Themis Medicare Q2 EBITDA turns positive, H1 loss widens

Themis Medicare Limited returned to operating profitability in Q2 FY27, reporting EBITDA of Rs 5.58 crore against a Rs 3.09 crore loss a year earlier, but Themis Medicare's H1 FY27 EBITDA loss widened to Rs 46.84 crore from Rs 13.17 crore as expenditure rose faster than revenue.

What drove Themis Medicare's return to operating profit in Q2 FY27?

Themis Medicare returned to operating profit because Q2 FY27 net revenue rose 15.1% year on year to Rs 89.74 crore while total expenditure increased 3.8% to Rs 84.17 crore, resulting in EBITDA, or earnings before interest, tax, depreciation and amortisation, of Rs 5.58 crore. EBITDA had been a Rs 3.09 crore loss in Q2 FY26, and the margin moved to 6.22% from negative 3.96%.

The Q2 result also marked a sharp sequential change from Q1 FY27, when Themis Medicare reported net revenue of Rs 86.96 crore and an EBITDA loss of Rs 52.42 crore. Revenue increased by Rs 2.78 crore quarter on quarter, while total expenditure declined by Rs 55.21 crore to Rs 84.17 crore. Management said inventory price adjustments and certain one-off expenses weighed on Q2 gross margin even as EBITDA turned positive.

Themis Medicare reported profit after tax, or PAT, of Rs 7.06 crore in Q2 FY27, versus a Rs 3.62 crore loss in Q2 FY26. Profit before tax, or PBT, was Rs 8.22 crore after Rs 4.14 crore of other income and Rs 3.17 crore as the share of profit or loss of associates and joint ventures. Finance cost declined to Rs 2.11 crore from Rs 2.76 crore a year earlier.

Why did Themis Medicare's H1 FY27 EBITDA loss widen?

Themis Medicare's H1 FY27 EBITDA loss widened because total expenditure rose 18.4% to Rs 223.54 crore while net revenue increased only 0.6% to Rs 176.70 crore. The EBITDA loss increased to Rs 46.84 crore from Rs 13.17 crore in H1 FY26, and the EBITDA margin moved to negative 26.51% from negative 7.50%.

Purchase of SIT rose to Rs 71.97 crore in H1 FY27 from Rs 39.90 crore a year earlier, while other expenses increased to Rs 86.46 crore from Rs 62.42 crore. Employee expenses fell 13.5% to Rs 43.07 crore from Rs 49.78 crore, but that reduction did not offset the higher purchase and other expense lines. Changes in inventory were negative Rs 13.75 crore, compared with positive Rs 8.10 crore in H1 FY26.

The quarterly figures show why the first-half operating result remained negative despite the Q2 recovery. Q2 FY27 EBITDA of Rs 5.58 crore followed a Q1 FY27 loss of Rs 52.42 crore, while H1 revenue of Rs 176.70 crore was close to Rs 175.57 crore a year earlier. Management said Q2 reflected inventory-pricing and cost-structure optimisation, productivity measures and operational efficiencies.

How did Themis Medicare report H1 FY27 PAT with an operating loss?

Themis Medicare reported H1 FY27 PAT of Rs 31.67 crore despite the Rs 46.84 crore EBITDA loss principally because it booked Rs 92.95 crore of profit on sale of shares in Q1 FY27. The gain was absent in H1 FY26 and Q2 FY27. It helped lift H1 PBT to Rs 46.81 crore, compared with a Rs 17.52 crore PBT loss in the prior-year half.

After tax of Rs 15.14 crore, Themis Medicare recorded a H1 FY27 PAT margin of 17.92% and basic earnings per share, or EPS, of Rs 3.44. H1 FY26 had a PAT loss of Rs 17.84 crore and negative EPS of Rs 1.94. Other income was Rs 5.13 crore, the share of profit or loss of associates and joint ventures was Rs 5.76 crore, depreciation was Rs 5.10 crore and finance cost was Rs 5.08 crore.

The presentation defines EBITDA as excluding other income, and the Rs 92.95 crore gain on sale of shares appears below the operating measure. That item was therefore the principal factor separating the H1 EBITDA loss from reported PAT of Rs 31.67 crore. In Q2 FY27, when no share-sale gain was recorded, Themis Medicare still reported PAT of Rs 7.06 crore.

Which Themis Medicare businesses and balance-sheet changes matter next?

Themis Medicare said its active pharmaceutical ingredient, or API, business rebounded 71% year on year to Rs 20 crore in Q2 FY27, while Formulations revenue was Rs 69 crore. Management said it was engaging prospective overseas customers for new API molecules and expected to build on the API recovery through the rest of FY27. Within Formulations, management said the Ortho and Gynecology Division doubled revenue and the Critical Care Division doubled PBT, without disclosing divisional amounts.

Themis Medicare has three manufacturing facilities in India, comprising one Formulations site and two API sites, and exports to more than 44 countries, according to the company overview. Management identified improved clinic effectiveness, targeted doctor outreach, operational efficiencies and a stronger Hospital and API presence as priorities. It also said Themisal Gel was building month-on-month momentum in the Critical Care Division during Q2 FY27.

At September 30, 2026, short-term borrowings were Rs 56.19 crore, down from Rs 78.23 crore at March 31, 2026, while long-term borrowings were Rs 21.44 crore against Rs 21.86 crore. Inventories increased to Rs 102.92 crore from Rs 81.09 crore, whereas trade receivables declined to Rs 154.95 crore from Rs 178.12 crore. Cash and cash equivalents rose to Rs 15.94 crore from Rs 4.54 crore over the same period.

Conclusion

Themis Medicare's Q2 FY27 return to EBITDA of Rs 5.58 crore shows that the operating result improved materially from the Rs 52.42 crore Q1 loss and the Rs 3.09 crore loss a year earlier. The H1 picture nonetheless remained affected by a Rs 34.80 crore rise in expenditure against only Rs 1.13 crore of revenue growth, while the reported Rs 31.67 crore PAT was principally supported by the Rs 92.95 crore gain on sale of shares.

The next reported quarter will show whether Q2 API revenue of Rs 20 crore and Formulations revenue of Rs 69 crore can be sustained. Management's disclosed plan centres on inventory-pricing optimisation, disciplined costs, stronger field productivity and engagement with overseas customers for new API molecules, with no timing or revenue contribution disclosed for those prospective customers.