Hemas Holdings PLC delivered a strong second quarter, with revenue growing 17.0% YoY to Rs. 37.8 Bn in Q2 FY27 as all four sectors recorded growth, led by Hospitals (+19.3%) and Consumer Brands (+18.3%). EBITDA rebounded to Rs. 4.5 Bn, up 10.5% YoY and nearly double the first quarter. Group earnings more than doubled from Q1 to Rs. 2.0 Bn. For H1 FY27, the strong second quarter turned a 14.1% EBITDA decline at the end of Q1 into growth of 0.9%.
The Group chose to absorb much of the increase in raw material, energy and freight costs driven by the Middle East conflict, protecting consumer affordability and volumes. Gross margin declined 3.1 pp YoY to 29.7%; however, disciplined cost management kept overheads growing slower than revenue, enabling EBITDA growth. Higher finance costs, reflecting increased borrowings to fund working capital and the Twiga acquisition, together with a higher tax charge, resulted in Group earnings declining 3.0% YoY.
GROUP AT A GLANCE (Q2 FY27)
REVENUE
Rs. 37,792 Mn
+17.0% YoY
+31.4% QoQ GP MARGIN
29.7%
(3.1 pp) YoY
(0.7 pp) QoQ EBITDA
Rs. 4,498 Mn
+10.5% YoY
+99.2% QoQ GROUP EARNINGS
Rs. 2,000 Mn
(3.0%) YoY
+113.4% QoQ EARNINGS MARGIN
5.3%
(1.1 pp) YoY
+2.0 pp QoQ
GROUP AT A GLANCE (H1 FY27)
REVENUE
Rs. 66,563 Mn
+9.5% YoY GP MARGIN
30.0%
(1.6 pp) YoY EBITDA
Rs. 6,756 Mn
+0.9% YoY GROUP EARNINGS
Rs. 2,937 Mn
(9.7%) YoY EARNINGS MARGIN
4.4%
(0.9 pp) YoY
SEGMENT PERFORMANCE (YoY growth)
Consumer Brands
Q2 Revenue: Rs. 15,572 Mn +18.3%
Q2 Earnings: Rs. 1,114 Mn (30.6%)
H1 Revenue: Rs. 24,661 Mn +13.4%
H1 Earnings: Rs. 1,582 Mn (30.1%)
Sharp recovery from Q1; cost absorption weighed on margins. Life Sciences
Q2 Revenue: Rs. 18,365 Mn +16.2%
Q2 Earnings: Rs. 623 Mn (26.8%)
H1 Revenue: Rs. 34,472 Mn +5.9%
H1 Earnings: Rs. 1,267 Mn (24.2%)
Regulated pricing and LKR weakness pressured margins.
Hospitals
Q2 Revenue: Rs. 3,205 Mn +19.3%
Q2 Earnings: Rs. 265 Mn +26.9%
H1 Revenue: Rs. 6,192 Mn +15.1%
H1 Earnings: Rs. 515 Mn +14.8%
Highest growth in the Group Mobility
Q2 Revenue: Rs. 646 Mn +3.7%
Q2 Earnings: Rs. 307 Mn +23.7%
H1 Revenue: Rs. 1,229 Mn +9.9%
H1 Earnings: Rs. 627 Mn +58.2%
Higher freight yields offset impact of temporary route suspensions.
Within Consumer Brands, Beauty, Home Care and Baby Care all delivered double-digit growth, with Beauty now accounting for 20% of the home and personal care portfolio. In Bangladesh, revenue recorded single-digit growth despite a challenging macroeconomic environment, with male grooming category growing by nearly 50%. In Learning, newer adjacencies continued to gain traction, with Back-to-School and Bags volumes growing over 50% YoY. In Life Sciences, Hemas Pharmaceuticals retained its market leadership and secured six new product registrations during the quarter, while absorbing higher costs pending approval of regulated price revisions, and Morison’s own-brand volumes grew 23% YoY.
During the quarter, Hemas completed its first international acquisition, a 75% stake in Twiga Stationers & Printers Limited, a leading stationery manufacturer and exporter in East Africa. Revenue is tracking in line with projections, and Twiga provides a platform for long-term growth across the region.
Looking ahead, price revisions in pharmaceuticals, ongoing cost and productivity initiatives, and the third stage of the public sector salary revision in 2027 are expected to support margins and volumes. Hemas remains focused on its Long Range Plan targets of mid-teen compound annual growth in revenue and earnings, with 15% of revenue to be derived from international markets by FY30, and has earmarked over USD 100 Mn for new growth platforms, to be deployed with discipline.
