Balaxi Pharmaceuticals (BALAXI) Q2 25/26 earnings summary

Executive summary

• Q2 FY26 revenue declined 27% year-over-year to ₹56.17 crore due to softer demand, working capital pressure, and logistics delays.

• Gross profit margin remained robust above 48%, reflecting resilience in branded generics.

• Net profit dropped sharply to ₹0.21 crore from ₹4.59 crore last year, impacted by higher operational costs from a strategic shift to institutional and hospital markets.

• Board approved unaudited standalone and consolidated financial results for the quarter and half year ended September 30, 2025.

• Investment of up to $4 million approved in wholly owned subsidiary Balaxi Global FZCO, Dubai, to support operational and business expansion.

Financial highlights

• Q2 FY26 revenue: ₹56.17 crore (down 27.4% YoY); gross profit: ₹27.14 crore (down 18.3% YoY).

• Gross margin improved to 48.3% (up 540 bps YoY).

• EBITDA: ₹1.17 crore (down 88.9% YoY); EBITDA margin: 2.1% (down 1158 bps YoY).

• PAT: ₹0.21 crore (down 95.4% YoY); EPS: ₹0.04 (down 95.2% YoY).

• Standalone revenue from operations for H1 FY26 was ₹3,601.82 lakhs, up from ₹2,115.53 lakhs in H1 FY25; consolidated revenue for H1 FY26 was ₹12,691.74 lakhs, down from ₹14,300.38 lakhs in H1 FY25.

Outlook and guidance

• Near-term performance expected to remain challenged by market and operational headwinds.

• Investment in Balaxi Global FZCO aims to drive operational and business expansion, with completion expected by March 31, 2026.

• Successful manufacturing facility commissioning and regulatory progress position the company for improved integration, margin expansion, and long-term growth.

• Focus on expanding therapeutic coverage and entering new markets in Latin America, South-East Asia, and CIS regions.