Wanbury Limited Reports Q1 FY27 Revenue of ₹165.6 Crore; Refinances ₹205 Crore Debt to Cut Interest Costs

Navi Mumbai-based pharmaceutical company Wanbury Limited (BSE: 524212, NSE: WANBURY) announced its unaudited financial results for the first quarter ended June 30, 2026.

While top-line growth saw a modest expansion despite geopolitical disruptions in West Asia, profitability faced temporary pressure due to spiked solvent and raw material costs. However, the company achieved key strategic milestones, including a major debt refinancing deal, release of promoter share pledges, and regulatory clearances across global API sites.

Financial Performance Overview

Revenue from Operations: Stood at ₹165.6 crore in Q1 FY27, up 1.5% year-on-year compared to ₹163.2 crore in Q1 FY26 and ₹164.6 crore in Q4 FY26. Growth was partially constrained by West Asia logistics disruptions, which delayed selected API export shipments.

Gross Profit & Margin: Gross profit came in at ₹86.9 crore, with gross margins contracting to 52.5% (down from 54.0% in Q1 FY26 and 60.4% in Q4 FY26) due to a sudden surge in prices of solvents and crude-oil-linked inputs.

EBITDA (including Other Income): Reported at ₹16.6 crore with an EBITDA margin of 10.0% (down from 15.2% in Q1 FY26 and 18.2% in Q4 FY26), reflecting raw material inflation and increased employee costs from strategic expansion hiring.

Profit After Tax (PAT): Came in at ₹3.2 crore with a PAT margin of 2.0% (compared to ₹13.5 crore in Q1 FY26), yielding an Earnings Per Share (EPS) of ₹0.93.

Key Financial and Capital Structure Developments

₹205 Crore Debt Refinancing: Wanbury successfully completed the refinancing of its existing high-cost borrowings via new credit facilities from Axis Finance Limited and Poonawalla Fincorp.

Lower Interest Cost from Q2 FY27: Effective July 1, 2026, the company's borrowing cost drops from 12.5% per annum to sub-10% per annum, which will reduce finance costs and boost net margins starting in Q2 FY27.

Release of Promoter Share Pledge: Following the debt refinancing, 1,42,03,818 equity shares belonging to the promoter group have been freed from pledge. This represents 40.65% of the company's total paid-up equity share capital and 94.51% of the overall promoter group holding.

Regulatory Approvals and Operational Updates

TGA Australia Approval: The API manufacturing facility at Tanuku, Andhra Pradesh, successfully cleared the quality inspection by Australia's Therapeutic Goods Administration (TGA). Upon formal receipt of the GMP certificate, Wanbury will export 3 additional APIs to Australia.

MFDS Korea Clearance: The Patalganga plant in Maharashtra completed the South Korea Ministry of Food and Drug Safety (MFDS) audit with zero observations, securing its formal audit report and GMP certificate.

USFDA & Global Regulatory Filings: Received a "No DMF deficiency letter" from the USFDA on July 30, 2026, for multiple ANDAs referencing Wanbury's Metformin HCl API. Secured a Certificate of Suitability (CEP) for Rivaroxaban API on July 31, 2026. Filed Drug Master Files (DMFs) for Diphenhydramine HCl (Malaysia, Singapore) and Paroxetine HCl (Korea, Latin America).

Capacity Expansion: A new state-of-the-art manufacturing block at the Tanuku site is undergoing validation and commercialization, with commercial scale-up expected to drive volume growth in upcoming quarters.

Mohan Rayana, Director of Wanbury Limited, stated: "Q1 FY27 was a quarter marked by an unprecedented increase in input costs. The ongoing crisis in West Asia drove a significant sudden increase in the prices of key raw materials, particularly solvents and other crude oil linked inputs, which led to a direct and significant contraction in gross margins during the quarter.

Given the extent and timing of the increase, the entirety of this inflation could not be passed on within Q1 and will be fully passed on in Q2. EBITDA Margins for the quarter also reflect a higher employee cost base due to additional hiring for new growth initiatives. We view these pressures as transitory and specific to the input cost environment prevailing during the period. They are not indicative of the Company's normalised operating margins, and we expect gross margins and EBITDA margins to recover fully from Q2 onwards.

In addition, we expect a reduction in finance costs from Q2FY27 onwards, given that our borrowings have been refinanced at a lower interest rate. Operational momentum continued in the business through the quarter. We cleared regulatory inspections at both our API sites, expanded our DMF filings into new markets, and completed a refinancing that has lowered our cost of borrowing and released the pledge on the substantial majority of promoter holdings."

Shares of Wanbury Limited was last trading in BSE at Rs. 253.30 as compared to the previous close of Rs. 246.45. The total number of shares traded during the day was 214107 in over 1619 trades.

The stock hit an intraday high of Rs. 258.30 and intraday low of 231.85. The net turnover during the day was Rs. 52745290.00.

Source : Equity Bulls

Keywords

Wanbury INE107F01022 Pharmaceuticals Q1FY27 Q1FY2027 ResultUpdate