Kwality Pharma Q1FY27: consolidated PAT surges 115% YoY to ₹25.6 Cr, margins expand, guidance raised
PAT +115% YoY · revenue +45.6% · margins expanding
₹162.35 Cr
+45.6% YoY
₹25.62 Cr
+115% YoY
15.72%
+5.1pp YoY
₹24.69
Kwality Pharmaceuticals posted consolidated revenue of ₹162.35 Cr in Q1FY27, up 45.6% YoY from ₹111.48 Cr and up 3.3% QoQ from ₹157.11 Cr. Consolidated PAT rose to ₹25.62 Cr from ₹11.92 Cr a year ago (+115% YoY; +1.2% QoQ), with net margin expanding to 15.7% from 10.7% YoY. No exceptional items sit in either the current or year-ago quarter, so the growth is clean/organic rather than base-effect driven. Standalone tracks consolidated almost exactly this quarter (PAT ₹25.63 Cr, EPS ₹24.70 vs consolidated EPS ₹24.69) — the foreign subsidiary contributes negligibly.
Q1 FY-2027 vs prior quarters
The margin expansion is EBITDA-led: EBITDA rose to ₹41 Cr from ₹37 Cr YoY (+13%), with OPM widening to ~25.3% from 21.7% a year ago and 24.8% last quarter, which management attributes to operating leverage and a mix shift toward higher-margin regulated-market and oncology products rather than to lower input costs or other income (other income was flat at ₹0.62 Cr).
The stock went into the print at ₹2,851.45, up 9.1% over the past month of trading.
For context: this is the highest quarterly PAT in the last 6 quarters on our records; PAT has now risen for 4 consecutive quarters; revenue is at a 6-quarter high.
Management provided strong forward-looking guidance, projecting revenue of INR650-700 crores for FY27, with an aspiration to reach INR1,000 crores by FY29. EBITDA margins are expected to improve from 24% in FY26 to 26-27% in FY27, reaching 30% by FY29, driven by a shift towards higher-margin regulated markets and oncol
— This quarter: beat
There is no independent street coverage or consensus estimate available for this small-cap (~₹335 Cr market cap) name, so vs-street cannot be assessed; the only outside benchmark is management's own prior quarterly pacing guide of ₹150-160 Cr for Q1, which the ₹162.35 Cr print exceeds. Against the FY26-concall guidance of FY27 revenue ₹650-700 Cr and EBITDA margin 26-27%, this quarter's run-rate is tracking ahead — management used this print to raise full-year guidance to revenue ₹700+ Cr, EBITDA ₹189-196+ Cr (27-28%+ margin) and PAT ₹109+ Cr (~15.5%+ margin), i.e., the company itself signals the quarter beat its own plan. Operationally, the quarter's R&D output (13 bioequivalence studies completed toward a 40-molecule pipeline, filings live in 15+ countries) and 15+ new product registrations across Malaysia, Algeria, Peru and Mexico support the regulated-market push cited as the margin driver; CDSCO clearance for Pembrolizumab pre-clinical batches adds a second biologics candidate behind Erythropoietin, which management flagged in the prior concall as a long-term margin lever via the FY29 hormones/biologics revenue ambition. The Hormone facility remains on schedule for a November 2026 completion, the next concrete checkpoint against that plan.
W1
FY27 revenue run-rate against the newly raised ₹700+ Cr guidance — Q1 delivered ₹162.35 Cr, roughly 23% of the full-year target
W2
OPM trajectory toward management's 27-28%+ FY27 target from the current 25.3%
W3
Hormone manufacturing facility completion, targeted for November 2026, as the next milestone toward the ₹200 Cr incremental hormones/biologics revenue management is targeting by FY29
Figures converted from ₹ Lakh (source) to ₹ Cr by /100; no exceptional items in current or either comparison quarter (only FY26 full year carried a ₹82.94L exceptional item); consolidated total PAT ₹25.622 Cr splits to owners ₹25.6245 Cr and NCI -₹0.0022 Cr via foreign subsidiary Kwality Pharmaceuticals Africa Limitada (immaterial, ~₹0.0045 Cr quarterly loss per auditor note); standalone and consolidated are near-identical this quarter.