Unichem Laboratories' Q2 FY 2025-26 Quarterly Results

Result Summary

• Unichem Laboratories Ltd reported a 12.5% quarter-on-quarter (QoQ) increase in its consolidated revenues for the quarter-ended Sep (Q2 FY 2025-26). On a year-on-year (YoY) basis, it witnessed a growth of 27.4%.
• Its expenses for the quarter were up by 1.9% QoQ and 26.2% YoY.
• The net profit increased 13.6% QoQ and decreased 139.0% YoY.
• The earnings per share (EPS) of Unichem Laboratories Ltd declined at 1.69 during Q2 FY 2025-26.

Financial Statments for Q2 FY 2025-26

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Company Overview

Unichem Laboratories Ltd is a prominent player in the pharmaceutical industry, engaged primarily in the manufacturing and marketing of pharmaceutical formulations. The company is known for its wide range of generic and branded formulations, catering to various therapeutic areas. Headquartered in India, Unichem Laboratories has a substantial presence both domestically and in international markets. The company focuses on quality and innovation, emphasizing research and development to strengthen its product portfolio. As of the latest updates available up to October 2023, there have been no publicly documented major developments affecting the company. However, the pharmaceutical sector remains dynamic, with companies like Unichem Laboratories continuously adapting to regulatory changes, market demands, and competitive pressures.

Revenue

In Q2FY26, Unichem Laboratories Ltd reported a total income of ₹599.93 crores, compared to ₹533.42 crores in the previous quarter, Q1FY26, and ₹470.95 crores in Q2FY25. This represents a quarter-over-quarter (QoQ) increase of 12.5% and a year-over-year (YoY) growth of 27.4%. The significant YoY increase indicates an upward trajectory in the company's revenue stream over the past year. This growth can be attributed to various factors, including potential increases in product demand, expansion in market reach, or enhancements in the company's sales and distribution strategies. The revenue growth reflects the company's operational performance during the period under review.

Profitability

Unichem Laboratories Ltd's profitability metrics present a challenging picture for Q2FY26. The company reported a loss before tax of ₹10.82 crores, which is a further decline from the loss of ₹9.02 crores in Q1FY26. This marks a 20.0% increase in the loss QoQ. When compared to Q2FY25, where the company recorded a profit before tax of ₹32.99 crores, there is a significant YoY decline of 132.8%. Profit after tax for Q2FY26 stands at a loss of ₹11.89 crores, worsening from a loss of ₹10.47 crores in Q1FY26, and contrasting sharply with the profit of ₹30.49 crores in Q2FY25. The earnings per share (EPS) also reflect this trend, recorded at a loss of ₹1.69 in Q2FY26, down from a loss of ₹1.49 in Q1FY26 and a profit of ₹4.32 in Q2FY25. This data points to increased financial pressures on the company's profitability over the respective periods.

Operating Metrics

For Q2FY26, Unichem Laboratories Ltd's total expenses amounted to ₹552.49 crores, showing a slight increase of 1.9% from ₹542.44 crores in Q1FY26. Compared to Q2FY25, where expenses were ₹437.96 crores, there is a substantial YoY increase of 26.2%. Despite the increase in total income, the expenses have also risen, impacting the company's profitability margins. The tax expense for Q2FY26 was ₹1.07 crores, a reduction from ₹1.45 crores in Q1FY26 and significantly lower than the ₹2.50 crores reported in Q2FY25, representing decreases of 26.2% QoQ and 57.2% YoY. This reduction in tax expense could be due to lower taxable income resulting from the reported losses. The overall operating metrics indicate heightened operational costs, which, alongside revenue and profitability data, provide insights into the company's financial operations for the quarter.