Advanced Enzyme Technologies Ltd (ADVENZYMES) Q2FY27 Concall Transcript - Sep-2026 Qtr
Moderator: Ladies and gentlemen, good day and welcome to the Advanced Enzyme Technologies Limited Q2 FY27 earnings conference call. As a reminder, all participant lines will be in the listen-only mode, and there will be an opportunity for you to ask questions after the presentation concludes. Should you need assistance during this conference call, please signal an operator by pressing "*" then "0" on your touchtone phone. Please note that this conference is being recorded. I now hand the conference over to Mr. Ronak Saraf. Thank you, and over to you, sir.
Ronak Saraf (Advanced Enzyme Technologies Ltd): Thank you. Good evening, everyone. Welcome to Advanced Enzyme Technologies Q2 and H1 FY27 earnings conference call. We sincerely hope you all have gone through our financials press release and the presentation which has been posted in the Investor Relations section of our website as well as on the stock exchanges. We have with us, Mr. Mukund Kabra, Whole-Time Director, and Mr. Beni Rauka, Group CFO. Today, the management will discuss the performance and business highlights, update on strategies and respond to any questions that you may have. As is usual, for ease of discussion, we will look at the consolidated financials. I would like to draw your attention to the fact that some of the information shared during this call, particularly regarding our plans, strategies, and future outlook, may contain forward-looking statements. These statements involve inherent risks and uncertainties and are based on current expectations, forecasts, and assumptions. Actual results may differ materially from those expressed or implied in these statements, influenced by a range of factors, including, but not limited to, economic conditions, changes in government policies, regulatory developments, and other unforeseen circumstances. Recipients are cautioned not to place undue reliance on these forward-looking statements as they are not guarantees
Ronak Saraf (Advanced Enzyme Technologies Ltd): use for independent judgment. The company undertakes no obligation to update or revise any such statements whether as a result of new information, future events or otherwise. Now without any further ado we shall commence this call. Over to you Mukund sir.
Mukund Kabra (Advanced Enzyme Technologies Ltd): Thank you, Ronak. Good evening, everyone. Thank you for joining us today for our quarter two and half yearly earning call. I extend a warm welcome to all of our shareholders and partners. As the festive season is just around the corner, the entire AETL family would like to extend our warmest wishes to you and your loved ones. May this Festival of Lights fill your lives with happiness, prosperity, good health, and success. Wishing you and your family a joyful, bright, and wonderful Diwali. Before we discuss the performance for the quarter, we are pleased to announce that the company has successfully completed the buyback by acquiring 2.41 million equity shares at an average price of ₹289.09 per share via open market route. This reflects our continued commitment to enhancing shareholder value and maintaining a balanced approach towards capital allocation. On the global front, the economic environment continues to remain challenging, with geopolitical tensions across various regions creating uncertainty in international trade, supply chains, and commodity markets. These developments, coupled with inflationary pressure, volatile energy prices, and fluctuations in currency markets continue to influence the overall business environment. While central banks across major economies remain focused on managing inflation and supporting growth, the pace of recovery remains uneven. In this environment, we continue to remain watchful, focus on operational efficiencies, prudent cost management, and disciplined execution to navigate uncertainties while pursuing our long-term growth objectives. I am happy to announce that we have reported robust numbers for the quarter two fiscal '27. We have witnessed growth across all business segments of our presence. Our quarter two number delivery delivery reflects a strong growth. The fundamental strength of our business remains firmly intact, and we anticipate progressive momentum as the year advances. While it is important to view this performance in the context of the inherent nature of our business, that's the reason we always suggest all our shareholders to evaluate our business on an annual horizon rather than through the lens of a single quarter. Our top line for the quarter stood at ₹2,145 million, registering a growth of 16% year-on-year and 12% on sequential basis, while the first half of financial year '27 revenue grew by 10% over the corresponding period last year. EBITDA increased to ₹721 crore, up 20% year-on-year and 36% sequentially, while the same grew by 7% on year to date basis. Consequently, the EBITDA margin stood at 34%, compared to 33% in quarter two financial year '26 and 28% in quarter one financial year '27. On YTD basis, this number remains unchanged at 31%. Although the input costs like power and fuel and raw materials remained elevated during the quarter, but our focus on operational efficiencies eliminated the risk and delivered robust margins. We anticipate this as as sustainable growth and stronger performance throughout the rest of the year. Moving to profitability, profit after tax, PAT, stood at ₹512 million, grew by 14% year-on-year basis, 33% sequential basis, and 5% on YTD basis. The PAT margin for the quarter was 24% and 22% for the first half financial year '27. Now I will take you through our segment-wise revenue performance for the second quarter of financial year '27 and compare it both year-on-year, sequentially, and year to date. Let's begin with human healthcare. Revenues for quarter two financial year '27 stood at ₹1,285 million, reflecting a 6% YoY growth and 11% sequential increase. This growth was
Mukund Kabra (Advanced Enzyme Technologies Ltd): primarily attributable to improved sales in the Pharma API business, Biocatalysis, and Nutrition business. Human Healthcare business remained unchanged on YTD basis. Moving to Animal Healthcare, revenue stood at ₹265 million, registering a robust 37% year-on-year growth, 5% increase quarter-on-quarter, and 14% growth on YTD basis. The segment contributed approximately 12% to our overall revenues during the quarter. Turning Turning to Bio-Processing, the segment reported revenues of ₹365 million, delivering a strong 43% year-on-year growth, 19% sequential increase, and 37% growth in the first half of the fiscal. The segment contributed approximately 17% to our total revenues during the quarter. Lastly, Specialized Manufacturing reported revenues of ₹231 million, registering a healthy 25% year-on-year growth, 15% increase over the previous quarter, and 32% growth on the first half of the current fiscal. The segment accounted for approximately 11% of our overall revenue during the quarter. We anticipate that our growth trajectory will remain strong across all business segments in the foreseeable future. This sustained momentum reflects our strategic focus on innovation, operational excellence, and customer-centric initiatives. As we move forward, our priority is to enhance operational resilience, ensuring that we remain agile and well positioned to adapt to evolving market conditions and emerging challenges. Through disciplined execution and responsible growth, we aim to strengthen our long-term value proposition and create sustainable, enduring benefits for all our shareholders. With this, I will now hand over the call to Ravka ji. He will walk you through the financials and key subsidiary numbers.
