Event Type and Timing:

  • Q2 FY27 Earnings Conference Call held on Friday, October 30, 2026
  • The call was conducted to discuss quarterly results for Q2 and H1 FY27 ended September 30, 2026

Management Participants:

  • Dr. Yasir Rawjee – Managing Director and Chief Executive Officer
  • Mr. Tushar Mistry – Chief Financial Officer
  • Ms. Soumi Rao – Senior General Manager – Corporate Communications

Availability of Materials:

Financial Performance Highlights (Q2 FY27):

  • Revenue from operations: INR682 crores, up 16% YoY
  • Gross profit: INR439 crores, up 29.5% YoY
  • Gross margins: 64.4%, up 420 bps QoQ and 670 bps YoY
  • EBITDA: INR285 crores, up 47% YoY
  • EBITDA margins: 41.8%, up 520 bps QoQ and 880 bps YoY
  • Adjusted EBITDA margin (excluding one-time income): approximately 39.5%
  • PAT: INR197 crores with PAT margins at 28.9%, up 390 bps QoQ and 680 bps YoY
  • One-time income components: validation supply of complex product and income accrual from customer (~INR24-25 crores)

Business Segment Performance:

  • Non-GPL business grew 20.8% YoY and contributes 79% of overall revenues
  • GPL revenues recorded marginal growth of 1% YoY
  • Generic API business grew 11% YoY
  • CDMO business revenue: INR50 crores, up 32.3% QoQ and nearly 80% YoY
  • Therapeutic mix: CVS and CNS contributed 50% to top line; Chronic therapies contributed 67%

H1 FY27 Performance:

  • Revenue from operations: INR1,322 crores, growth of 11.1% YoY
  • Gross profit: INR825 crores, up 22.9% YoY
  • Gross margins: 62.3%, up 590 bps YoY
  • EBITDA: INR519 crores, up 38.4% YoY
  • EBITDA margin: 39.3%, up 780 bps YoY
  • PAT: INR357 crores with PAT margins at 27%, up 590 bps YoY
  • R&D expenditure: INR51 crores (3.9% of sales)
  • Capex: INR190 crores

Guidance and Outlook:

  • FY27 revenue growth guidance: 10% to 12%
  • FY27 EBITDA margin guidance: 35% to 36%
  • Full year GPL revenues expected: INR700-750 crores
  • CDMO business expected to double in next 3-4 years, contributing 12-15% of overall revenues

Strategic Updates:

  • Solapur facility Phase 1 expected to become operational in Q3 FY27
  • R&D center at Taloja progressing well, expected completion early next year
  • Pipeline: Over 630 DMF and CEP filings globally as of September 30, 2026
  • High potent API portfolio: 30 new products in active grid with total addressable market of $86 billion
  • 14 products validated
  • 7 in advanced stages of development
  • 9 progressing through lab development
  • Formulation CRO acquisition: Planning 25-30 dossiers in next 3 years with 10-12 filings annually
  • Technology platforms: Flow chemistry (5 projects in 18-24 months), pellets (15 products in development), IQGenX platform

Balance Sheet and Cash Flow:

  • Net debt-free company
  • Strong free cash flow of INR270 crores
  • Cash and cash equivalents including short-term investments: INR1,012 crores as of September 30, 2026

Operational Highlights:

  • Capacity utilization: Ankleshwar contributes 65% of revenue
  • Input cost management: Successfully passed on raw material price inflation to customers
  • Fuel strategy: Shifted to bio-briquettes from gas, reducing operational costs
  • Solvent costs: Approximately 10-12% of raw material cost, 7-8% of COGS

Additional Notes Section

  • The document includes the full transcript of the earnings conference call
  • Forward-looking statements were made regarding plans, strategies, and future performance
  • The company indicated that no unpublished price sensitive information (UPSI) was shared during the call
  • Management addressed questions on margin sustainability, pricing environment, capacity constraints, and growth strategies