How Did RPG Life Sciences Maintain Growth Momentum in Q2 FY26 Despite Margin Pressure?
RPG Life Sciences Ltd delivered a steady performance in the second quarter of FY26, reporting a rise in profit despite challenging operating margins. The company's focus on domestic formulations and cost discipline helped sustain growth even as raw material expenses continued to weigh on profitability.
For Q2 FY26, the pharma company announced a net profit of ₹37 crore, up 6% year-on-year from ₹24.2 crore in the same quarter of the previous year. Revenue climbed 5.5% YoY to ₹237 crore, indicating consistent demand across key therapeutic segments. However, EBITDA declined 15% to ₹39 crore as input costs and marketing expenses saw a sequential uptick.
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The EBITDA margin stood at 21.5%, down from 24.7% YoY, reflecting higher operating costs. The management attributed this dip to inflationary pressure in APIs and an increase in promotional expenses. Nevertheless, RPG Life Sciences maintained its commitment to investing in research-driven growth and capacity optimization, which could support long-term margin stability.
RPG Life Sciences Q2 FY26 – Key Financial Metrics
| Metric | Q2 FY26 | YoY Change |
|---|---|---|
| Revenue | ₹237 Cr | ↑ 5.5% |
| Net Profit | ₹37 Cr | ↑ 6.0% |
| EBITDA | ₹39 Cr | ↓ 15% |
| EBITDA Margin | 21.5% | ↓ from 24.7% |
The company’s domestic formulations segment remained its growth driver, while the international formulations business faced moderate headwinds due to delayed regulatory clearances. RPG Life Sciences continues to emphasize operational efficiency and brand visibility to maintain market share in chronic therapy categories.
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On the outlook front, management remains cautiously optimistic. New product launches in cardiovascular and gastrointestinal therapies are expected to support revenue visibility. The company also highlighted ongoing investments in digital marketing and API backward integration as strategic levers for FY26 and beyond.
Investor Takeaway
Indian-Share-Tips.com Nifty Expert Gulshan Khera, CFP®, who is also a SEBI Regd Investment Adviser, observes that RPG Life Sciences has shown resilience with modest revenue expansion and stable profitability amid sectoral challenges. Despite margin contraction, the company’s focus on R&D and new launches bodes well for medium-term growth. Investors should track EBITDA recovery and export market normalization before taking fresh positions.
Discover more pharma insights and free expert analysis at Indian-Share-Tips.com, which is a SEBI Registered Advisory Services.
Related Queries on RPG Life Sciences
- What Drove RPG Life Sciences’ Profit Growth in Q2 FY26?
- Why Did RPG Life Sciences’ EBITDA Margin Decline Despite Revenue Rise?
- How Will RPG Life Sciences’ New Product Launches Impact FY26 Earnings?
SEBI Disclaimer: The information provided in this post is for informational purposes only and should not be construed as investment advice. Readers must perform their own due diligence and consult a registered investment advisor before making any investment decisions. The views expressed are general in nature and may not suit individual investment objectives or financial situations.
