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

Executive summary

• Q1 FY27 consolidated revenue grew 2% year-on-year to INR 1,898 million, but declined 7% sequentially, with fundamentals remaining strong despite global disruptions.

• EBITDA decreased 10% year-on-year and 19% sequentially, with margins at 27%.

• PAT declined 5% year-on-year and 15% sequentially, with a PAT margin of 20%.

• Board approved a buyback of up to INR 697 million at a ceiling price of INR 500 per share via open market.

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

Financial highlights

• Q1 FY27 revenue was INR 1,898 million, up from INR 1,859.14 million in Q1 FY26, but down 7% sequentially due to sales reversals.

• EBITDA for Q1 FY27 stood at INR 510 million, down 10% year-on-year and 19% quarter-on-quarter; EBITDA margin was 27%.

• Profit after tax for Q1 FY27 was INR 386 million, a 5% year-on-year and 15% sequential decline; PAT margin at 20%.

• R&D expenditure was INR 90 million, about 5% of revenue, consistent with prior year.

• Q1 FY27 EPS at 3.31, down 7% year-on-year and 14% sequentially.

Outlook and guidance

• Management expects to achieve double-digit revenue growth for FY27, with Q1 impacted by timing of sales recognition.

• EBITDA margin is expected to recover to historical levels of around 30% for the full year.

• Focus on expanding animal nutrition, bio-catalysis, probiotics, and baking solutions.

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

• Anticipates improved cost trajectory and operational efficiency from Q2 onwards.