Ambalal Sarabhai Enterprises Ltd (500009)
Latest quarterly results (Q1 FY27)
In its latest reported quarter, Q1 FY27, Ambalal Sarabhai's revenue was ₹43.6 Cr (+8.0% year on year, -33.5% on the previous quarter), and net profit ₹4.0 Cr (-51.6% year on year); the operating margin was 10.4%.
| Q1 FY27 (₹ Cr) | Value | YoY vs Q1 FY26 | QoQ |
|---|---|---|---|
| Revenue | ₹43.6 | +8.0% | -33.5% |
| Operating profit | ₹4.5 | +211.2% | -20.3% |
| Net profit | ₹4.0 | -51.6% | -38.8% |
| EPS (₹) | 0.52 | -51.4% | -38.8% |
| Operating margin | 10.4% | — | — |
📢 Recent Corporate Announcements
Ambalal Sarabhai Enterprises reported a strong operational turnaround for the quarter ended June 30, 2026 (Q1 FY27). On a consolidated basis, total income grew 8% YoY to ₹45.59 Cr, while EBITDA surged 106% to ₹6.57 Cr when excluding a large one-time provision reversal from the previous year. Profit Before Tax (PBT) saw a substantial 263% increase to ₹4.68 Cr on a like-for-like basis. This indicates a significant expansion in operating margins from 7.6% to 14.4% YoY.
- Total Income (excluding other income) rose 8% YoY to ₹45.59 Cr from ₹42.05 Cr.
- EBITDA jumped 106% to ₹6.57 Cr, representing an improved EBITDA margin of 14.41%.
- Profit Before Tax (PBT) increased by 263% to ₹4.68 Cr on a comparable basis.
- The comparison excludes a one-time gain of ₹6.65 Cr (provision reversal) recorded in the June 2025 quarter.
- Operational performance shows significant improvement over the TTM OPM of 5.7%.
Ambalal Sarabhai Enterprises reported a consolidated revenue of ₹43.56 Cr for Q1 FY27, up 8% YoY. Net profit declined 51.6% YoY to ₹3.98 Cr, primarily due to a high base in Q1 FY26 which included a one-time 'Other Income' gain of ₹6.65 Cr from past obligations. The Electronics segment was the primary growth driver, increasing 23.2% YoY, while the core Pharmaceuticals segment remained stagnant. Operating performance was characterized by a significant inventory build-up of ₹8.87 Cr during the quarter.
- Consolidated revenue from operations increased 8% YoY to ₹43.56 Cr from ₹40.34 Cr.
- Electronics segment revenue grew 23.2% YoY to ₹18.33 Cr, now contributing 42% of total revenue.
- Pharmaceuticals segment revenue remained flat at ₹25.26 Cr compared to ₹25.46 Cr in the previous year.
- Net Profit fell to ₹3.98 Cr from ₹8.22 Cr YoY, largely due to the absence of a ₹6.65 Cr one-off gain recorded in Q1 FY26.
- Significant inventory build-up of ₹8.87 Cr recorded in Q1 FY27 compared to a build-up of only ₹0.31 Cr in Q1 FY26.
Ambalal Sarabhai Enterprises reported a consolidated net profit of ₹3.98 Cr for Q1 FY27, a 51.6% decline from ₹8.22 Cr in Q1 FY26. While revenue from operations grew 8% YoY to ₹43.56 Cr, the bottom line was severely impacted by a high base effect; the previous year's quarter included a one-time gain of ₹6.65 Cr in other income. The core Pharmaceutical segment saw EBIT margins nearly halve from 32.9% to 17.3%, although the Electronics segment showed improvement in both top and bottom lines.
- Consolidated Net Profit fell 51.6% YoY to ₹3.98 Cr from ₹8.22 Cr.
- Revenue from operations increased 8% YoY to ₹43.56 Cr, led by Electronics growth.
- Electronics segment revenue grew 23.2% YoY to ₹18.33 Cr with EBIT rising to ₹1.27 Cr.
- Pharmaceutical segment EBIT dropped 47.7% YoY to ₹4.38 Cr despite stable revenue.
- Significant inventory build-up recorded with a negative change in inventory of ₹8.87 Cr.
Ambalal Sarabhai Enterprises has responded to a BSE query regarding significant movement in its stock price. The company clarified that it is not in possession of any unpublished price sensitive information (UPSI) or impending material announcements. Management stated that the recent price movement is purely market-driven. This clarification follows a period where the stock has delivered a 66.6% return over the last six months and a 33.4% return over the last three months.
