Kwality Pharmaceuticals’ shares surge as it revises its FY27 revenue forecast above ₹700 crore, driven by robust profit growth and promising new biologics and hormone projects, signalling a rapid expansion phase.
Kwality Pharmaceuticals’ shares hit the upper circuit after the Amritsar-based company lifted its FY27 revenue outlook to more than ₹700 crore, up from a previous target of ₹650 crore, alongside stronger profit and margin ambitions. The revised guidance, outlined in its Q1 FY27 investor presentation, suggests management believes the business is now converting capacity expansion into faster earnings growth.
The latest outlook follows a period of brisk operational improvement. Business Standard reported that Kwality posted a 74.6% rise in net profit to ₹25.3 crore in the March quarter, while revenue climbed 35.81% to ₹157.11 crore. For the full year FY26, net profit rose 69% to ₹67.35 crore on revenue of ₹503.08 crore, underscoring the momentum behind the higher FY27 target.
Management is now guiding for EBITDA of ₹189 crore to ₹196 crore-plus in FY27, implying a margin of about 27% to 28% or more, compared with a prior FY26 margin target of 23.5%. PAT is expected to rise to at least ₹109 crore, a sharp jump from ₹67 crore in FY26. The company says the improvement is being driven by a richer product mix and better operating leverage, rather than one-off gains.
That narrative is reinforced by the company’s recent operating history. Trade Brains said revenue has roughly doubled from ₹251 crore in FY23 to ₹503 crore in FY26, while PAT increased from ₹19 crore to ₹67 crore over the same period. The company has also tightened working capital, with inventory days falling and the cash conversion cycle improving materially as utilisation across its plants has increased.
Investors are also watching Kwality’s push into biologics and hormones. Related investor materials cited by Scanx Trade and filing disclosures show development work on biosimilars, including Erythropoietin, Pembrolizumab, Nivolumab and Pertuzumab, alongside a large hormone portfolio. The company says the hormone unit should be ready in the second half of FY27, while the biologics and hormone businesses are not yet included in its FY29 revenue goal of above ₹1,000 crore, leaving room for upside if execution remains on track. The main question now is whether the raised guidance can be delivered as the new projects move from build-out to commercial production.
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