Astonea Labs Limited H1 PAT rises 153.3% as EBITDA margin expands

Astonea Labs Limited reported consolidated profit after tax of Rs 4.82 crore for H1 FY27 ended 30 September 2026, up 153.3% year on year, as revenue from operations rose 44.6% to Rs 95.86 crore and EBITDA margin expanded 550 basis points to 13.8%.

How did Astonea Labs perform in H1 FY27?

Astonea Labs increased revenue from operations to Rs 95.86 crore in H1 FY27, from Rs 66.29 crore in H1 FY26 and Rs 81.29 crore in H2 FY26. That represented 44.6% year-on-year growth and 17.9% growth over the preceding half year, while total income reached Rs 96.21 crore, including Rs 35 lakh of other income.

Profit after tax rose to Rs 4.82 crore from Rs 1.90 crore a year earlier and Rs 2.57 crore in H2 FY26. EBITDA, or earnings before interest, tax, depreciation and amortisation, increased 140.7% year on year to Rs 13.20 crore, compared with Rs 5.48 crore in H1 FY26 and Rs 8.55 crore in H2 FY26.

The half-year comparison is presented on a consolidated Indian Accounting Standards, or Ind AS, basis, with H1 FY26 restated under Ind AS. These were Astonea Labs' first half-year results prepared under Ind AS after voluntary adoption for the financial year beginning 1 April 2026, making the restated comparative figures the basis for the reported growth rates.

What drove Astonea Labs' margin expansion?

Astonea Labs said a larger share of sales from its own over-the-counter, or OTC, brands drove margin improvement in H1 FY27. Gross margin increased 1,086 basis points year on year to 37.6%, EBITDA margin rose 550 basis points to 13.8%, and profit-after-tax margin increased 216 basis points to 5.0%.

The improvement was more pronounced against H1 FY26 than against the immediately preceding H2 FY26. Gross margin was 38.7% in H2 FY26, 113 basis points above H1 FY27's 37.6%, but EBITDA margin rose 326 basis points from 10.5% and PAT margin increased 187 basis points from 3.2%.

Management said its OTC portfolio has been growing at around 5% month on month. It also said Young Fuel, an anti-ageing cream launched during H1 FY27, had made a good start, while tablet output capacity had increased 35% and the plant complied with revised Schedule M and World Health Organization Good Manufacturing Practices requirements.

What affected Astonea Labs' H1 operations?

Astonea Labs said five regulatory audits in September 2026 slowed plant operations and moved some dispatches into Q3 FY27. Inventory days were 83 at 30 September 2026, compared with 72 a year earlier, partly because stock was held back during those audits and was expected to ship in Q3.

A fire at the plant on 27 April 2026 also resulted in an exceptional loss of Rs 46 lakh in the half. Separately, the financial-results notes state that Astonea Labs lodged an insurance claim after substantial damage to its building, plant and machinery, inventories and other assets, with Rs 5.4993185 crore recognised as insurance-claim receivable pending final assessment and settlement.

The notes further state that Astonea Labs reversed input tax credit of Rs 84.49 lakh on inventories destroyed in the fire. Management was still reconciling certain tax-credit mismatches and unavailed or reversed credits at the reporting date, and said any resulting tax liability, interest or penalties would be recognised once that reconciliation was finalised.

How did Astonea Labs' debt and working capital change?

Astonea Labs had gross borrowings of 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 was Rs 72.19 crore, compared with Rs 67.30 crore six months earlier, resulting in debt to equity of 0.79 times versus 0.64 times at 31 March 2026.

Debt to EBITDA improved to 2.6 times from 3.1 times at 31 March 2026, based on last-12-month EBITDA of Rs 21.75 crore against FY26 EBITDA of Rs 14.03 crore. For the September measure, Astonea Labs defined the 12-month period as October 2025 to September 2026.

Net working-capital days were 107 at 30 September 2026, compared with 150 days a year earlier and 104 days at 31 March 2026. Receivable days declined to 101 from 146 year on year, while payable days declined to 77 from 100 and inventory days were unchanged from March at 83.

What is Astonea Labs targeting after H1 FY27?

Astonea Labs management targets FY27 revenue of at least Rs 215 crore, requiring about Rs 119 crore in H2 FY27 revenue, or 47% year-on-year growth from H2 FY26. Management also targets an EBITDA margin of 13% to 15%; H1 FY27's reported EBITDA margin was 13.8%.

The filing states a FY27 PAT-margin target of “56%”, while reporting a 5.0% PAT margin for H1 FY27 and saying its H1 margins were already within the stated ranges. The document does not explain that apparent inconsistency, so the disclosed wording does not establish a clear comparable PAT-margin target.

For FY28 and FY29, management targets revenue of at least Rs 300 crore and Rs 405 crore, respectively, describing this as about 40% compound annual growth from FY26. It expects growth from OTC brands in India and exports, and said it expects around 60 product registrations in Q1 FY28 after filing 95 dossiers in Nicaragua, Bolivia, Guatemala and Panama.

Conclusion

Astonea Labs' H1 FY27 results show profit rising faster than sales, with PAT up 153.3% to Rs 4.82 crore on 44.6% revenue growth to Rs 95.86 crore. Management attributes the margin movement primarily to a greater contribution from its own OTC brands, while the reported results also include an exceptional Rs 46 lakh fire-related loss.

The next operational test is whether September-delayed supplies move out in Q3 and support the roughly Rs 119 crore H2 FY27 revenue implied by management's Rs 215 crore full-year target. Investors will also have to watch final insurance-claim settlement after the 27 April fire, tax-credit reconciliation, and delivery against the debt-to-EBITDA ceiling of 3 times and debt-to-equity ceiling of 1 time stated by management.