below the FY27 target band and Chemical segment margins recovering off a low base, the next one to two quarters should clarify whether this run-rate holds or whether Q1's step-up partly reflects a favorable base effect against a soft year-ago chemical pricing environment.