- Company confirms no unpublished price sensitive information (UPSI) exists as of August 6, 2026
- Stock price has appreciated by 66.6% over the last 6 months according to market data
- Management attributes recent price volatility to market-driven factors rather than corporate actions
- Company maintains compliance with Regulation 30 of SEBI (LODR) Regulations, 2015
Ambalal Sarabhai Enterprises has rescheduled its shareholder plant visit at the Ranoli facility from October 26, 2026, to December 1, 2026. The change was prompted by shareholder requests to avoid conflicts with the Diwali festival. The visit is scheduled for a two-hour window from 3:00 p.m. to 5:00 p.m. at the Sarabhai campus in Vadodara. Interested shareholders are required to register their participation by November 13, 2026.
- Plant visit rescheduled to December 1, 2026, from the previously announced October 26 date
- Registration deadline for shareholders is set for November 13, 2026
- The visit will take place at the Ranoli facility in Vadodara for a duration of 2 hours
- Company currently generates TTM revenue of Rs 202 Cr with a market cap of Rs 325 Cr
Ambalal Sarabhai Enterprises has scheduled a board meeting for August 12, 2026, to approve unaudited standalone and consolidated financial results for the quarter ended June 30, 2026. The company enters this quarter following a fiscal year (FY26) where it generated Rs 202 Cr in revenue and Rs 18 Cr in PAT. Investors will be monitoring if the company can improve its operating profit margin, which stood at 5.7% TTM. The trading window for designated persons remains closed until August 14, 2026.
- Board meeting scheduled for August 12, 2026, to approve Q1 FY27 results
- Trading window closed from July 01, 2026, to August 14, 2026
- Results will cover both Standalone and Consolidated financial performance
- Company reported a TTM revenue of Rs 202 Cr as of the previous fiscal year
Ambalal Sarabhai Enterprises has submitted a revised Annual Report for FY 2025-26 to correct inadvertent errors in the previous filing. The consolidated financials show a significant profit increase to ₹17.80 crore for the year, up from ₹4.93 crore in FY25, despite modest revenue growth of 3.1%. The company has scheduled its 48th Annual General Meeting (AGM) for July 30, 2026, via video conferencing. Key agenda items include the re-appointment of the Executive Chairman, Managing Director, and Whole-time Director for three-year terms starting in late 2026 and 2027.
- Consolidated Profit after Tax surged to ₹1,780.32 Lakhs in FY26 from ₹493.17 Lakhs in FY25.
- Revenue from operations grew to ₹20,227.17 Lakhs, a 3.1% increase over the previous year's ₹19,618.53 Lakhs.
- Earnings per share (EPS) improved significantly to ₹2.32 from ₹0.64 in the prior fiscal year.
- The 48th AGM is scheduled for July 30, 2026, with a cut-off date for e-voting set for July 23, 2026.
- Proposed re-appointment of Managing Director Mohal K. Sarabhai for a 3-year term effective September 21, 2026.
Ambalal Sarabhai Enterprises has released its FY 2025-26 Annual Report, scheduling the 48th AGM for July 30, 2026. The company reported a significant increase in consolidated profit to ₹17.80 crore, up from ₹4.93 crore in the previous year, with EPS rising to ₹2.32. Key agenda items include the re-appointment of the Executive Chairman, Managing Director, and Whole-time Director for 3-year terms. Additionally, the board is seeking shareholder approval for a ₹10 crore loan or guarantee to Synbiotics Limited, a related party.
- Consolidated Profit for FY26 reached ₹1,780.32 Lakhs, a 261% increase from ₹493.17 Lakhs in FY25
- Proposed loan or guarantee limit of ₹10 Crores for Synbiotics Limited under Section 185 of the Companies Act
- Re-appointment of Mr. Mohal K. Sarabhai as Managing Director for 3 years effective September 21, 2026
- Net Cash Flow from Operating Activities improved to ₹1,340.00 Lakhs in FY26 from a negative ₹1,762.31 Lakhs in FY25
- Book closure for the AGM is scheduled from July 28, 2026, to July 30, 2026
Financial Performance
Revenue Growth by Segment
Consolidated revenue from operations grew by 13.03% YoY, reaching INR 19,618.53 Lakhs in FY25 compared to INR 17,357.05 Lakhs in FY24. Segment-specific growth percentages for Pharmaceuticals and Electronics are not explicitly broken down in the provided snippets.
Geographic Revenue Split
The company operates primarily in India with a foreign subsidiary contributing INR 207.04 Lakhs in revenue, representing approximately 1.05% of total consolidated revenue. The remaining 98.95% is primarily domestic.
