IOL Chemicals: consolidated PAT surges 90% YoY to ₹64.4 Cr as revenue jumps 37%, OPM expands
PAT +89.8% YoY · revenue +37.1% · margins expanding
₹756.26 Cr
+37.1% YoY
₹64.4 Cr
+89.8% YoY
8.42%
+2.3pp YoY
₹2.19
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.
Q1 FY-2027 vs prior quarters
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 stock went into the print at ₹172.96, up 1.1% over the past month of trading.
For context: this is the highest quarterly PAT in the last 6 quarters on our records; revenue is at a 6-quarter high.
Management provided a confident outlook for sustained growth, targeting mid-to-high teens revenue growth annually and an improvement in EBITDA margins to 14%-14.5% for FY27. They are also investing in capacity expansion and operational improvements, with a significant greenfield project expected to take shape over the
— This quarter: beat
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.
W1
OPM trajectory toward management's 14-14.5% FY27 target band — currently at 13.69%, needs further expansion
W2
Chemical segment margin recovery sustainability — PBIT margin rose to 4.7% from 2.1% YoY; watch through H2 FY27 alongside the guided ₹1,200-1,400 Cr greenfield capex
W3
Non-Ibuprofen portfolio mix shift, per management's stated FY27 strategy — no disclosed number this quarter, watch for concall commentary