Kwality Pharmaceuticals (539997) Q2 2026 earnings summary

Executive summary

• Consolidated revenue for H1 FY26 rose 32% year-over-year to ₹224 crore, driven by robust international sales and an expanding product portfolio.

• EBITDA increased 35% year-over-year to ₹50 crore, with margins improving to 22.5% from 22.0% in the previous quarter.

• Net profit for H1 FY26 was ₹26 crore, up from ₹17 crore in H1 FY25, supported by operational efficiencies and cost management.

• Strategic capex programs advanced, including expansion of Biologics and Oncology facilities and ongoing construction of a Hormone manufacturing facility.

• All capex and development investments in H1 FY26 were funded through internal accruals, generating a cash surplus of approximately ₹30 crore.

Financial highlights

• Standalone revenue for H1 FY26 was ₹222.79 crore, up from ₹170.11 crore in H1 FY25.

• Standalone net profit for H1 FY26 was ₹26.05 crore, compared to ₹16.85 crore in H1 FY25.

• Consolidated revenue for H1 FY26 was ₹222.53 crore, with consolidated net profit at ₹26.04 crore.

• Cash and cash equivalents increased to ₹3,039.82 lakh as of September 30, 2025, from ₹1,155.29 lakh as of March 31, 2025.

• Total assets (consolidated) as of September 30, 2025, were ₹47,764.69 lakh, with total equity at ₹29,010.95 lakh.

Outlook and guidance

• Q3 FY26 revenue is projected at around ₹140 crore, driven by higher order inflows and new product launches.

• Management is confident of exceeding the ₹500 crore revenue target for FY26, maintaining double-digit profitability and strong cash generation.