Key Financial Figures

FY26 Performance:

  • Revenue: ₹33,653 crores (6% YoY growth)
  • EBITDA: ₹6,856 crores (4% YoY growth)
  • EBITDA Margin: 20.4%
  • Ex-gRevlimid revenue growth: 9.5% YoY
  • Gross Contribution: ₹20,165 crores (60% margin, 100 bps improvement)
  • R&D Expenditure: ₹1,590 crores (5% of revenue)
  • Net CapEx: $341 million
  • Net Cash Position: $317 million (up from $276 million in Dec'25)

Q4 FY26 Performance:

  • Revenue: ₹8,853 crores
  • EBITDA: ₹1,801 crores (20.3% margin)
  • Net Profit: ₹921 crores (2% YoY growth)
  • Ex-gRevlimid revenue growth: 15.3% YoY (7% in USD terms)
  • Gross Contribution: ₹5,424 crores
  • Gross Margin: 61.3% (153 bps QoQ improvement)
  • R&D Expenditure: ₹400 crores
  • Net CapEx: $82 million
  • Average Finance Cost: 5%

Business Segment Performance

Formulations Business (86% of total revenue):

  • Q4 Revenue: ₹7,646 crores (5% YoY growth)

API Business (14% of total revenue):

  • Q4 Revenue: ₹1,208 crores (25% QoQ growth)
  • FY26 Revenue: ₹4,047 crores (12% of total)

Geographic Performance:

  • US Formulations: Q4 revenue decreased 18% YoY to $387 million (constant currency), primarily due to high gRevlimid sales in Q4 FY25. Full year revenue was $1,631 million.
  • Europe Formulations: Q4 revenue ₹2,795 crores (30% YoY growth), €261 million vs €236 million in Q4 FY25. Achieved €1 billion annual revenue milestone.
  • Growth Markets: Q4 revenue ₹980 crores (25% YoY, 13% QoQ growth). Full year revenue ₹3,499 crores (10% growth).
  • ARV Business: Q4 revenue ₹328 crores ($36 million, 6% YoY growth). Full year revenue ₹1,384 crores ($157 million, 33% growth).
  • Specialty & Injectable: Q4 global revenue $122 million. Ex-gRevlimid, business grew 13% YoY. Full year revenue $513 million, ex-gRevlimid growth 12%.

Operational Highlights

Pen-G and 6-APA Facilities:

  • Achieved positive EBITDA contribution in Q4 FY26
  • Annualized production expected to exceed 10,000 metric tons with >80% capacity utilization
  • External sales exceeded ₹100 crores in Q4
  • FY26 EBITDA loss of approximately ₹200+ crores for Pen-G/6-APA

China Facility:

  • Expected to achieve profitable EBITDA contribution in FY27

Biosimilars Business:

  • Total investment of ~$450 million to date
  • Current portfolio includes 4 European approvals, 2 Health Canada approvals
  • Planned 2026 US filings for Omalizumab, Denosumab, and Bevacizumab
  • Targeting 7-8 products in Europe/growth markets and 2-3 products in US by 2030
  • Expected gross margins of 65%-75% in US market

Biologics CMO (TheraNym):

  • Unit 1 (60 KL capacity) commissioning by end-2026
  • Validation batches scheduled in 2027, revenue expected from 2028
  • Unit 2 (greenfield) commissioning expected in 2029, revenue from 2031
  • Three product schedules signed with MSD for commercial biological entities
  • Total planned capacity: 120,000 litres mammalian cell culture
  • Investment: ~$175 million for greenfield facility

Acquisitions and Expansion:

  • Lannett acquisition expected to close in Q2 FY27 (delayed due to 76-day US government shutdown affecting FTC)
  • Khandelwal Laboratories non-oncology acquisition completed ($32 million consideration)
  • China-OSD facility scaling up with increasing approvals for European markets

FY27 Outlook

  • EBITDA margins expected to sustain and progressively improve to north of 21%
  • US business targeting $2 billion revenue milestone (includes Lannett contribution)
  • Europe business targeting double-digit growth in constant currency terms
  • Domestic formulation business expected to grow in double digits
  • China facility targeting low double-digit EBITDA margin
  • Pen-G/6-APA expected to maintain positive EBITDA contribution

Other Key Information

  • Working capital improvement contributed to strong cash flow generation
  • Power and fuel costs increased significantly in Q4 due to Pen-G plant operations
  • 1% INR depreciation against USD translates to ~₹100 crores EBITDA impact
  • Eugia Unit III and Unit I awaiting EIR (Establishment Inspection Report)
  • Ryzneuta launch delayed; building scientific story in competitive market
  • ADQUEY (eczema drug) launch targeted for Q2 FY27