Q2 FY27 results analysis · November 05, 2026
Abbott India Q2 FY27 Results Analysis: Revenue Accelerates 11%, Margin Holds at 32.59% (ABBOTINDIA)
+9.2%PAT year on year, Rs. 453.45 Cr
Source: Quarterly results filing (BSE)
Quick summary
Abbott India Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 1,951.01 Cr (+11.03% YoY) and PAT growth of +9.19% YoY. Here's a quick read of what worked, what to watch, and what management said.
Quick Details
| Results date | November 05, 2026 |
|---|---|
| Revenue (Q2) | Rs. 1,951.01 Cr (+11.03% YoY) |
| PAT (Q2) | Rs. 453.45 Cr (+9.19% YoY) |
| EBITDA margin | 32.59% (+3 bps YoY) |
| EPS (Q2) | Rs. 213.39 (+9.20% YoY) |
Quarter Snapshot
Q2 FY27 revenue accelerated to +11.03% YoY (Rs 1,951.01 Cr) with PBT growth of +11.82% outpacing revenue, while EBITDA margin held at 32.59% despite a ~Rs 50 Cr adverse inventory swing. H1 CFO grew +26.25% YoY with FCF of Rs 643.92 Cr, and a Rs 1,393.95 Cr dividend was absorbed while cash still rose. No numerical management guidance exists to benchmark against; the sequential revenue acceleration and margin preservation are the key signals.
Q2 FY27 Expectations vs Results
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| Revenue vs IPM | "revenue growth likely remains below the IPM print unless the Extensior ramp and new-launch cadence accelerated" | +11.03% YoY (vs ~+11.9% IPM quarter print cited in the pre-call note) and a sharp acceleration from Q1's +4.33% — marginal) — essentially at the market's pace, with clear sequential acceleration | Played out |
| Margins | "likely compressing vs Q1's elevated base, flat-to-modestly expanding YoY" | EBITDA margin 32.59%: −37 bps QoQ, +3 bps YoY | Played out |
| Purchases-ratio reversion to 48–50% as FX benefit fades | "purchases ratio is expected to revert to 48–50% as old stock is replaced" | Purchases ratio fell QoQ to 42.83% from 44.77%; margin dip only −37 bps. The 48–50% band does not match the filing's purchases/revenue level for either quarter — basis discrepancy; the filing governs — in Abbott's favor… | Contradicted |
| Labour Codes cost step-up | "any re-acceleration is the bridge item to watch" (Q1 +4.30% YoY) | Employee costs +13.47% YoY, ratio 9.25% of revenue — re-accelerated but absorbed | Played out |
| Watch: quantum of Q1 inventory-FX benefit reversal | "how much of the Q1 inventory-FX benefit reversed" | Not quantified in the filing; observable proxy is the −37 bps QoQ margin dip | Partially observable |
| Watch: Extensior ramp; Women's Health stabilization | uptake / pricing posture | Filing silent on both (single-segment disclosure) — remains open for the call | Not addressed in the filing |
| Watch: post-dividend cash rebuild | "first full quarter of post-dividend cash rebuild" | Cash + bank Rs 1,554.83 Cr; H1 CFO Rs 658.97 Cr (+26.25%); FCF Rs 643.92 Cr; dividend outflow Rs 1,393.95 Cr absorbed | Played out |
| Watch: GST-penalty appeal; September IPM print | appeal status / demand baseline | Neither addressed in the filing — remains open | Not addressed in the filing |
Read our full results preview.
Management Guidance vs Delivery
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| "Sustaining growth while preserving the quality of margins" (open-ended) | FY 2025-26 Annual Report / MD's statement ("EBITDA improved from 31% to 32%") | Company-basis EBITDA margin 32.59% vs 32.56% year-ago; 32.78% H1 vs 31.46% FY26 | Met |
| "Sharp focus on cash generation and capital efficiency" (open-ended) | FY 2025-26 Annual Report (MD's letter) | H1 CFO Rs 658.97 Cr (+26.25% YoY); FCF Rs 643.92 Cr on capex of Rs 15.05 Cr | On Track |
| Sustained new launches / portfolio expansion by FY 2026-27 | FY 2025-26 Annual Report (BRSR outlook) | Not disclosed in this filing | Too Early |
| Deepen Tier 2/Tier 3 presence by FY 2026-27 | FY 2025-26 Annual Report (BRSR outlook) | Not disclosed in this filing | Too Early |
| "Margins remained stable, with a gradual upward trajectory" | FY26 MD&A (prior-period notes) | EBITDA margin 32.59% vs 32.56% YoY; H1 32.78% vs FY26's 31.46% | Confirmed |
| Growth "consistently above market" (IPM 8–9% historically) | FY26 Annual Report citing IQVIA (prior-period notes) | Q2 revenue +11.03% YoY; H1 +7.70% — Q2 above the historical IPM band, H1 within it | Confirmed for Q2 |
Key Investment Insights
Key Positives
- Revenue grew +11.03% YoY to Rs 1,951.01 Cr, accelerating from +4.33% in Q1 FY27 and above FY26's full-year pace of +8.11%
- PBT grew +11.82% YoY to Rs 610.47 Cr, outpacing revenue growth
- Company-basis EBITDA margin held at 32.59% (+3 bps YoY) despite a ~Rs 50 Cr adverse inventory swing; H1 margin 32.78% vs FY26's 31.46%
- Ex-other-income EBITDA grew +13.08% YoY with margin expanding to 29.10% from 28.58%
- H1 CFO grew +26.25% YoY to Rs 658.97 Cr; FCF of Rs 643.92 Cr on capex of Rs 15.05 Cr
- Finance costs fell -21.19% YoY, reversing the FY26 lease-interest step-up; lease liabilities reduced to Rs 154.33 Cr
- Dividend of Rs 1,393.95 Cr paid in H1 while cash still rose Rs 395.11 Cr
- Limited review unqualified with no exceptional items or abnormal disclosures
Risk Factors
- Effective tax rate rose ~179 bps YoY to 25.72% (prior-year quarter had a Rs 6.04 Cr prior-period tax credit), causing PAT growth (+9.19%) to lag PBT growth (+11.82%)
- Other expenses grew +21.17% YoY and employee costs +13.47% YoY, both outpacing revenue growth, though partly on a low year-ago base
- Trade receivables grew +30.30% vs March, faster than H1 revenue growth; DSO lengthened to ~22.9 days from ~19.1 days
- CFO/PAT of 0.75x is below 0.8x, with the shortfall in receivables build (-109.39 Cr) and payables reduction (-85.52 Cr)
- Other income declined -2.70% YoY to Rs 68.06 Cr
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Disclaimer: This results analysis is published for educational and informational purposes only. It is not investment advice, not a recommendation to buy, sell or hold any security.