Unichem PAT turns positive YoY, but adjusted for one-offs profit is flat near ₹46 Cr

Unichem's consolidated revenue grew 10.6% YoY to ₹640.22 Cr (₹578.96 Cr a year ago) and edged up 1.2% QoQ from ₹632.62 Cr. Consolidated PAT came in at ₹22.22 Cr, reversing a ₹11.89 Cr loss in Q2 FY26 — a swing of ₹34.11 Cr — but fell 46.4% from Q1 FY27's ₹41.47 Cr. Basic EPS was ₹3.16 against a loss of ₹1.69/share a year ago and ₹5.89 in Q1. The YoY swing is driven almost entirely by a shrinking one-off charge, not an operating improvement. This quarter carries a ₹24.26 Cr exceptional provision for a UK litigation claim tied to subsidiary Niche Generics' Perindopril matter (Laboratories Servier/UK Health Authorities damages claim, note 8), versus a much larger ₹58.26 Cr exceptional charge a year ago for interest on the EU Commission's antitrust fine against Niche (now fully settled). Strip out both one-offs and adjusted PAT works out to roughly ₹46.5 Cr this quarter versus roughly ₹46.4 Cr a year ago — essentially flat YoY (+0.2% adjusted, against a reported loss-to-profit headline). On a QoQ basis adjusted PAT is actually up ~12% from Q1's clean ₹41.47 Cr (Q1 carried no exceptional items), so the reported 46% QoQ PAT decline is a function of this quarter's provision rather than weaker underlying trading. Margins confirm the same story: reported NPM was 3.39% (versus 6.40% in Q1 and -1.98% a year ago), while operating margin on a pre-exceptional (PBEIT) basis was ~11.6% this quarter against ~11.4% a year ago — flat, not expanding, once the one-offs are stripped out. Management has no formal guidance on record, so there is no guidance beat/miss to assess beyond the trend itself: a clean Q1 FY27 profit of ₹41.47 Cr followed by an adjusted ₹46.5 Cr this quarter. No Q2 FY27-specific street estimates could be located; brokerages covering the stock (ICICI Securities, Systematix, Emkay) have been modelling roughly 15-20% PAT growth for FY27 overall following the Q1 turnaround, but none published a quarter-specific number ahead of this print. Standalone (India) operations also swung to a small ₹1.49 Cr profit from a ₹39.93 Cr loss a year ago on revenue of ₹401.90 Cr (+12.6% YoY), but the bulk of consolidated earnings still comes from outside India — the US and UK (Niche Generics) units together carried ₹478.38 Cr of half-year consolidated revenue per the auditors' note, with only ₹0.40 Cr of quarterly PAT from that block, underscoring how thin margins remain at the overseas subsidiary. Two other developments sit alongside the print: the USFDA inspected the Goa facility in late September 2026 and raised five observations, not yet reflected in any provision; and the company won an appeal in September 2026 disallowing an ₹87 Cr tax penalty, a balance-sheet positive unconnected to this quarter's P&L exceptional items. Going into Q3 FY27, the question is whether adjusted PAT breaks out of the roughly ₹41-46 Cr band it has held for two straight quarters even as revenue grows at a high-single-to-low-double-digit clip, or whether underlying margin stays range-bound while one-off items keep swinging the reported headline.