Beni Rauka (Advanced Enzyme Technologies Ltd): Thank you very much, Mukund. Good evening, everyone. I hope you all are in good health and doing well. Wishing you all a very great festive season ahead. On the company's consolidated financials for the second quarter and first half of fiscal year 2027, let me give you first year-on-year basis numbers. So our revenue increased by ₹300 million, it's a 16% of growth on ₹1,840 million to ₹2,145 million. Our EBITDA increased by 121 million, 20% growth, from ₹601 million to ₹721 million. And this is about 34% of our revenue as compared to 33% in the corresponding previous quarter. Profit before tax increased by ₹92 million, a 15% increase, from ₹595 million to ₹688 million. Our PAT has increased by ₹64 million, a 14% increase, from ₹447 million to ₹512 million. This is about 24% of our revenue. So, this was on year-on-year basis, and on sequential basis, this is quarter-on-quarter, our revenue increased by 12% from ₹1,917 million to ₹2,145 million. EBITDA increased by ₹192 million,
Beni Rauka (Advanced Enzyme Technologies Ltd): So, this is about 24% as compared to 20% of our revenue in the previous quarter. Let me give you now YTD performance. For 6 months revenue increased by rupees 358 million, so we have 10% of growth in 6 months, from rupees 3,704 million to rupees 4,062 million. This is our top line. And EBITDA is improved by rupees 85 million from rupees 1,165 million to rupees 1,250 million. So, this is about 31% of our revenue and last year also we had about 31% in terms of percentage. PBT increased by 78 million from rupees 1,144 million to rupees 1,223 million and our PAT is increased by 46 million from rupees 852 million to rupees 897 million. This is about 22% of our top line. JC Biotech sale numbers stood at rupees 200 million with EBITDA of 29 million and PAT of 70 million, 17 million in quarter two of FY 27 as compared to 186 million of revenue, 37 million of EBITDA and 17 million of PAT during Q2 of FY 26. So, for 6 months, JCB top line stood at 395 mil- million as compared to 397 million, EBITDA of 56 million as compared to 70 million and PAT of 27 million as compared to 31 million. Evox sale number is about 75 million. This is the top line and EBITDA of 4 million. PAT Evox has reported 7 million of loss during this quarter as compared to 18 million in corres- in the last quarter and last year it was 14 million of PAT. So, for 6 months, revenue of Evox is 149 million as compared to 144 million, EBITDA of 8 million negative as compared to 31 million of EBITDA positive and PAT of 26 million negative as compared to 21 million of PAT during 6 months of previous year. SciTech number stood at 234 million during this quarter with EBITDA of 61 million and PAT of 36 million as compared to revenue of 185 million, EBITDA of 33 million and PAT of 15 million. So, 6 months, the SciTech number, which is our specialized manufacturing activities, wherein we had top line of 434 million in H1 of FY 27 as compared to 330 million, registering a growth of 32%. EBITDA of 92 million as compared to 38 million. So, this is about 144% of increase. PAT is about 49 million as compared to 8 million last year for 6 months. So, this is about 520% of growth. Our top 10 customer contribute about 26% in quarter two of this year as compared to 27% in quarter two of last year. So, overall for 6 months, top 10 customer, 22% as compared to 23%. B2C segment has contributed about 910,000 as compared to 1.29 million last year. So, B2C segment is 2.06 million as compared to 2.42 million in last year 6 months. Healthcare, generally we give some numbers, so in India we had about 696 million in quarter two as compared to 580 million in Q1 and as compared to 570
Beni Rauka (Advanced Enzyme Technologies Ltd): in Q2 of FY 26. And international business 588 million as compared to 578 and 642 million. So total as Mukund has already mentioned human healthcare this quarter was 1,285 million. Our R&D spend has increased during this quarter. We have spent about 80 90 million as compared to 86 million and overall for 9 months, we have spent about 260 million as compared to 166 million. R&D expenses on consolidated basis, this is works out to be 6% excluding our intercompany, without considering intercompany elimination, because Evox is kind of, you know, research and development company. And on consolidated basis, R&D spend if we consider the intercompany elimination, that works works out to be about 4.3% during quarter two as compared to 3% in Q2 of FY 26. So, this is all from my side. Now we shall open the floor for question answer session. Thank you.
Moderator: Thank you very much. Ladies and gentlemen, we will now begin the question and answer session. Anyone who wishes to ask a question may press star and one on the touch tone telephone. If you wish to remove yourself from the question queue, you may press star and two. Participants are requested to use handsets while asking a question. Ladies and gentlemen, we'll wait for a moment while the question queue assembles. The first question is from the line of Abhishek Navalgund from Nirmal Bang Equities. Please go ahead.
Abhishek Navalgund (Nirmal Bang Equities): Yeah, hi. Congrats on a good set of numbers. Sir, my first question is on the US market. So, could you please elaborate in terms of the future outlook as we see in the US market for us?
Mukund Kabra (Advanced Enzyme Technologies Ltd): Abhishek ji, we are progressing. I mean like there was some kind of a dullness which was there which we can see in the first two quarters because of all the global things however it is moving. But we expect it to pick up as we move on towards the year end.
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