Evonile Pharma (500672) Q2 26/27 earnings summary

Executive summary

• Q2 marked the shift from a single-customer model to direct sales through an independent distribution and commercial platform; transition costs and lower sales weighed on results.

• Q2 revenue was ₹56.05 crore and net loss was ₹77.54 crore, including ₹68.26 crore of exceptional charges and other non-recurring costs.

• Priorities include completing the organizational build-out, restoring portfolio growth, establishing the appropriate cost base and reducing debt.

Financial highlights

• Q2 FY27 revenue from operations was ₹56.05 crore vs ₹90.33 crore, down 38% YoY; H1 revenue was ₹159.86 crore vs ₹177.88 crore, down 10%.

• Adjusted operating EBITDA was a ₹16.4 crore loss in Q2 vs ₹23.9 crore income; H1 was ₹18.5 crore income vs ₹51.1 crore. Operating EBITDA was a ₹31.8 crore Q2 loss and ₹3.1 crore H1 income.

• Q2 net loss was ₹77.54 crore vs net profit of ₹24.22 crore; H1 net loss was ₹45.33 crore vs net profit of ₹51.84 crore.

• H1 cost of goods sold rose 6% to ₹102.8 crore and employee expenses rose 80% to ₹19.1 crore; other expenses increased 3% to ₹19.5 crore.

• Q2 employee costs rose to ₹14 crore from ₹5 crore as the field force and corporate team were built; other expenses were ₹11 crore, nearly flat YoY excluding one-offs.

Outlook and guidance

• Full field-force build-out is targeted by Q4 FY27, with about 900 representatives planned, including ~300 for Minipress XL; employee and selling costs are expected to rise through H2.

• Full-portfolio revenue should begin reflecting from Q3; Q4 FY27 or Q1 FY28 is expected to show a stable annualized base, with quarterly revenue near ₹150 crore and annual revenue near ₹600 crore.

• Organic ambition is to double the stabilized base over five to six years; new products are expected from late Q4 or Q1 FY28 through brand extensions and products for existing specialist teams.

• A further ₹15 crore–₹20 crore of one-time costs may arise in Q3; costs are expected to stabilize by Q4. Finance costs are guided at up to ₹15 crore in Q3 and ₹10 crore–₹15 crore in Q4.