Shilpa Medicare shares traded 0.6% higher at ₹937.25 around 2 pm in Mumbai after the drugmaker reported a 79.5% year-on-year jump in consolidated net profit for the September quarter. Net earnings hit ₹79 crore compared with ₹44 crore in the corresponding quarter last year. Revenue surged 43% to ₹529 crore against ₹370 crore a year ago, according to the company's regulatory filing.
But operating profitability showed friction. EBITDA rose 30.3% to ₹142 crore from ₹109 crore a year earlier, yet EBITDA margins shrank 250 basis points to 27% from 29.5% in the prior-year period. Cost pressures and pipeline development overheads trimmed the spread.
| Metric | Q2 FY27 | Q2 FY26 | YoY Change |
|---|---|---|---|
| Revenue from Operations | ₹529 crore | ₹370 crore | +43.0% |
| Net Profit | ₹79 crore | ₹44 crore | +79.5% |
| EBITDA | ₹142 crore | ₹109 crore | +30.3% |
| EBITDA Margin | 27.0% | 29.5% | -250 bps |
Growth momentum now hinges on high-potency contracts. In its contract development and manufacturing organisation (CDMO) arm, commercial deliveries to a European client will start in the second half of FY27. Meanwhile, peptide demand remains strong. Shilpa Medicare is completing one of India's largest solid-phase synthesis installations to supply GLP-1 therapeutics and high-potency active pharmaceutical ingredients.
Its semaglutide drug master file stands ready for regulatory filing. The drugmaker remains among a narrow cohort of Indian suppliers equipped with both synthetic and semi-synthetic manufacturing pipelines. International additions followed quickly. A new US customer placed maiden orders in the polymer unit for execution by the second half of FY27, while commercial dispatches to a new Japanese customer will commence before the fiscal year closes.
Beyond active ingredients, finished dosage form launches will dictate margin recovery. Shilpa Medicare has entered an exclusive European partnership with Orion Corporation to serve as the development and supply partner for its Nivolumab biosimilar, pushing the company into institutional oncology markets across Europe.
"With strong first-half momentum, a maturing pipeline, and a sharpened strategic focus, we are well positioned to deliver a stronger FY27," said Managing Director Vishnukant Bhutada in the exchange statement.
The stock has shed 8.9% over the past month as traders booked profits across mid-cap pharma names. Yet institutional patience has paid off handsomely this calendar year—the counter is up 197.3% year-to-date. Commercial execution on European CDMO batches in the second half of FY27 represents the immediate operational checkpoint for market participants.