IOL Chemicals Net Profit Surges 117% in Q2 FY27 as Non-Ibuprofen API Revenue Jumps 70%

Key numbers

Net Profit Growth	117.1%YoY Surge
Operating Revenue	₹795.03 CrQ2 FY27
Market Cap	₹5,214.52 CrPharmaceuticals
PE Ratio	25.66Trailing 12 Months

Key highlights

• Revenue from operations grew 40% YoY to ₹795.03 crore in Q2 FY27
• Net profit reached ₹65.07 crore, up from ₹30.00 crore in the prior year period
• Non-Ibuprofen API portfolio registered 70% YoY revenue growth during the quarter
• Management raised FY27 revenue growth guidance to 25%+ from the previous 15-20% range
• EBITDA margin improved to 14.4% versus 11.2% four quarters ago

Pharma Diversification and Chemical Segment Gains

IOL Chemicals successfully reduced its historical dependence on Ibuprofen during Q2 FY27. The pharmaceutical business witnessed a 40% YoY revenue increase, significantly driven by a 70% surge in the non-Ibuprofen API portfolio. This segment now accounts for 45% of pharmaceutical revenue, up from 38% last year.

Meanwhile, the chemicals business saw EBIT contributions rise to 7% from just 1% in the year-ago period. Improved capacity utilization, currently at 90-95%, has allowed the company to absorb rising costs for raw materials like acetic acid while maintaining price stability for core products such as Paracetamol.

A ₹495 Crore Internal Accrual Expansion Roadmap

• ₹350 crore investment to expand Ibuprofen capacity from 12,000 MTPA to 18,000 MTPA by December 2027
• ₹110 crore allocated for a new EU GMP-certified CDMO formulation facility with 1,500 million tablets capacity
• ₹35 crore dedicated to a specialty chemicals plant under a long-term tolling agreement with a global major
• Strategic focus on backward integration to secure the competitive moat against raw material volatility
• Full funding through internal accruals keeps the balance sheet lean with manageable net debt
• Achieved EU Reach registration for Triacetin and CEP approval for Fenofibrate milestones

Strategic Outlook on Margins and Market Scaling

Our non-ibuprofen portfolio maintained its growth momentum registering approximately 70% Y-o-Y revenue growth during Q2 and contributing 45% of pharmaceuticals revenue compared with 38% in the corresponding quarter last year. This reflects the increasing scale and contributions of our diversified API portfolio.

Elevated Growth Guidance for FY27

Following the strong first-half performance, IOL management has revised its full-year growth outlook upward. The company now expects revenue to grow by over 25% in FY27, a significant jump from the earlier guidance of 15-20%. Sustainable EBITDA margins are projected between 15% and 17% as new capacities come online.

Finance costs slightly increased during the quarter due to higher working capital utilization, but the company remains well-capitalized with sufficient cash flow to fund the ongoing ₹250 crore capex planned for the current fiscal year.

What to watch next

• Commercialization of the 1,500 million tablets per annum CDMO formulation facility in Q3 FY27
• Scaling of specialty chemicals production following commissioning in November 2026
• Progress on the 6,000 MTPA backward-integrated Ibuprofen expansion scheduled for late 2027

“We have maintained the positive momentum during the second quarter of FY27 delivering healthy growth across our businesses accompanied by a meaningful improvement in profitability.”

“As we move to the second half of the financial year our focus will remain on improving profitability, optimizing working capital and maintaining financial discipline.”

IOL Chemicals and Pharmaceuticals · financial snapshot

Share price	₹177.65
Market capitalisation	₹5,214.52 Cr
Revenue (annual)	₹2,319.06 Cr
Net profit (annual)	₹137.64 Cr
Revenue (latest quarter)	₹795.03 Cr+5.13% vs previous quarter
Net profit (latest quarter)	₹65.07 Cr+1.04% vs previous quarter
P/E (TTM)	25.66×Sector 45.87×
Promoter holding	62.28%0.00% QoQ
FII holding	7.26%Current quarter

Reference market data from a third-party provider, as of the story. Not a valuation or a recommendation.