Ind-Swift Laboratories Limited has delivered a strong financial performance in Q2 FY27, with revenue surging 50.15% year-on-year to Rs 234.89 crore, operating EBITDA jumping nearly fivefold to Rs 42.33 crore and profit after tax (PAT) climbing 3.54 times to Rs 31.03 crore.

 

The pharmaceutical formulations company's sharp improvement in profitability was accompanied by a significant expansion in operating margins, with EBITDA margin rising to 18.02% from 5.46% in the corresponding quarter last year.

 

The performance reflects the benefits of the company's strategic transition from an active pharmaceutical ingredients (API) manufacturer to a finished dosage formulations (FDF) player, alongside the scaling up of its operations.

 

Its contract development and manufacturing organisation (CDMO) partnerships are also gaining traction and contributing more meaningfully to revenue, while the improved business mix is driving stronger margins.

 

Operational efficiencies provided a further boost to profitability. Raw material expenses declined to 45.15% of revenue in Q2 FY27 from 49.38% a year earlier, indicating better cost management.

 

Importantly, the earnings growth was driven by core business operations rather than non-operating income. Other income declined 35.95% to Rs 7.60 crore, yet profit before tax (PBT) surged 3.6 times to Rs 40.24 crore. Finance costs also fell 33.83% to Rs 1.33 crore, further strengthening the bottom line.

 

The company sustained its growth momentum on a sequential basis as well. Revenue increased 26.23% over Q1 FY27, rising from Rs 186.08 crore to Rs 234.89 crore, while operating EBITDA grew 27.02% from Rs 33.32 crore to Rs 42.33 crore. Operating EBITDA margin improved marginally from 17.91% to 18.02%.

 

The half-year performance was equally strong. For H1 FY27, revenue rose 35.79% year-on-year to Rs 420.97 crore, while operating EBITDA jumped 4.4 times to Rs 75.65 crore, with a margin of 17.97%. PAT climbed 3.3 times to Rs 55.47 crore.

 

The results underline the improving contribution of the company's formulations and CDMO businesses, with stronger operating leverage, a favourable business mix and tighter cost controls translating into substantial gains in profitability.