CORONA Remedies Limited H1 revenue rises 22%, margin reaches 21.9%

CORONA Remedies Limited reported H1 FY27 revenue of Rs 863.6 crore, up 22.0% year on year, while earnings before interest, tax, depreciation and amortisation (EBITDA) increased 27.5% to Rs 189.1 crore. EBITDA margin rose to 21.9% from 20.9%, although higher depreciation and amortisation affected the Q2 FY27 profit after tax margin.

How did CORONA perform in H1 FY27?

CORONA increased revenue from operations by Rs 155.9 crore to Rs 863.6 crore in H1 FY27 from Rs 707.7 crore in H1 FY26. The 22.0% increase followed Q2 FY27 revenue growth of 22.2%, with quarterly revenue reaching Rs 441.2 crore compared with Rs 361.1 crore in Q2 FY26.

India contributed 97.1% of CORONA's total H1 FY27 revenue, while chronic and sub-chronic therapies accounted for about 72.1%. CORONA also improved its rank in the Indian pharmaceutical market to 26th in moving annual total (MAT) September 2026 from 27th in MAT March 2026, according to Pharmatrac.

Did CORONA's operating profitability improve?

CORONA's operating profitability improved in H1 FY27, as EBITDA rose by Rs 40.9 crore to Rs 189.1 crore and EBITDA margin increased by 100 basis points to 21.9%. Gross margin rose to 81.7% from 81.0%, while employee cost increased to Rs 246.3 crore from Rs 200.4 crore and other expenses rose to Rs 270.2 crore from Rs 224.6 crore.

The quarterly margin result was unchanged despite higher earnings. Q2 FY27 EBITDA increased 22.3% to Rs 96.0 crore from Rs 78.5 crore, but EBITDA margin remained at 21.7%; gross margin rose to 81.8% from 81.0%, while employee cost and other expenses increased to Rs 124.2 crore and Rs 140.5 crore, respectively.

Why did CORONA's Q2 FY27 PAT margin decline?

CORONA said Q2 FY27 profit after tax (PAT) margin declined because depreciation and amortisation increased for newly commissioned facilities and acquired brands. Depreciation and amortisation rose to Rs 15.1 crore from Rs 9.2 crore, while PAT increased 15.3% to Rs 60.3 crore and PAT margin fell to 13.7% from 14.5%.

The cumulative first-half effect was less marked, with H1 FY27 PAT margin unchanged at 13.9%. Depreciation and amortisation increased to Rs 28.3 crore from Rs 18.1 crore, finance cost rose to Rs 5.4 crore from Rs 3.9 crore, and profit before tax reached Rs 161.1 crore compared with Rs 130.5 crore.

CORONA reported annualised return on capital employed of 49.8% and annualised return on equity of 32.9% in H1 FY27. Earnings per share were Rs 19.7 and were not annualised, while total equity increased to Rs 805.1 crore at September 2026 from Rs 746.9 crore at March 2026.

What changed in CORONA's balance sheet and cash flow?

CORONA's total assets increased to Rs 1,246.7 crore at September 2026 from Rs 1,205.1 crore at March 2026. Property, plant and equipment rose by Rs 134.1 crore to Rs 425.2 crore, while capital work-in-progress declined to Rs 21.8 crore from Rs 143.1 crore.

Current assets increased to Rs 473.7 crore from Rs 348.3 crore, including inventories of Rs 170.7 crore and trade receivables of Rs 170.6 crore. Current borrowings fell to Rs 94.3 crore from Rs 142.9 crore; CORONA said these included an overdraft against fixed deposits, with fixed deposits of Rs 146.8 crore and overdraft of Rs 94.3 crore.

Cash generated from operations rose by Rs 10.3 crore to Rs 146.3 crore, but net cash from operating activities was Rs 112.7 crore compared with Rs 113.4 crore a year earlier. The result included a Rs 48.6 crore working-capital outflow in H1 FY27, compared with Rs 17.7 crore in H1 FY26, and net income taxes paid of Rs 33.5 crore versus Rs 22.6 crore.

What facilities and certifications featured in CORONA's update?

CORONA renewed European Union Good Manufacturing Practice (EU-GMP) certification for the oral solid dosage line at its Bhayla plant in May 2026. It inaugurated a hormone facility at Bhayla with EU-GMP certification in June 2026, a newly commissioned facility relevant to the higher depreciation and amortisation cited in the Q2 FY27 result.

In October 2026, CORONA received Brazilian health regulator ANVISA Good Manufacturing Practice certification for Bhayla's oral solid dosage and hormone manufacturing facilities. The presentation does not quantify revenue from these certifications or disclose a financial target linked to them, while India remained 97.1% of H1 FY27 revenue.

Conclusion

CORONA combined 22.0% H1 FY27 revenue growth with a 100-basis-point EBITDA margin increase, resulting in EBITDA growth of 27.5%, faster than revenue growth. H1 FY27 PAT margin held at 13.9%, whereas Q2 FY27 PAT margin declined to 13.7% as depreciation and amortisation increased following facility commissioning and brand acquisitions.

The next disclosed developments to watch are the contribution from the Bhayla hormone facility inaugurated in June 2026 and the implications of the ANVISA certification received in October 2026. CORONA's H1 FY27 working-capital outflow of Rs 48.6 crore, compared with Rs 17.7 crore a year earlier, is also relevant to future operating cash generation.