Concord Biotech Limited (CONCORDBIO) Q2 FY27 Financial Results: PAT ₹58.4 & Revenue ₹257.5 Cr

Investor Takeaways

Overall Tone: Positive

Key Financial Highlights

What Changed

Revenue increased 26% YoY to ₹257.5 crores, up from ₹215.8 crores in Q1FY25 and ₹244.22 crores in Q3FY25, indicating sequential and annual growth momentum. PAT margin improved to 22.4% from 21.6% in the same quarter of the previous year, reflecting better cost management and operational efficiency. Gross profit margin rose to 78.9%, up from prior period levels, supporting higher profitability. Exports grew approximately 46% YoY, contributing significantly to top-line expansion. Segment-wise, API revenue was ₹121.0 crores (+12% YoY), while formulations revenue surged to ₹135.8 crores (+46% YoY), highlighting strong performance in the formulations segment. The company also achieved USFDA approvals for Mycophenolate Mofetil and Tofacitinib ANDAs, enhancing its global regulatory footprint. Additionally, it received an EcoVadis Silver Medal for sustainability and expanded regulatory approvals in Brazil, Kenya, and Uganda, strengthening its international presence.

Peer Comparison

The company trades at a lower P/E ratio compared to Sun Pharmaceutical and Divi's Laboratories, suggesting potentially more conservative valuation relative to peers. However, peer ROE and ROCE figures are not directly comparable due to missing or N/A data for CONCORDBIO. Market capitalization is significantly lower than Sun Pharmaceutical but comparable to Divi's Laboratories and Torrent Pharmaceuticals.

Risks & Concerns

Quarterly Trend

The current quarter’s revenue of ₹257.5 crores is lower than both Q2FY25 (₹310.18 Cr) and Q4FY24 (₹318.97 Cr), indicating seasonality or cyclicality in revenue. However, it is higher than Q3FY25 (₹244.22 Cr), suggesting improvement from the previous quarter. Net profit in Q1FY27 (₹58.4 Cr) is significantly lower than the profits reported in Q2FY25 (₹95.74 Cr) and Q4FY24 (₹95.02 Cr), though it is slightly higher than Q3FY25 (₹75.92 Cr). OPM in the current quarter is not provided, but prior quarters showed OPM between 37.66% and 44.06%, indicating that margin performance in the current quarter, while improved from Q1FY25, remains below the peaks seen in Q2FY25 and Q4FY24. The decline in net profit despite revenue growth may reflect higher expenses, investment in R&D, or one-time costs not detailed in the provided data. The company’s ability to sustain growth in formulations and exports will be critical to maintaining profitability in upcoming quarters.

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About Concord Biotech Limited (CONCORDBIO)

Healthcare · Pharmaceuticals · Listed on NSE

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