Evonile Pharma (ex-Novartis India) swings to ₹77.5 Cr standalone loss on customer exit

Evonile Pharma Limited (formerly Novartis India Limited) reported a standalone net loss of ₹77.5 Cr for Q2 FY27 (quarter ended September 30, 2026), reversing from a profit of ₹32.2 Cr in Q1 FY27 and ₹24.2 Cr in the year-ago quarter. Revenue from operations fell to ₹56.1 Cr, down ~38% YoY from ₹90.3 Cr and ~46% QoQ from ₹103.8 Cr. The loss was amplified by a ₹68.3 Cr exceptional charge, but even stripping that out the company posted a pre-tax operating loss of ₹32.8 Cr — the revenue decline itself, not just the one-off, pushed the quarter into the red. No analyst consensus or street estimates could be located for this transition quarter, and with no prior formal guidance on record from management or in our database, there is no beat/miss/met framing to apply here; vsGuidance and vsStreet are marked unknown.

The exceptional charge comprises ₹61.0 Cr tied to the termination of an exclusive distribution agreement with a major customer (effective September 30, 2026) and associated inventory purchase arrangements, plus ₹7.3 Cr for writing off import licences invalidated by the company's name change. Per the filing's segment note, that terminated customer accounted for over 10% of revenue in every comparison quarter shown except this one, confirming the hit is structural, not seasonal. NPM and OPM, which sat in the 24-34% range over the last two comparison quarters, collapsed to deeply negative this quarter on both a reported and pre-exceptional basis — this is a swing to loss, not a margin trim.

The stock went into the print at ₹1,719.85, down 12.2% over the past month of trading.

The quarter capped a control change that began in February 2026, when Novartis AG sold its 70.68% stake to a WaveRise Investments-ChrysCapital-Two Infinity Partners consortium; the company was renamed from Novartis India to Evonile Pharma in September 2026, and new leadership — Dr. Vikas Gupta as MD & CEO and Bhagwat Singh Deora as CFO — took charge effective July 29, 2026. During the quarter the company also capitalised ~₹1,290 Cr of intangible assets for the Minipress cardiology/BP brand rights acquired from Pfizer, and signed an exclusive promotion and distribution deal with Novartis Healthcare Private Limited for two ophthalmology (retina) products, marking its entry into that category. These are forward-positioning moves rather than drivers of this quarter's reported numbers — the Pfizer brand's revenue contribution has not yet shown up — but they explain why borrowings rose to ₹796 Cr (from zero at FY26-end) and why ₹611 Cr of fixed deposits were liquidated (bank balances fell from ₹615 Cr to ₹4 Cr) to help fund the ₹1,313 Cr half-year capex outflow; cash and equivalents itself actually rose to ₹248 Cr (from ₹52.5 Cr) as financing inflows outpaced the capex spend. The regulatory filing carries no management commentary or press release on the quarter's performance beyond the mandated disclosure notes.