Astonea Labs H1 revenue rises 44.6%, FY27 target Rs 215 crore

Astonea Labs Limited reported H1 FY27 revenue from operations of Rs 95.86 crore, up 44.6% year on year, while management targeted at least Rs 215 crore for FY27. The 30 September 2026 consolidated result included EBITDA of Rs 13.20 crore, up 140.7%, and requires about Rs 119 crore of H2 FY27 revenue to meet the target.

How did Astonea Labs perform in H1 FY27?

Astonea Labs reported higher revenue, earnings before interest, tax, depreciation and amortisation (EBITDA), and profit after tax (PAT) for the half year ended 30 September 2026. Revenue from operations was Rs 95.86 crore, compared with Rs 66.29 crore in H1 FY26 and Rs 81.29 crore in H2 FY26, representing growth of 44.6% year on year and 17.9% half on half.

Astonea Labs' EBITDA rose 140.7% from H1 FY26 and 54.5% from H2 FY26 to Rs 13.20 crore. PAT increased 153.3% year on year and 87.7% half on half to Rs 4.82 crore. Total income was Rs 96.21 crore, including other income of Rs 35 lakh, against Rs 10 lakh in H1 FY26. The company stated that the figures are consolidated, include its share of profit from an associate and restate H1 FY26 under Indian Accounting Standards, or Ind AS.

Why did Astonea Labs' margins change in H1 FY27?

Astonea Labs said a larger share of sales from its own over-the-counter, or OTC, brands raised margins in H1 FY27. Gross margin increased by 1,086 basis points to 37.6% from 26.7% in H1 FY26, while EBITDA margin rose by 550 basis points to 13.8% from 8.3%. PAT margin increased by 216 basis points to 5.0% from 2.9%.

The comparison with H2 FY26 was different at the gross-profit level. Gross profit rose 14.5% to Rs 36.04 crore from Rs 31.48 crore, but gross margin declined 113 basis points from 38.7% in H2 FY26. EBITDA margin nevertheless increased by 326 basis points from 10.5%, and PAT margin increased by 187 basis points from 3.2%, alongside EBITDA growth of 54.5% and PAT growth of 87.7% against the preceding half.

Other income accounted for Rs 35 lakh of H1 FY27 EBITDA, compared with Rs 10 lakh a year earlier. The reported EBITDA margin therefore includes that other income, as disclosed in the management discussion. This treatment is relevant when comparing the 13.8% margin with the FY27 EBITDA-margin target of 13% to 15% set by management.

What affected Astonea Labs' operations and financial position?

Astonea Labs said five regulatory audits in September 2026 slowed plant activity and shifted some dispatches into Q3. It also recorded an exceptional loss of Rs 46 lakh after a fire at its plant on 27 April 2026. Management said inventory held back by the September audits would ship in Q3, making the timing of those dispatches relevant to the second-half revenue outcome.

Gross borrowings were Rs 57.15 crore at 30 September 2026, up from Rs 43.00 crore at 31 March 2026 and Rs 39.05 crore a year earlier. Net worth rose to Rs 72.19 crore from Rs 67.30 crore at 31 March 2026, resulting in debt to equity of 0.79 times, compared with 0.64 times six months earlier and 0.60 times a year earlier.

Debt to EBITDA for the last 12 months declined to 2.6 times at 30 September 2026 from 3.1 times at 31 March 2026. The relevant EBITDA base was Rs 21.75 crore for the 12 months from October 2025 to September 2026, compared with FY26 EBITDA of Rs 14.03 crore for the 31 March calculation. Management said it intends to keep last-12-month debt to EBITDA at or below 3 times and debt to equity at or below 1 time.

Working-capital indicators showed both improvement and inventory accumulation. Receivable days fell to 101 at 30 September 2026 from 146 a year earlier, while net working-capital days declined to 107 from 150. Inventory days increased to 83 from 72, partly because stock was held back during the September audits; inventory days were unchanged from 31 March 2026.

What does Astonea Labs need to deliver for its FY27 plan?

Astonea Labs management targets FY27 revenue of Rs 215 crore or more, implying about Rs 119 crore in H2 FY27 revenue after the Rs 95.86 crore reported in H1. That implied second-half amount is about 47% above the Rs 81.29 crore reported in H2 FY26. Management noted that H2 FY26 accounted for 55% of FY26 revenue and said delayed September supplies are scheduled for Q3.

Management also disclosed an FY27 EBITDA-margin target of 13% to 15% and a PAT-margin target of 56%. H1 FY27 EBITDA margin of 13.8% was within the stated EBITDA range, while H1 PAT margin was 5.0%. The filing describes these future statements as management estimates subject to risks outside its control, and says actual results may differ.

For FY28 and FY29, management targets revenue of Rs 300 crore or more and Rs 405 crore or more, respectively, describing the trajectory as about 40% compound annual growth from FY26. The stated growth drivers are OTC brands in India and exports. Management said the OTC portfolio has grown around 5% month on month, while Young Fuel, an anti-ageing cream launched in H1 FY27, had a good start.

Astonea Labs said tablet-output capacity has increased 35% and the plant is compliant with revised Schedule M and World Health Organization Good Manufacturing Practices. The company appointed distributors in Guatemala and Panama, taking its network to nine markets across Central America, South America and the Caribbean. It has filed 95 dossiers in Nicaragua, Bolivia, Guatemala and Panama, and management expects around 60 product registrations in Q1 FY28.

The board also approved proposed business transactions of up to Rs 12 crore with Longevity Science Private Limited during FY27, subject to applicable requirements. Astonea Labs proposes to subscribe to 51% of Longevity Science's share capital, which would make it a subsidiary once corporate, statutory and regulatory formalities are completed. The filing notes that Longevity Science was recently incorporated.

Conclusion

Astonea Labs combined 44.6% H1 FY27 revenue growth with faster EBITDA and PAT growth, taking EBITDA to Rs 13.20 crore and PAT to Rs 4.82 crore. Management attributed the year-on-year margin gains to a greater contribution from own OTC brands, while the comparison with H2 FY26 showed a lower gross margin but higher EBITDA and PAT margins. September audits and the Rs 46 lakh fire-related exceptional loss affected the half.

The next measurable test is whether Q3 dispatches delayed by the September audits help Astonea Labs reach the roughly Rs 119 crore of H2 FY27 revenue implied by management's Rs 215 crore target. Investors can also track the planned Q1 FY28 product registrations, the proposed 51% Longevity Science subscription, and whether borrowings remain within management's stated limits of 3 times debt to EBITDA and 1 time debt to equity.