IOL Chemicals and Pharmaceuticals Limited PAT More Than Doubles

IOL Chemicals and Pharmaceuticals Limited reported its highest-ever quarterly revenue, EBITDA and profit after tax in Q2 FY27, with standalone revenue rising 40.1% year on year to ₹795.0 crore. EBITDA increased 79.6% to ₹114.9 crore, while PAT more than doubled to ₹65.0 crore for the quarter ended September 30, 2026.

What did IOL report for Q2 FY27?

IOL reported record standalone financial performance for the September 2026 quarter, led by higher revenue and improved operating profitability. Revenue from operations rose from ₹567.5 crore in Q2 FY26 to ₹795.0 crore in Q2 FY27, an increase of 40.1%.

Operating performance improved faster than sales. EBITDA increased from ₹64.0 crore a year earlier to ₹114.9 crore, representing growth of 79.6%. The EBITDA margin expanded to 14.4% from 11.1%, an improvement of 321 basis points.

Profit after tax rose 116.8% year on year to ₹65.0 crore, compared with ₹30.0 crore in Q2 FY26. PAT margin improved to 8.1% from 5.2%, an expansion of 290 basis points. The company announced the unaudited quarterly and half-yearly results on October 30, 2026.

Which business segments supported IOL's growth?

IOL's pharmaceuticals and chemicals businesses both recorded higher revenue and segment profitability in Q2 FY27. Pharmaceuticals revenue rose to ₹472.8 crore from ₹336.4 crore in Q2 FY26, while segment EBIT increased to ₹68.1 crore from ₹35.5 crore.

The pharmaceuticals business therefore accounted for a substantial part of the company's quarterly revenue increase. Its segment EBIT growth was also stronger than revenue growth, consistent with the improvement reported in company-level operating margins.

The chemicals business recorded revenue, net of intersegment sales, of ₹322.3 crore in Q2 FY27, compared with ₹231.2 crore in the corresponding prior-year quarter. Chemicals segment EBIT increased to ₹23.2 crore from ₹5.1 crore.

The contribution from both segments is important because the company reported growth in its diversified portfolio rather than relying on a single reported business line. The results supplied do not provide product-level pricing, volumes, or a detailed explanation of the factors behind the segment-level margin movement.

How did IOL perform in the first half of FY27?

IOL carried its quarterly momentum into the first half, reporting 38.6% growth in standalone revenue from operations. H1 FY27 revenue reached ₹1,551.3 crore, compared with ₹1,119.2 crore in H1 FY26.

First-half PAT rose 102.5% to ₹129.5 crore from ₹64.0 crore a year earlier. The first-half figures indicate that the stronger Q2 performance followed a higher-revenue and higher-profitability first quarter rather than being limited to one reporting period.

The company reported H1 EBITDA margin of 14.5%, compared with 11.8% in H1 FY26. PAT margin for the half year was 8.3%, against 5.6% in the prior-year period. These measures show that profit growth outpaced revenue growth over the six months.

Why do the Q2 margins matter for investors?

IOL's margin expansion matters because EBITDA increased 79.6% despite revenue growing at a lower rate of 40.1%. The 321-basis-point rise in EBITDA margin shows that the company retained a greater share of quarterly revenue as operating earnings than it did in Q2 FY26.

PAT grew faster still, at 116.8%, and the PAT margin rose by 290 basis points. For investors, these reported figures provide the clearest measure of the quarter's improved profitability, although they do not by themselves establish whether the margin level will continue in subsequent quarters.

The company has stated revenue growth guidance of more than 25% for FY26-27, an EBITDA margin target of 14%-15%, and an export contribution target of 25%-30% by FY26-27. Q2 EBITDA margin of 14.4% was within the stated margin target range.

IOL is scheduled to hold an analyst and investor conference call on November 2, 2026, at 11:30 AM IST to discuss the Q2 and H1 FY27 results. The supplied material notes that an earnings-call transcript for the quarter had not been published, so the reported figures are based on the investor presentation and financial results rather than subsequent management commentary.

Conclusion

IOL delivered record Q2 FY27 revenue, EBITDA and PAT, with revenue reaching ₹795.0 crore and PAT rising to ₹65.0 crore. Growth in both pharmaceuticals and chemicals, alongside higher reported operating and net profit margins, supported the improvement in quarterly and half-year financial performance.

The next disclosed event is the November 2 analyst and investor call, where market participants will look for management's discussion of Q2 performance and outlook. IOL's stated revenue growth, export contribution and EBITDA margin targets remain the key disclosed benchmarks for assessing progress through the remainder of FY27.