Financial Performance Review (Q2 FY27)

Key Quantitative Figures (YoY and QoQ):

  • Revenue from Operations: ₹6,820 Million; growth of 16.0% YoY and 6.5% QoQ.
  • EBITDA: ₹2,851 Million; growth of 47.0% YoY and 21.8% QoQ.
  • PAT: ₹1,968 Million; growth of 51.3% YoY and 22.9% QoQ.
  • Gross Margin: 64.4%, an increase of 670 basis points (bps) YoY and 420 bps QoQ.
  • EBITDA Margin: 41.8%, an increase of 880 bps YoY and 520 bps QoQ.
  • PAT Margin: 28.9%, an increase of 680 bps YoY and 390 bps QoQ.

Half-Yearly Performance (H1 FY27 vs H1 FY26):

  • Revenue: ₹13,224 Million; growth of 11.1% YoY.
  • PAT: ₹3,569 Million; growth of 41.9% YoY.
  • EBITDA Margin: 39.3%, an increase of 780 bps YoY.

Balance Sheet & Cash Flow:

  • Generated strong free cash flow of ₹2,702 Million during the quarter.
  • Cash and Cash Equivalents (including short-term investments) stood at ₹10,116 Million as of September 30, 2026.
  • Return on Capital Employed (ROCE) expanded to approximately 34%.
  • Fixed Asset Turnover Ratio (FATR) was 2.1 times.

Segmental and Business Performance

Generic API vs. CDMO:

  • Generic API revenues grew 11.0% YoY, driven by stable growth across key markets (Europe, North America, Japan, LATAM, ROW).
  • CDMO business grew 32.3% QoQ and 79.9% YoY, due to strong traction in existing projects and recent launches. Several projects are in advanced stages of discussion.

GPL vs. Non-GPL Business:

  • Non-GPL business grew 20.8% YoY and now contributes 79% of total revenue.
  • GPL business reported marginal growth of 1% YoY due to inventory rationalization and contributed 21% of total revenue.

Market & Therapeutic Mix:

  • Regulated markets contributed 85% of Q2 FY27 revenues.
  • Chronic therapies accounted for 67% of Q2 FY27 revenues.

Research & Development (R&D) Update

  • Cumulative DMFs and CEPs filed across major markets reached 630 as of September 30, 2026.
  • In H1 FY27, 10 patents were filed and 3 were granted. Cumulative patent grants stood at 88.
  • Two synthetic small molecules were added to the development grid during the quarter.
  • The High Potency (HP) API portfolio has 30 products in active development.
  • The iron complexes portfolio is advancing; regulatory filing completed for one compound.
  • R&D spend as a percentage of revenue was not quantified for the quarter.

Manufacturing, Capacity, and Expansion Plans

Manufacturing Infrastructure:

  • Ankleshwar, Gujarat: Annual Installed Capacity of 950.2 KL; last USFDA inspection in January 2025.
  • Dahej, Gujarat: Annual Installed Capacity of 399.9 KL; last USFDA inspection in May 2025.
  • Mohol, Maharashtra: Annual Installed Capacity of 49.1 KL.
  • Kurkumbh, Maharashtra: Annual Installed Capacity of 24.6 KL.

Future Capacity Expansion:

  • Brownfield Expansion (Ankleshwar): Planned addition of ~100 KL capacity, operational by Q4 FY27.
  • Brownfield Expansion (Dahej): Planned addition of ~160 KL capacity, operational by Q3 FY27.
  • Greenfield Expansion (Solapur): Phase 1 (~340 KL) and Phase 2 (~125 KL) are under construction and targeted to be operational in Q3 FY27 and Q4 FY27, respectively. A Phase 3 expansion of ~535 KL is planned for FY29.
  • New R&D Facility (Taloja, Navi Mumbai): Construction is advancing as planned to enhance capabilities in flow chemistry, complex products, and oncology research.

Management Commentary

Dr. Yasir Rawjee, Managing Director & Chief Executive Officer, stated that the quarter was strong, supported by healthy demand and recent launches. He expressed confidence in sustaining momentum through ongoing capacity expansion and a healthy development pipeline.