RPG Life Sciences (RPGLIFE) Q2 26/27 earnings summary

Executive summary

• Q2 revenue rose 16.5% YoY to INR 211.6 crore, crossing INR 200 crore for the first time; adjusted EBITDA reached a record INR 50.1 crore.

• H1 revenue grew 16.2% to INR 407.3 crore; adjusted EBITDA rose 16.1% to INR 97.9 crore at a 24.0% margin.

• Consolidated reported PAT was INR 28.22 crore in Q2 and INR 58.79 crore in H1, down YoY; adjusted PAT grew 13.4% and 14.8%, respectively.

• Domestic formulations outpaced the market, international formulations returned to growth, and API expanded through acquisitions.

Financial highlights

• Q2 adjusted EBITDA rose 15.0% to INR 50.1 crore; adjusted PBT increased 11.3% to INR 42.5 crore and adjusted PAT rose 13.4% to INR 32.3 crore.

• H1 adjusted PBT rose 13.6% to INR 83.8 crore and adjusted PAT increased 14.8% to INR 62.9 crore.

• Q2 gross margin expanded 260 bps YoY; management cited pricing, product mix, cost savings, strategic inventory and currency effects.

• Adjusted Q2 results exclude INR 5.5 crore of restructuring and API acquisition-related costs; Q2 prior-year reported results included INR 11.22 crore of fire-insurance recovery income.

• Consolidated Q2 reported PBT before exceptional items was INR 37.04 crore and PAT INR 28.22 crore; H1 PAT was INR 58.79 crore.

Segment performance

• Domestic Formulations grew 11.6% to INR 145.7 crore in Q2 and 13.0% to INR 278.3 crore in H1; H1 volume growth was 6.8% versus market growth of 3.4%.

• Domestic Q2 growth would have been 15.2% excluding lower channel inventory and temporary supply and registration issues; management reported issues cleared in October.

• International Formulations increased 6.4% to INR 36.7 crore in Q2 and 7.0% to INR 71.7 crore in H1; sodium valproate grew 38% in South Africa and 17% in Australia.

• API revenue was INR 27.5 crore in Q2 and INR 54.1 crore in H1 on the organic basis; segment sales were INR 28.0 crore and INR 54.6 crore, including INR 0.5 crore from Actis Generics in H1.

• Naprosyn exceeded INR 100 crore in MAT secondary sales; H1 primary sales were INR 47.9 crore, up 13.6%.