Unichem Labs Q2 FY26 Earnings Results

Unichem Laboratories Ltd is involved in pharmaceuticals in Generics, APIs and Contract Manufacturing (CMO) areas.

 

Q2 FY26 Earnings Results

• Revenue from Operations: ₹578.96 crore, up 9.9% QoQ from ₹526.60 crore in Q1 FY26, and up 14.1% YoY from ₹507.36 crore in Q2 FY25.​

• EBITDA (approx.): ₹87.15 crore, EBITDA margin at 15.05%, up from 12.65% in Q2 FY25.​

• Operating Profit (PBDIT, excl. Other Income): ₹66.18 crore, margin 11.43% vs 10.94% YoY.​

• Profit Before Tax (PBT): Loss of ₹10.82 crore, down from profit of ₹27.13 crore in Q2 FY25.​

• Profit After Tax (PAT): Loss of ₹11.89 crore, compared to a profit of ₹24.63 crore in Q2 FY25 and a loss of ₹10.47 crore in Q1 FY26.​

• PAT margin: -2.05%, sharply lower from +4.85% YoY, indicating profitability pressures.​

• EPS: Negative ₹1.69, compared to positive ₹3.48 in Q2 FY25.​

• Key items: Loss impacted by exceptional expenses (notably—a ₹58.26 crore provision related to the settlement of a European Commission fine).​

• Employee costs: ₹100.13 crore, marginally lower YoY.​

 

Management Commentary & Strategic Decisions

• Management noted that robust revenue growth was offset by higher costs, elevated interest expense, and the one-time exceptional item related to a legacy compliance settlement.​

• Focus areas include stabilizing operations, optimizing the portfolio, and disciplined cost management in the face of market and regulatory headwinds.​

• The company remains debt-light with a low net debt/equity of 0.14.​

• Stable promoter holding and history of 12.8% 5-year sales CAGR reinforce underlying business stability.​

• Ongoing investments in product pipeline and global reach are expected to lay the foundation for medium-term margin improvement and a return to profitability once exceptional costs normalize.​

 

 

Q1 FY26 Earnings Results

• Revenue from Operations: ₹526.60 crore, up 3.6% YoY from ₹508.55 crore in Q1 FY25, but down 10.3% QoQ.​

• EBITDA (approx.): ₹88.79 crore, margin 16.87% vs 13.94% YoY.​

• Profit Before Tax (PBT): Loss of ₹9.02 crore, improved from a ₹125.87 crore loss in Q4 FY25, but worse than a profit of ₹15 crore YoY.​

• Profit After Tax (PAT): Loss of ₹10.47 crore, compared to a profit of ₹2 crore in Q1 FY25.​

• EPS: Negative ₹1.49 (from positive ₹0.28 in Q1 FY25).​

• Margins improved sequentially despite the loss, reflecting early positive impact of efficiency measures.​

• Management noted significant improvement in sequential loss reduction and remains committed to cost controls and operational turnaround.

 

To view the company’s previous earnings and latest concall transcripts, click here  to visit the Alphastreet India news channel.