Sudarshan Pharma first-half EBITDA margin reaches 10.1%

Sudarshan Pharma Industries Limited reported revenue from operations of Rs 391.39 crore for September 2026, with earnings before interest, tax, depreciation and amortisation (EBITDA) of Rs 39.63 crore and an EBITDA margin of 10.13%, compared with 7.42% in September 2025. The margin expansion accompanied higher gross profit and profit after tax, while borrowings and working-capital balances also increased.

How did Sudarshan Pharma's first-half earnings change?

Sudarshan Pharma increased revenue, EBITDA and profit after tax in September 2026 versus September 2025. Revenue from operations rose to Rs 391.39 crore from Rs 314.13 crore, EBITDA increased to Rs 39.63 crore from Rs 23.32 crore, and profit after tax reached Rs 13.39 crore from Rs 7.83 crore. Profit before tax was Rs 18.31 crore, compared with Rs 9.64 crore a year earlier.

The increase in gross profit of Rs 25.20 crore exceeded the Rs 16.31 crore increase in EBITDA, indicating that changes below gross profit, including operating costs not separately shown in the presentation's September table, absorbed part of the additional gross profit. Finance cost rose by Rs 6.66 crore to Rs 18.56 crore, while depreciation increased by Rs 0.98 crore to Rs 2.76 crore. Other income was broadly stable at Rs 3.15 crore versus Rs 3.07 crore.

Why did Sudarshan Pharma's margins improve?

Sudarshan Pharma's reported margins improved at gross-profit, EBITDA, pre-tax and post-tax levels in September 2026. Gross profit margin rose 4.39 percentage points to 14.77% from 10.38%, while EBITDA margin rose 2.71 percentage points to 10.13% from 7.42%. Profit before tax margin increased to 4.68% from 3.07%, and profit after tax margin increased to 3.42% from 2.49%.

The underlying cost lines moved differently from revenue. Purchases of stock-in-trade rose to Rs 360.86 crore from Rs 310.71 crore, while the change in inventories of finished goods and work in progress was negative Rs 42.50 crore, compared with negative Rs 34.91 crore. Cost of material consumed and other direct costs increased to Rs 15.24 crore from Rs 5.73 crore. These reported inputs resulted in gross profit of Rs 57.80 crore for September 2026.

The first-half EBITDA margin also exceeded the 8.54% margin reported for the audited year ended March 2026. First-half profit after tax margin of 3.42% was marginally above the full-year 3.32%, while gross profit margin of 14.77% was above the March 2026 full-year level of 11.90%. The comparison shows that the September 2026 period combined revenue growth with higher reported margins than both the prior first half and the preceding full year.

What changed in Sudarshan Pharma's borrowings and working capital?

Sudarshan Pharma's balance sheet at March 31, 2026 showed higher borrowings, inventories and trade receivables than a year earlier. Short-term borrowings were Rs 255.11 crore, up from Rs 160.27 crore at March 31, 2025, and long-term borrowings rose to Rs 38.37 crore from Rs 10.46 crore. Together, reported borrowings increased by Rs 122.75 crore to Rs 293.48 crore.

Inventories increased by Rs 78.26 crore and trade receivables by Rs 73.18 crore over the year to March 2026, a combined increase of Rs 151.44 crore. Trade payables also rose by Rs 95.89 crore to Rs 187.72 crore. Cash and cash equivalents were Rs 1.13 crore at March 31, 2026, compared with Rs 0.55 crore a year earlier, while total assets rose to Rs 641.75 crore from Rs 402.41 crore.

How does Sudarshan Pharma's full-year performance compare?

Sudarshan Pharma reported Rs 703.06 crore in revenue from operations and Rs 23.30 crore in profit for the year ended March 31, 2026, compared with Rs 505.05 crore and Rs 15.88 crore respectively in the year ended March 31, 2025. Total income, including other income, rose to Rs 717.77 crore from Rs 507.57 crore, while total expenses increased to Rs 681.23 crore from Rs 483.12 crore.

The March 2026 result was prepared under Indian Accounting Standards, or Ind AS, as was March 2025; March 2024 was reported under Indian Generally Accepted Accounting Principles, or IGAAP. Revenue was Rs 463.54 crore in March 2024, and profit for the year before adjustment was Rs 11.46 crore. Because the presentation identifies different accounting bases for March 2024 and the two later years, the directly like-for-like accounting comparison is between March 2026 and March 2025.

The presentation also reports an expansion in non-current operating assets at March 2026. Property, plant, equipment and intangible assets were Rs 96.03 crore, compared with Rs 29.91 crore in March 2025. Long-term loans and advances rose to Rs 31.38 crore from Rs 4.56 crore, whereas non-current investments declined to Rs 11.52 crore from Rs 28.84 crore.

Conclusion

Sudarshan Pharma's September 2026 first-half figures show a higher reported revenue base of Rs 391.39 crore alongside a 10.13% EBITDA margin, up 2.71 percentage points from September 2025. Gross profit margin rose 4.39 percentage points to 14.77%, and profit after tax increased to Rs 13.39 crore. Finance cost also increased to Rs 18.56 crore as the March 2026 balance sheet recorded Rs 293.48 crore of combined borrowings.

The next issue to watch is whether inventories of Rs 218.74 crore and receivables of Rs 233.34 crore change alongside cash and borrowings after March 2026. The presentation also lists new chemical, pharmaceutical and oncology active pharmaceutical ingredient products, as well as export avenues including Nepal, Taiwan, Bangladesh, Qatar and Saudi Arabia, without providing sales targets or timing for their contribution.