Advanced Enzyme Technologies (ADVENZYMES) Q1 26/27 earnings summary

Executive summary

• Q1 FY27 consolidated revenue grew 2% year-over-year to INR 1,898 million, but declined 7% sequentially, impacted by an additional INR 100 million sales reversal due to revenue recognition timing.

• EBITDA declined 10% year-over-year and 19% quarter-on-quarter to INR 510 million, with margins at 27%.

• PAT was INR 386 million, down 5% year-over-year and 15% sequentially, with a PAT margin of 20%.

• Board approved a buyback of up to 1,394,000 equity shares (1.24% of paid-up capital) at a price not exceeding INR 500 per share, totaling up to INR 697 million.

• Acquisition of the remaining 4.28% stake in JC Biotech, making it a wholly owned subsidiary.

Financial highlights

• Q1 FY27 consolidated revenue: INR 1,898 million (+2% YoY, -7% QoQ); EBITDA: INR 510 million (-10% YoY, -19% QoQ), margin at 27%; PAT: INR 386 million (-5% YoY, -15% QoQ), margin at 20%.

• FY26 revenue grew 17% YoY to INR 7,458 million; EBITDA up 18% to INR 2,291 million; PAT up 30% to INR 1,736 million, margin at 19%.

• R&D spend: INR 90 million, about 5% of revenue.

• Working capital cycle: 125-138 days; inventory at INR 190 crore, receivables at INR 131 crore.

• Q1 FY27 EPS at 3.31, down 7% YoY and 14% sequentially.

Outlook and guidance

• Management expects to achieve double-digit revenue growth for FY27, with margin recovery to historical 30% EBITDA levels.

• Cost pressures from energy and raw materials are expected to ease, improving operational efficiency.

• Growth to be driven by both existing and new products, with a focus on food, animal feed, biocatalyst, and detergent sectors.

• Plans to broaden geographical reach, strengthen distribution, and invest in R&D and strategic partnerships.

• Additional investment in ANPL is intended to support growth in the nutrition and wellness segment.