Sudeep Pharma (SUDEEPPHRM) Q2 26/27 earnings summary

Executive summary

• Record Q2 FY27 revenue and EBITDA reflected PFN strength, favorable mix and improved operating efficiency despite elevated freight costs.

• H1 FY27 revenue rose 23% to INR 355 crore and EBITDA increased 29% to INR 128.1 crore.

Financial highlights

• Q2 revenue was INR 196.6991 crore, up 21% YoY; EBITDA reached INR 73.2 crore, up 32% YoY and 33% QoQ.

• Q2 PAT was INR 51.8111 crore versus INR 46.7782 crore YoY; growth trailed EBITDA amid lower other income and a higher effective tax rate.

• H1 PAT was INR 92.398 crore, up 18% YoY; Q2 EPS was INR 4.59 versus INR 4.20 and H1 EPS was INR 8.18 versus INR 7.05.

• Exports were ~65% of Q2 revenue and grew 24% YoY; domestic sales represented ~35%.

Outlook and guidance

• Specialty ingredients are expected to return to YoY growth in Q3 and Q4 on new contracts and approvals, excluding any restart of the fortified rice program; margins are expected to recover toward pre-Q2 levels.

• PFN margins are expected to sustain and consolidated margins to stay near current levels, with Nandesari ramp-up and battery project expenses weighing on the P&L.

• Nandesari commercial supplies are expected in H2 FY27; FY28 utilization target is 15%-20%, with ~75% optimum utilization expected over three to four years.

• Dahej battery materials commercial operations are targeted for April 2027; customer validation is expected to take three to six months, with binding offtake updates targeted in Q4.

• NSS is expected to be broadly flat in FY27, with improved growth in FY28 and a ~30% EBITDA margin target, subject to supply conditions.