Kwality Pharmaceuticals Posts Strong Q2 FY26 Performance; Q3 Outlook Bright with Sequential Growth

Kwality Pharmaceuticals declared a strong financial performance for Q2 FY26. The company reported a significant 66% year-on-year increase in consolidated net profit, reaching ₹141.2 million, driven by expanding operations and improved cost efficiencies. Revenue for the quarter rose by 23.3% year-on-year to ₹1.11 billion, reflecting strong sales, especially in international markets.

EBITDA for Q2 surged 35% compared to the previous year, with margins improving to 22.5%, signaling enhanced operational leverage. The company is on track for continued growth, projecting Q3 FY26 revenue around ₹1.4 billion and expecting EBITDA to increase sequentially, supported by optimized capacity utilization and a diversified product mix.

Looking back at Q2 FY26, key financial metrics highlight steady growth: revenue expanded notably, net profit showed substantial improvement despite some quarterly fluctuations, and operating efficiency remained a focus with sustained EBITDA margins around 22%. The company continues to invest robustly in R&D and manufacturing capabilities, aiming to maintain momentum and exceed full-year revenue targets exceeding ₹2,500 crore while sustaining double-digit profitability.

Important Points from Q2 FY26 and Q3 Outlook

- Q2 FY26 net profit rose 66% YoY to ₹141.2 million.  
- Q2 revenue grew 23.3% YoY to ₹1.11 billion.  
- EBITDA increased 35% YoY with margins improving to 22.5%.  
- Q3 FY26 revenue expected around ₹1.4 billion.  
- Q3 EBITDA projected to increase sequentially.  
- Strong international market sales boosted growth.  
- Ongoing investments in R&D and manufacturing expansion.  
- Full-year revenue target for FY26 above ₹2,500 crore with double-digit profit margins.  

This solid quarter establishes Kwality Pharmaceuticals as a growing player in the global pharmaceutical sector, leveraging product expansion and operational efficiency. The company’s strategic investments position it well for sustained growth and shareholder value creation.

Sources: NSE Circular, Reuters, Kwality Pharmaceuticals official releases, Moneycontrol, ScanX Trade, Business Standard.