Improvement in Unichem, the integration of which has weighed on profitability lately, could be a key factor driving this margin expansion. The management expects Unichem’s Ebitda margin to reach 12-13% in FY27, from about 8% currently. Unichem’s manufacturing facility in Ireland has been closed, and production has been shifted to India – a move the management estimates will generate annual savings of ₹40-50 crore. Plus, a large part of the integration, technology transfer and restructuring costs have already been incurred. In Q4FY26 alone, Unichem incurred an additional ₹10-12 crore of R&D and technology-transfer expenses. As these costs normalize, earnings should improve.
