Unichem Laboratories Q1 FY27: Profit Turnaround, Stock +18%

Stock jumps after Q1 print

Unichem Laboratories shares rallied sharply on Tuesday after the company reported its quarterly results. The stock surged as much as 17.79% to ₹598.35 on the BSE, reflecting a strong positive reaction to the earnings turnaround. Later in the session, at 2:10 PM, the stock was still trading 13.98% higher at ₹578.95. The move came after the company reported a return to profit on a year-on-year basis and a jump in operating profitability. The results also highlighted improved margins and higher revenue from operations.

Profit swings from loss to profit

Unichem Laboratories reported a net profit of ₹41.47 crore in the first quarter of FY27, compared with a net loss of ₹10.47 crore in the year-ago quarter. The company had posted a net profit of ₹10.91 crore in the March quarter, indicating sequential improvement as well. In a separate disclosure, the company described the same quarter as a consolidated net profit of ₹41.47 crore for the quarter ended June 30, 2026, reversing a loss recorded in the corresponding quarter of FY25. While the naming convention in the shared data varies across excerpts, the core point remained consistent: profitability improved materially versus the year-ago period.

Revenue rises 20.1% year-on-year

Revenue from operations in Q1 rose 20.1% to ₹632.62 crore from ₹526.60 crore, year-on-year. The company attributed growth to strong performance in international markets, with particular mention of its UK and US subsidiaries. The provided data also included annual figures, with “year ended March 2026” revenue from operations shown at ₹2,201.85 crore and total income at ₹2,264.91 crore. Separately, the standalone numbers indicated revenue from operations of ₹366.27 crore in the quarter, down from ₹384.25 crore in the comparable period. This points to the consolidated improvement being supported by non-standalone components, based on the figures shared.

EBITDA and margin expand sharply

Operational performance improved significantly, with EBITDA for the June quarter rising to ₹70.6 crore from ₹23.5 crore a year ago. EBITDA margin improved to 11.2% from 4.5% year-on-year, based on the data shared. The combination of stronger revenue and higher operating profitability appears to have been a key driver of the stock’s rally. The results summary also showed total expenses of ₹599.24 crore against total income of ₹648.23 crore for the quarter, supporting the turnaround in profitability.

Board approval and audit review

The Board of Directors approved the unaudited consolidated and standalone financial statements at a meeting held on August 11, 2026, according to the disclosure. The results were reviewed by N. A. Shah Associates LLP, the statutory auditors. The auditors issued an unmodified conclusion under Regulation 33 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The regulatory framing is important for investors because it clarifies that the quarterly numbers underwent the standard limited review process for listed companies.

Standalone performance also improves

On a standalone basis, the company reported a profit after tax of ₹5.53 crore, compared with a loss of ₹1.85 crore in the previous year’s quarter. While standalone revenue from operations fell to ₹366.27 crore from ₹384.25 crore, the movement in standalone profit suggests cost or other income dynamics also played a role in the quarter. The shared data set also included a broader quarterly table showing historical revenue and expenses trends, but the most directly comparable standalone datapoints were the quarter-on-quarter and year-on-year profit shift and the revenue decline noted above.

GST dispute update: Dehradun appeal partly allowed

Unichem Laboratories also informed stock exchanges about an indirect tax matter. The company said the CGST appellate authority in Dehradun partially allowed its appeal related to the disallowance of GSTR TRAN 1 credit. The initial disallowance was ₹0.7303 crore (₹73.03 lakh), but the revised demand stands at ₹0.1059 crore (₹10.59 lakh) plus interest. The company disclosed on July 29, 2026 that the Additional Commissioner, CGST (Appeals), Dehradun, had partially allowed the appeal.

Key financial snapshot

The following table compiles the main consolidated metrics that were explicitly provided.

Market impact: what investors reacted to

The market response tracked the scale of the earnings turnaround and the jump in EBITDA and margin. A move from a net loss of ₹10.47 crore to a net profit of ₹41.47 crore, alongside revenue growth of 20.1%, is typically interpreted as a meaningful shift in operating trajectory. The sharp expansion in EBITDA margin to 11.2% from 4.5% strengthened that narrative. The intraday high of ₹598.35 and the 2:10 PM level of ₹578.95 indicated that the stock retained most of its gains through the session, even after some pullback from the peak.

Why the quarter mattered

Two details stood out in the information shared. First, the company pointed to international markets, especially the UK and US subsidiaries, as contributors to growth, aligning the headline numbers with an identifiable business driver. Second, the results went through board approval and statutory auditor review with an unmodified conclusion, which helps reduce uncertainty around the reported figures. Separately, the GST appeal update reduced the indicated demand from ₹0.7303 crore to ₹0.1059 crore plus interest, a development that may be watched as part of compliance and contingent liability tracking.

Conclusion

Unichem Laboratories’ latest quarter showed a clear year-on-year turnaround in net profit to ₹41.47 crore, supported by 20.1% revenue growth to ₹632.62 crore and a sharp rise in EBITDA and margin. The stock reacted with an intraday jump of up to 17.79% on the BSE. The company’s board approved the unaudited results on August 11, 2026, and the statutory auditors issued an unmodified conclusion. Investors will track subsequent quarterly updates for confirmation of whether the improved profitability and international-market momentum continue.