Profitability Margins
Gross margins are heavily influenced by 'Purchase of Stock-in-Trade' which accounts for 51.9% of revenue. Profit Before Tax (PBT) margin compressed from 3.62% in FY24 to 2.33% in FY25. Net Comprehensive Income margin stood at 2.29% for FY25.
EBITDA Margin
EBITDA (calculated as PBT + Finance Costs + Depreciation) was INR 1,310.50 Lakhs in FY25 (6.68% margin) compared to INR 1,398.25 Lakhs in FY24 (8.06% margin), showing a contraction of 138 basis points due to higher raw material and employee costs.
Capital Expenditure
The company invested INR 271.88 Lakhs in the purchase of Property, Plant & Equipment and intangible assets during FY25, a slight decrease from INR 291.12 Lakhs in FY24.
Credit Rating & Borrowing
Total borrowings increased to INR 4,858.54 Lakhs in FY25 from INR 4,508.80 Lakhs in FY24. Finance costs rose 13.5% to INR 426.48 Lakhs, reflecting an effective interest cost on average borrowings of approximately 9.1%.
Operational Drivers
Raw Materials
Raw materials and components (unspecified types) accounted for INR 1,951.70 Lakhs, representing 9.9% of total revenue.
Raw Material Costs
Raw material consumption costs increased by 28.3% YoY to INR 1,951.70 Lakhs. The company relies heavily on 'Stock-in-Trade' purchases (INR 10,196.49 Lakhs), which grew 22.2% YoY, indicating a shift toward trading or outsourced manufacturing models.
Manufacturing Efficiency
Employee benefit expenses increased by 10.8% to INR 3,070.06 Lakhs, growing slightly slower than revenue (13.03%), suggesting marginal improvements in labor productivity.
Strategic Growth
Expected Growth Rate
13%
Growth Strategy
The company is leveraging its dual presence in Pharmaceuticals and Electronics. Growth is currently driven by a 22.2% increase in stock-in-trade purchases, suggesting a strategy of expanding market reach through trading and distribution rather than just internal manufacturing capacity.
Products & Services
Pharmaceutical products and Electronic components/equipment.
Brand Portfolio
Sarabhai (implied by corporate identity and history).
Market Expansion
The company maintains a foreign subsidiary with assets of INR 560.04 Lakhs, indicating a footprint in international markets, though it currently contributes only ~1% of revenue.
Strategic Alliances
The company operates a Joint Venture which contributed a share of profit of INR 127.45 Lakhs in FY25, a significant turnaround from a loss of INR 271.15 Lakhs in FY24.
External Factors
Industry Trends
The industry is seeing a shift toward outsourced manufacturing; the company's 22.2% growth in stock-in-trade purchases aligns with this trend, though it subjects the company to higher procurement risk.
Competitive Landscape
Operates in highly fragmented and competitive markets for both generic pharmaceuticals and electronics manufacturing.
Competitive Moat
The company's moat is likely based on its long-standing brand heritage in the Indian pharmaceutical sector and its diversified presence in electronics, though current low margins suggest high competitive intensity.
Macro Economic Sensitivity
Sensitive to interest rate fluctuations as finance costs (INR 426.48 Lakhs) consume 88% of the company's PBT.
Geopolitical Risks
Exposure is limited given that 99% of revenue is domestic, though supply chains for Electronics and Pharma raw materials are often globally linked.
Regulatory & Governance
Industry Regulations
The company must comply with the Companies Act 2013, Ind AS, and SEBI regulations. It also adheres to pharmaceutical manufacturing standards and electronic waste/manufacturing norms.
Taxation Policy Impact
The company paid net direct taxes of INR 322.30 Lakhs in FY25.
Legal Contingencies
The auditors issued an unmodified opinion, and there were no qualifications or adverse remarks in the CARO reports for the companies included in the consolidation.
Risk Analysis
Key Uncertainties
The primary uncertainty is the negative cash flow from operating activities, which swung from a positive INR 888.73 Lakhs in FY24 to a negative INR 1,761.52 Lakhs in FY25, a 298% decrease in cash generation efficiency.
Geographic Concentration Risk
High concentration in India (99% of revenue).
Third Party Dependencies
High dependency on third-party suppliers for stock-in-trade, which constitutes over half of the company's revenue base.
Technology Obsolescence Risk
The electronics segment faces high technology obsolescence risk, requiring continuous product updates.
Credit & Counterparty Risk
The company made an allowance for doubtful debts of INR 19.97 Lakhs and doubtful advances of INR 154.83 Lakhs in FY25, indicating some pressure on receivable quality.
