Viyash Scientific Ltd Q2 FY27 Results Analysis: PAT Jumps 38.72%, Margin Compresses 367 bps
Viyash Scientific Ltd's Q2 FY27 numbers came in strong, with revenue of Rs. 987.94 Cr (+16.19% YoY) and PAT growth of +16.12% YoY. Here's a quick read of what worked, what to watch, and what management said.
| Results date | November 13, 2026 |
|---|---|
| Revenue (Q2) | Rs. 987.94 Cr (+16.19% YoY) |
| PAT (Q2) | Rs. 84.65 Cr (+16.12% YoY) |
| EBITDA margin | 20.51% (+14 bps YoY) |
| EPS (Q2) | Rs. 1.74 (+35.94% YoY) |
Quarter Snapshot
VIYASH delivered 16.19% YoY revenue growth with owners' PAT up 38.72% and adj-ESOP EBITDA margin held at 20.51%, meeting management's margin commitment, while net debt fell to Rs.26.15 cr on the path to debt-free FY27. The P&L-derived margin compressed 367 bps YoY to 16.70% on a rising materials ratio and the Rs.37.70 cr quarterly ESOP charge remains the wedge between reported and guided profitability. FY27 revenue of Rs.4,000 cr needs only +4.55% per quarter over Q2, with BioForLife Italia consolidation from Q3 adding further.
Q2 FY27 Expectations vs Results
| Driver | Expected before results | What happened | Verdict |
|---|---|---|---|
| Revenue | "in-line to ahead" | +16.19% YoY, +4.39% QoQ (cons_rev_yoy/qoq) | Played out |
| Margins | "likely expanding" on input-cost relief + FX | Adj-ESOP margin +13.7 bps YoY but −37.7 bps QoQ; materials ratio +187 bps QoQ | Partially |
| API "best quarter in history" | order-book test | Not observable in filing | Not observable |
| EU +18–20% INR organic | FX-aided | Not observable in filing | Not observable |
| ESOP ~Rs.40 cr/quarter | continues | Rs.37.70 cr | Played out |
| BioForLife deal costs in Q2 exceptionals | expected possible charge | Exceptionals nil; deal completed 1-Oct-2026, no impact given — favorably — none booked | Contradicted |
| Turkey Ind AS 29 magnitude | watch | Rs.1.57 cr (vs Rs.1.44 cr Q1) | Played out |
| Capex run-rate vs Rs.250–300 cr | step-up expected | Rs.67.38 cr H1 — behind straight-line | Partially |
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Management Guidance vs Delivery
| What management said | Where | What happened | Verdict |
|---|---|---|---|
| EBITDA margin 20%-plus sustained | Q4 FY26 earnings call ("maintain current margin levels"); 20% by FY28, potentially FY27 pre-ESOP | 20.51% adj-ESOP margin (16.70% P&L-derived) | Met |
| ESOP ~Rs.40 cr/quarter, ~Rs.150 cr FY27 | Q1 FY27 earnings call (Aug 12, 2026) | Rs.37.70 cr in Q2 (Rs.57.00 cr H1) | On Track |
| Goodwill amortization Rs.100 cr → Rs.35 cr step-down | Q4 FY26 earnings call (May 20, 2026) | D&A −26.61% QoQ (Rs.61.77 → Rs.45.33 cr); exact split not disclosed | On Track |
| Debt-free by FY27 | Q2 FY26 earnings call, reiterated Q1 FY27 | Net debt Rs.26.15 cr (vs Rs.166.11 cr at Mar-26) | On Track |
| Group revenue Rs.4,000 cr (FY28 target, "reachable in FY27 pre-ESOP") | Q3 FY26 earnings call | H1 Rs.1,934.30 cr; H2 needs Rs.2,065.70 cr (avg Rs.1,032.85 cr/qtr, +4.55% vs Q2) | On Track |
| Capex Rs.250–300 cr ("CAPEX at minority") | Q1 FY27 earnings call (Aug 12, 2026) | H1 cash capex Rs.67.38 cr | Stretch |
| "Confident in maintaining current margin levels" despite R&D/capacity investment | Q4 FY26 earnings call | Adj-ESOP margin 20.51% vs 20.89% Q1 / 20.37% year-ago — held above 20% | Confirmed |
| API input costs / order postponements were a Q1 headwind | Q1 FY27 earnings call | Materials ratio rose further (+187 bps QoQ); filing gives no API split to confirm relief | Too Early |
| US tariffs have no impact on the business | Q1 FY27 earnings call | Filing silent on tariffs | Too Early |
Key Numbers, Quarter by Quarter
| Metric | Q2 FY26 | Q1 FY27 | Q2 FY27 |
|---|---|---|---|
| Adj-ESOP EBITDA margin % | 20.37 | 20.89 | 20.51 |
| NCI share of PAT % | 24.68 | 16.93 | 10.02 |
| Net debt (Rs. cr) | n/a (filing BS starts Mar-26) | 86.10 (per prior-quarter analyst notes) | 26.15 |
Key Investment Insights
Key Positives
- Consolidated revenue grew 16.19% YoY and 4.39% QoQ to Rs.987.94 cr; H1 revenue up 17.81% YoY
- Owners' PAT grew 38.72% YoY to Rs.76.17 cr; basic EPS up 35.94% YoY to Rs.1.74
- H1 owners' PAT up 63.77% YoY; consolidated PAT up 49.38% YoY
- Adj-ESOP EBITDA margin held at 20.51%, meeting management's 20%-plus commitment
- Net debt reduced to Rs.26.15 cr from Rs.166.11 cr at Mar-26, on track for debt-free FY27
- NCI share of PAT fell to 10.02% from 24.68% a year ago, improving owners' retention
- H1 CFO of Rs.182.74 cr was 1.11x PAT; FCF of Rs.115.36 cr
- Finance costs fell to Rs.13.71 cr from Rs.17.51 cr YoY; D&A down 26.61% QoQ on goodwill-amortization step-down
Risk Factors
- Materials ratio rose 187 bps QoQ and 284 bps YoY to 44.39%; expected input-cost relief not visible in the P&L
- P&L-derived EBITDA margin compressed to 16.70% from 20.37% YoY (-367 bps); 20.51% only on the adj-ESOP basis
- ESOP-2026 charge of Rs.37.70 cr in Q2 (Rs.57.00 cr H1) will continue at ~Rs.40 cr/quarter through FY27
- H1 working capital absorbed Rs.239.90 cr across inventory and receivables build
- H1 capex of Rs.67.38 cr is behind the Rs.250-300 cr full-year guide, requiring sharp H2 acceleration
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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.