Supriya Lifescience: Margin Collapse Triggers 20% Crash

Supriya Lifescience (NSE: SUPRIYA ), an active pharmaceutical ingredient (API) maker, hit its 20% lower circuit today and closed at ₹695.70, down ₹173.90. The trigger was its Q2 FY27 results, where revenue grew only 3.2% and EBITDA margin fell to about 22% from roughly 36% a year ago. The balance sheet and capacity expansion are positives, but the company’s FY27 guidance now looks very hard to reach. Today’s move: It fell from about ₹869.60 to the 20% lower circuit at ₹695.70. That is about 36% below its 52-week high of ₹1,085, with market cap near ₹5,600 crore. It trades below all its key moving averages, and MarketsMojo rates it Sell. Q2 FY27 results: Revenue was ₹206.3 crore, up 3.2% year-on-year and 8.7% sequentially. Net profit was ₹29.25 crore, down about 42% from ₹50.4 crore a year ago, though up from ₹24.0 crore in Q1. EBITDA margin was 22.0% and PAT margin 14.2%. First half: H1 revenue rose 14.8% to ₹396 crore, but EBITDA fell 25.3% to ₹92.9 crore. EBITDA margin dropped 1,261 basis points to 23.4% from 36.1%. Guidance looks stretched: Management had targeted about ₹1,000 crore revenue and a 32-35% EBITDA margin for FY27. To get there, H2 revenue would need to be about ₹604 crore, roughly 46% above the Q2 level Cost pressure: In Q1, higher solvent and power costs added about ₹10.5 crore of expenses, and water shortages from delayed monsoon rains deferred about ₹35 crore of sales. Business: It makes APIs at its Lote Parshuram plant in Maharashtra, with exports about 81% of revenue. Capacity was expanded from 597 to 932 KLPD in 2025, and it is widening its customer base in Japan, the EU and the US. A new Chief Operating Officer, Mangesh Vaze, joined on Nov 6.