Contract drug makers (CDMO) leads on operating profit; Electronics manufacturing trails

Combined operating profit growth vs a year ago · tap a theme for its story

• Contract drug makers (CDMO)+46%Sales +18% · margin 20.0% → 24.8% · Q1 FY27Why Drug makers outsourcing & looking beyond China

  Contract drug makers (CDMO): operating profit grew 46% on 18% more sales, so its margin widened from 20.0% to 24.8%.

  Who is carrying it 4 of the 6 companies that reported Q1 FY27 grew their sales. Divi's Laboratories Ltd. alone brought 58% of the basket's extra sales, so the theme's growth leans heavily on one company.

  The exception Cohance Lifesciences Limited is the one to note: its profit fell 197% as its operating margin slipped from 20.4% to 0.3%, against the theme's run.

  What drives it Global drug companies outsourcing development & manufacturing, & buyers looking beyond China.

  The numbers behind it

  The basket, quarter by quarter: the companies' combined figures against the same quarter a year earlier (same companies both years)

  Quarter	Sales	Operating profit	Margin	Reported
  Q1 FY27	+18%	+46%	24.8%	6 of 6

  Each company

  Q1 FY27	Sales	Profit	Margin
  Divi's Laboratories Ltd.	+28%	+66%	40.7%
  Piramal Pharma Limited	+17%	–	8.6%
  Syngene International Limited	−16%	−110%	12.3%
  Neuland Laboratories Limited.	+119%	+962%	34.7%
  Sai Life Sciences Limited	+12%	+21%	26.7%
  Cohance Lifesciences Limited	−23%	−197%	0.3%

• Cables & wires+39%Sales +49% · margin 14.0% → 13.2% · Q2 FY27 · 2 of 4 reportedWhy Power, housing & data-centre construction

  Sales

  +49%

  Operating profit

  +39%

  Margin

  14.0% → 13.2%

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• Railway builders & suppliers+28%Sales +10% · margin 6.8% → 7.9% · Q1 FY27Why Government spending on lines, wagons & coaches

  Sales

  +10%

  Operating profit

  +28%

  Margin

  6.8% → 7.9%

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• Solar panel & cell makers+27%Sales +62% · margin 24.9% → 19.5% · Q1 FY27Why Rules favouring Indian-made panels & cells

  Sales

  +62%

  Operating profit

  +27%

  Margin

  24.9% → 19.5%

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• Engineering R&D services+26%Sales +15% · margin 15.8% → 17.4% · Q2 FY27 · 5 of 6 reportedWhy Global firms outsourcing product design

  Sales

  +15%

  Operating profit

  +26%

  Margin

  15.8% → 17.4%

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• Optical fibre & telecom gearLow baseSales +134% · margin 1.1% → 24.4% · Q2 FY27Why Data-centre & 5G build-outs needing fibre

  Sales

  +134%

  Operating profit

  Low base

  Margin

  1.1% → 24.4%

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• Power grid equipment+23%Sales +15% · margin 11.6% → 12.4% · Q1 FY27 · 9 of 10 reportedWhy Grid spending to carry new solar & wind power

  Sales

  +15%

  Operating profit

  +23%

  Margin

  11.6% → 12.4%

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• Defence makers+20%Sales +20% · margin 21.6% → 21.7% · Q1 FY27Why Bigger budgets & a push for Indian-made arms

  Sales

  +20%

  Operating profit

  +20%

  Margin

  21.6% → 21.7%

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• Electronics manufacturing+17%Sales +27% · margin 5.1% → 4.8% · Q1 FY27 · 5 of 6 reportedWhy Phone & appliance factories moving to India

  Sales

  +27%

  Operating profit

  +17%

  Margin

  5.1% → 4.8%

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