Company and Document Details

Business Performance Highlights

Overall Performance

  • Achieved highest-ever Q1 revenue of ₹7,100 crores (₹7,119 crores as per financial highlights)
  • Revenue growth of 2% YoY (4% after accounting for accounting change)
  • Record first quarter provides strong start to FY27

One India Business

  • Highest ever quarterly revenue with 12% YoY growth
  • Branded prescription business grew 15.4% YoY as per IQVIA data
  • Chronic portfolio mix strengthened to 60.4% YoY
  • Added 2 new brands to ₹100+ crores club, taking total to 33 brands
  • 23 brands in IPM top 300 brands
  • Foracort maintained position as number 1 respiratory brand in IPM and ₹1,000+ crores franchise
  • Largest pharma company in terms of volume with 2 billion+ unit sales in IPM (IQVIA MAT June '26)

Therapy-wise Performance (IQVIA data)

  • Respiratory: 15% growth
  • Anti-diabetes: 43% growth
  • Cardiac: 20% growth
  • Urology: Double-digit growth

New Product Launches in India

  • Respiratory: Duolin Synchrobreathe (breath-actuated inhalation platform), Bilafav M (allergic rhinitis management)
  • Obesity: Yurpeak (tirzepatide, collaboration with Eli Lilly) - delivered strong performance, approximately ₹80 crores in Q1
  • Immunology: UPADACITP (chronic inflammatory and autoimmune disorders)
  • Wellness: Byefilm (nasal hygiene range)
  • Trade generics: 3 new launches

Consumer Health Business

  • Nicotex, Omnigel and Cipladine maintained number 1 positions in their segments
  • Healthy secondary growth
  • Operating profitability improved

North America Business

  • Revenue: $162 million (₹ equivalent not specified)
  • Number 1 position in US Albuterol MDI market with 21% market share (IQVIA week ending June 2026)
  • Successful launch of generic Ventolin following regulatory approval
  • Recent launches: Nintedanib, Dapagliflozin, Liraglutide
  • Expected sequential growth trajectory supported by upcoming launches

Upcoming US Pipeline

  • 4 significant launches planned for remainder of FY27
  • 3 respiratory assets including generic Advair
  • 1 key peptide opportunity
  • 2 respiratory assets filed from US manufacturing facilities
  • 1 respiratory asset filed from Goa facility

South Africa Business

  • Private market: 6.5% secondary growth, outperforming market growth of 5.7% (IQVIA MAT)
  • Tender business declined
  • Currency impact due to hedging

EMEU Business

  • 5% YoY growth in USD terms
  • Margin stability maintained
  • Growth driven by DTM and B2B segments

Financial Highlights

Revenue and Profitability

  • Revenue: ₹7,119 crores
  • EBITDA margin (excluding other income): 16.7%
  • Gross margin: 62.5%
  • Profit after tax: ₹789 crores (11% of sales)
  • Effective tax rate: 27%

Accounting Change

  • Effective 1st April 2026, certain marketing and proportional expenditures presented as reduction from revenue instead of operating expenditure
  • Impact: Reported growth of 2% would be 4% after adjustment
  • Primarily affected South Africa business presentation

Expenses and Investments

  • Total expenses: ₹3,260 crores (8.3% increase over previous quarter)
  • R&D investment: ₹486 crores (6.8% of revenue)
  • Investments directed towards product filing and key development programs

Cash Position and Capital Allocation

  • Debt (including lease liabilities): ₹600 crores
  • Net cash equivalent: ₹9,494 crores
  • Dividend payment: ₹1,050 crores
  • Capex increased for organic growth
  • Exploring differentiated portfolio acquisitions and in-licensing opportunities

Regulatory Updates

  • US FDA completed routine GMP inspection and PAI at Verna, Goa facility - classified as VAI
  • US FDA concluded routine GMP inspection at Invagen facility, New York - one Form 483 observation
  • Expecting reinspection of Indore facility soon

Management Outlook and Guidance

FY27 Guidance Maintained

  • EBITDA margin: 18.5-20%
  • North America exit run rate: $1 billion

Business Priorities

  • One India: Sustain growth momentum, outperform market, strengthen chronic therapies
  • North America: Drive growth through new product introductions
  • South Africa: Grow faster than market in private sector
  • EMEU: Drive top-line growth while maintaining strong margin trajectory

Management Transition

  • Ashish Adukia transitioning to new role
  • Dinesh Jain appointed as new Global CFO (30+ years with company)

Additional Operational Details

Margin Impact Factors

  • Product mix effects
  • War-related costs (estimated 1-2% of revenue impact)
  • Inventory-related charges (higher than normal write-offs)
  • Phasing of certain incentives
  • PLI incentives: Minimal in Q1, expected to accrue in later quarters as PLI molecule sales achieved

Lanreotide Update

  • Two-pronged approach: Pharmathene remediation and tech transfer to US site
  • Timing fluid due to regulatory dependencies
  • Not included in Q4 projections

Competitive Position

  • Ventolin: 6-month CGT exclusivity, no current competition expected
  • Peptide opportunity: Good chance of being first to market
  • Advair: 3-4 competitors in market

Volume Growth

  • Strong volume expansion in India business
  • Ventolin scale-up expected towards end of financial year