Nephrocare consolidated PAT swings to ₹33.5 Cr as finance costs collapse; margin eases

Nephrocare Health Services (NephroPlus) reported consolidated revenue of ₹303.4 Cr for Q2 FY27, up 23.5% YoY and 7.7% QoQ, ahead of the top end of management's standing 15-20% revenue CAGR guidance reiterated on the FY26 Q4 call. Consolidated PAT swung to a profit of ₹33.5 Cr from a loss of ₹9.5 Cr in the year-ago quarter (Q2 FY26) and was up 4.9% QoQ against ₹32.0 Cr in Q1 FY27; EPS came in at ₹3.34 versus a loss per share of ₹1.12 a year earlier. Standalone (India-only) PAT was ₹14.3 Cr on revenue of ₹176.6 Cr, up a slower 13.3% YoY — the overseas businesses are growing well ahead of the domestic franchise and widening the gap between standalone and consolidated growth rates. The YoY turnaround is almost entirely a finance-cost story rather than an operating one. Consolidated finance costs fell to ₹3.1 Cr from ₹45.0 Cr a year ago — a collapse consistent with IPO-linked deleveraging: the company used ₹136.0 Cr of its IPO proceeds to prepay borrowings (fully utilised as of this quarter, per its use-of-proceeds disclosure) and paid-up equity capital jumped roughly 5.5x around the December 2025 listing, implying pre-IPO instruments were converted to equity. Strip out finance costs and underlying operating margin actually eased, from about 17.8% of income a year ago and 16.2% last quarter to roughly 15.2% now — other expenses crept up as a share of revenue even as cost-of-materials and employee costs held steady, likely reflecting the cost of the overseas build-out. Growth itself is overseas-led: Philippines revenue rose 36.5% YoY to ₹104.7 Cr and Uzbekistan 39.6% YoY to ₹33.4 Cr, versus India's 10.9% YoY rise to ₹160.9 Cr. The Saudi Arabia joint venture remains a drag, with its share-of-loss widening to ₹3.9 Cr from ₹3.6 Cr last quarter. No Q2-specific street estimates were found (FY27 full-year consensus pegs revenue near ₹1,160 Cr and EPS ₹16.60, per sharpely.in, too broad for a quarterly read), and the company did not issue a results press release with management commentary alongside this filing, so there is no fresh management framing to reconcile against. On the corporate side, the Group signed ten Philippines Asset Transfer Agreements (~₹92.6 Cr) and a Kazakhstan SPA for Dialysis Center Almaty LLP (~₹11.3 Cr) during the quarter, with purchase price allocation still provisional; subsequently, on October 27, 2026, it closed an asset-transfer acquisition of JCM Health Summit Inc. in the Philippines. Separately, a ₹14.79 Cr tax demand against a subsidiary was declared invalid on November 2, 2026, removing a legal overhang. None of this changes the core read: revenue growth is running ahead of guidance and increasingly overseas-driven, but the headline profit turnaround reflects a lighter balance sheet post-IPO rather than improving unit economics, which actually slipped a touch both sequentially and year-on-year.