GTBL revenue rose 17%, but H1 PAT fell 16% as costs rose

Gujarat Themis Biosyn Limited reported standalone H1 FY27 revenue of Rs 91.2 crore, up 16.7% year on year, but profit after tax fell 16.3% to Rs 19.5 crore as EBITDA margin declined 235 basis points and interest expense rose to Rs 8.1 crore in the half year ended September 30, 2026.

What drove GTBL’s H1 FY27 revenue growth?

GTBL’s standalone income from operations increased by Rs 13 crore to Rs 91.2 crore in H1 FY27 from Rs 78.2 crore in H1 FY26. Management attributed the 16.7% growth to volume momentum and a favourable shift in product mix towards active pharmaceutical ingredients, or APIs. Q2 FY27 revenue rose 12.1% year on year to Rs 47.5 crore.

The second quarter also produced a sequential increase in sales. Q2 FY27 revenue of Rs 47.5 crore was Rs 3.7 crore above Q1 FY27 revenue of Rs 43.8 crore, an 8.37% increase, and exceeded the Rs 44.2 crore reported in Q4 FY26. The company’s Q2 snapshot listed five brands or products.

Revenue growth did not translate proportionately into operating profit because total expenditure increased by Rs 9.3 crore to Rs 52.7 crore in H1 FY27 from Rs 43.4 crore a year earlier. Other cost rose by Rs 6.2 crore to Rs 29.6 crore, while employee cost increased by Rs 0.5 crore to Rs 8.5 crore.

Why did GTBL’s H1 FY27 profit fall despite higher revenue?

GTBL’s H1 FY27 profit after tax, or PAT, declined because higher depreciation and interest more than offset the Rs 3.6 crore increase in EBITDA, or earnings before interest, tax, depreciation and amortisation. EBITDA rose 10.5% to Rs 38.5 crore, while profit before tax declined 15.1% to Rs 26.2 crore and PAT fell to Rs 19.5 crore.

GTBL’s EBITDA margin was 42.2% in H1 FY27, compared with 44.6% in H1 FY26, a decline of 235 basis points. PAT margin fell more sharply, to 21.4% from 29.8%, or 841 basis points. Depreciation increased by Rs 3 crore to Rs 8 crore, and interest increased by Rs 8 crore to Rs 8.1 crore; other income rose by Rs 2.7 crore to Rs 3.8 crore.

Management said near-term profitability reflected commissioning of the new fermentation facility and acquisition-related financing costs. The facility was commissioned in Q2 FY27, and management expects revenue from higher capacity utilisation to become increasingly visible from Q4 FY27 onwards. That is management’s outlook, rather than a reported H1 outcome.

How did GTBL’s Q2 FY27 compare with Q1 and Q2 FY26?

GTBL recorded higher Q2 FY27 revenue on both a sequential and year-on-year basis, but lower EBITDA and PAT. Revenue reached Rs 47.5 crore, compared with Rs 43.8 crore in Q1 FY27 and Rs 42.3 crore in Q2 FY26. EBITDA was Rs 17.7 crore, down from Rs 20.8 crore sequentially and Rs 20.9 crore a year earlier.

The margin movement was similarly pronounced. Q2 FY27 EBITDA margin was 37.4%, against 47.5% in Q1 FY27 and 49.5% in Q2 FY26, declines of 1,012 and 1,210 basis points respectively. PAT was Rs 8.5 crore, compared with Rs 11.1 crore in Q1 FY27 and Rs 14.3 crore in Q2 FY26.

Q2 FY27 total expenditure was Rs 29.7 crore, up from Rs 23 crore in Q1 FY27 and Rs 21.4 crore in Q2 FY26. Other cost reached Rs 15.1 crore, compared with Rs 14.5 crore sequentially and Rs 11.2 crore a year earlier. Changes in inventory were an expense of Rs 3.9 crore after a Rs 3.9 crore reduction in Q1 FY27.

Below EBITDA, Q2 FY27 interest expense was Rs 6.4 crore, versus Rs 1.8 crore in Q1 FY27 and nil in Q2 FY26. Other income increased to Rs 3.7 crore from Rs 0.1 crore sequentially, but profit before tax still declined to Rs 11.1 crore from Rs 15.2 crore. Earnings per share were Rs 0.65, against Rs 1.02 in Q1 FY27 and Rs 1.31 in Q2 FY26.

How did MBJ affect GTBL’s consolidated H1 FY27 results?

GTBL’s consolidated H1 FY27 figures included only 13 days of MicroBioPharm Japan Co., Ltd. revenue following completion of its acquisition on September 18, 2026. Consolidated income from operations was Rs 93.7 crore, Rs 2.5 crore above standalone income, while consolidated EBITDA was Rs 19.9 crore and consolidated PAT was a loss of Rs 2.8 crore.

The presentation identified Rs 15.57 crore of unrealised foreign-currency translation losses, the partial-period consolidation and Rs 1.2 crore of earthquake-related operational expenses at MBJ as adverse consolidated impacts. In Q2 FY27, consolidated EBITDA was a loss of Rs 0.9 crore and consolidated PAT was a loss of Rs 13.8 crore, compared with standalone EBITDA of Rs 17.7 crore and PAT of Rs 8.5 crore.

GTBL acquired a 100% stake in MBJ through a wholly owned special-purpose vehicle in Japan for JPY 21.5 billion, stated as about Rs 1,300 crore. MBJ reported FY26 revenue of JPY 9.5 billion, stated as Rs 557 crore. The presentation describes MBJ as adding anti-infectives, fermentation, API and intermediate capabilities.

MBJ also brings technology and customer relationships that are not yet represented by a full reporting period in GTBL’s H1 FY27 consolidated figures. The presentation says MBJ serves six global pharmaceutical customers with relationships exceeding 20 years, with 40% of revenue from outside Japan. Its disclosed platforms include a proprietary P450 enzyme library, plasmid DNA, antibody-drug conjugate conjugation, and strain and process optimisation.

Conclusion

GTBL’s first-half results show a gap between sales growth and net-profit growth: revenue increased Rs 13 crore, while PAT decreased Rs 3.8 crore. The difference reflects a 235-basis-point decline in EBITDA margin, alongside depreciation of Rs 8 crore and interest expense of Rs 8.1 crore, even as revenue gained from volumes and API product mix.

The next reported test is management’s expectation that higher fermentation-facility utilisation and related revenue will become increasingly visible from Q4 FY27. GTBL is also integrating MBJ after the September 18, 2026 acquisition, while future consolidated results will show whether the 13-day consolidation period, Rs 15.57 crore foreign-exchange loss and Rs 1.2 crore earthquake-related expense remain non-recurring factors.