SMS Pharma Q2 FY27: PAT +57% YoY to ₹39.9 Cr on consolidated basis, margins expand

SMS Pharmaceuticals' consolidated PAT (net profit after tax plus share of associate profit) rose 57.4% YoY to ₹39.85 Cr from ₹25.31 Cr in Q2 FY26, on revenue from operations of ₹316.09 Cr, up 30.4% YoY from ₹242.43 Cr. Standalone PAT was ₹39.13 Cr (EPS ₹4.18) against consolidated EPS of ₹4.26. Sequentially, both revenue (+52.7% QoQ) and PAT (+90.6% QoQ) jumped sharply off a comparatively soft Q1 FY27 base (₹206.96 Cr revenue, ₹20.91 Cr PAT) — a volume-driven swing typical of API/bulk-drug order execution rather than a seasonal effect, so the YoY read is the one that should anchor the verdict. Margins expanded on both counts: OPM (EBITDA on revenue from operations, excluding other income) rose to 21.40% from 19.95% a year ago and 19.79% last quarter; NPM (PAT/total income) rose to 12.56% from 10.38% YoY. The main driver was operating leverage — manufacturing expenses eased to 7.85% of revenue from 10.61% a year ago — even as employee costs ticked up modestly (8.62% vs 7.94% of revenue) ahead of the company's capacity and peptides/CDMO build-out. Finance cost was flat YoY in absolute terms (₹573.57 Cr vs ₹573.62 Cr) despite the much higher revenue base, further aiding the margin print. No street estimates for this quarter were found in a web search, so vsStreet is unknown — SMS Pharma does not appear to carry formal sell-side coverage with published quarterly previews. Against management's own FY27 guidance (15% revenue growth, improving on FY26's ~20% OPM, from the prior concall), the company is tracking ahead: H1 FY27 consolidated revenue is up 19.3% YoY to ₹523.05 Cr against the 15% full-year target, and Q2 OPM of 21.40% is already above the FY26 benchmark the company said it wanted to improve on. No management press release accompanied this filing, so there is no fresh quarter-specific commentary to cross-check against the print. Two corporate developments sit around the result but outside it: the company advanced a ₹50 Cr inter-company loan to subsidiary SMS Peptides on October 30, 2026 (which itself posted a ₹0.91 Cr net loss for the quarter) — consistent with the guided backward-integration/peptides push — and on October 31, 2026 two income-tax appellate orders were issued on the same day, one dismissing an appeal and another vacating a ₹45.63 Cr demand; both post-date the September quarter close and are not reflected in these numbers. Going into Q3, the key markers are whether the sharp QoQ volume jump sustains or normalizes, and whether the Peptides investment starts showing up in consolidated numbers.