• The document is a transcript of the Q1 FY27 Earnings Conference Call held on Tuesday, July 21, 2026, discussing the financial performance for the quarter ended June 30, 2026.
  • The call was moderated by Ms. Prachi Ambre from MUFG Intime. Management participants were Mr. Anil Jain, Managing Director, and Mr. Rohan Parekh, Chief Financial Officer.
  • The stated purpose was to discuss Q1 FY27 financial results and provide a strategic business update.

Financial Highlights Discussed:

  • Q1 FY27 Revenue: INR 165.6 crores, compared to INR 148.8 crores in Q1 FY26 (11.3% YoY growth) and INR 153.1 crores in Q4 FY26 (8.2% QoQ growth).
  • Gross Profit: INR 80.4 crores, up 16.2% YoY from INR 69.1 crores. Gross Margin expanded 210 bps to 48.3%.
  • EBITDA Margin: 17.8%, an improvement of 70 bps YoY from 17.1% in Q1 FY26 and 110 bps sequentially from Q4 FY26.
  • PAT from continuing operations: INR 13.9 crores, up 14.1% YoY from INR 12.2 crores, with a PAT margin of 8.4%.
  • Segment-wise Revenue: Domestic API was a key driver at INR 92.3 crores (27% YoY growth). Export business contributed INR 50.1 crores and Formulations contributed INR 23.3 crores.
  • Balance Sheet: Net worth stood at INR 533 crores as of March 31, 2026, up from INR 466 crores. Debt-to-equity improved to 0.45 from 0.48 in FY25 and 1.19 in FY24.
  • Cash Flow: Net cash from operating activities for FY26 was INR 58.1 crores. Cash and cash equivalents ended at INR 37.2 crores, up from INR 2.6 crores.

Strategic and Operational Updates:

  • The business is strategically viewed under two verticals: API (foundation business) and Formulations.
  • API Business Expansion: Expanding into high-value science-led APIs like Peptides and Oncology. Four peptide molecules developed, with two scaled to pilot level and six more under development.
  • New Facilities: A dedicated peptide manufacturing facility with a capacity of ~250 kg per annum is targeted for commissioning by Q4 2027. A dedicated oncology API manufacturing facility is targeted for commercialization by Q4 2028.
  • Formulations Business: Shifting mix towards high-margin branded and specialized products. Bajaj Healthcare became the first company in India to secure SEC recommendation for manufacturing and marketing of Cenobamate Tablets. Bioequivalence studies for Suvorexant Tablets are completed, with regulatory approval procedures underway.
  • Bajaj Oncocare: The dedicated oncology platform launched in 2024 has a presence across 23 states and 3 union territories with 15+ brands. The company was the first in India to launch Posaconazole 300 mg tablet.
  • Licensing & Supply: Secured exclusive licensing rights from the innovator for manufacturing and commercializing Magnesium L-Threonate capsules (Magtein). Also supplying this nutraceutical to the US patent holder.
  • R&D: The DSIR-approved R&D centre at Savli is being expanded with a new 10,000 sq. ft. facility expected to be operational by August 2026, housing 100+ researchers. R&D spending scaled from 0.4% of sales in 2024 to 2.2% in 2026.
  • Acquisition: The acquisition of the GenRx Pharmaceutical manufacturing facility in Nashik is under the NCLT approval process. Commercial production is expected to commence in H2 2027.

Guidance & Outlook:

  • Management provided revenue growth guidance of 10% to 15% for FY27.
  • Expects a similar growth rate for profits.
  • Long-term (3-year) revenue target is around INR 900-1000 crores.
  • Expects EBITDA margins to be in the range of 18% to 20% going forward.
  • The revenue mix is expected to normalize, with exports growing to 30-35% of total revenue in the future.

Q&A Session Key Points:

  • API Prices: Were stable in Q1 compared to the previous quarter.
  • Domestic API Growth: Primarily driven by volume growth.
  • Capex: An annual allocation of INR 40-50 crores is planned for the next few years.
  • Peptide Facility: The first production will be Semaglutide. At peak utilization, the facility is expected to generate INR 200-300 crores revenue with an 18-20% EBITDA margin.
  • Receivables Days: Improved to 131 days in Q1 FY27 from 145 days in FY26, with a target of 110-120 days.
  • CDMO Progress: Six CEP approvals received recently; first revenue from these molecules expected by end of FY28.
  • Cenobamate Commercial Opportunity: INR 10-12 crores revenue expected in FY27; company has tied up with eight Indian companies for marketing.
  • Backward Integration: Working on 8-10 molecules, which contribute 20-25% of revenue; expected to yield a 1-2% margin improvement. A patented Vitamin C fermentation project with ICT is expected to be complete in 2029.
  • Magnesium L-Threonate: Contributed 10% of total revenues in FY26; expected to grow 15-20% in FY27. Plans to launch formulations with Indian partners in Q3 FY27.

Additional Notes Section

  • The transcript was submitted to the exchanges in compliance with Regulation 30 of SEBI (LODR) Regulations, 2015, via a letter dated July 27, 2026 (Ref: BHL/ STEX 26/ 2026-27).
  • The transcript is also available on the company's website at https://www.bajajhealth.com/stock-exchange-intimation-2026-27/.
  • The call contained forward-looking statements based on management's expectations and involved risks and uncertainties.