Profit Before Tax (PBT): INR27.6 crores (up from INR10.8 crores)
PBT Margin: 10.95% (up from 5.27%)
Profit After Tax (PAT): INR20.5 crores (up from INR8 crores)
PAT Margin: 8.13% (up from 3.90%)
Full Year FY26 Performance (vs FY25):
Revenue: INR940.50 crores (up from INR820 crores)
EBITDA: INR152.9 crores (up from INR138.6 crores)
EBITDA Margin: 16.26% (down from 16.91%)
Profit Before Tax (PBT): INR85.5 crores (down from INR94.4 crores)
Profit After Tax (PAT): INR63.2 crores (down from INR69.9 crores)
PAT Margin: 6.72% (down from 8.53%)
Operational and Business Updates
Indore CMO Facility:
Reached 30% capacity utilization by year-end as committed
Achieved EBITDA breakeven in Q4 FY26
40 product tech transfers completed with another 27 under development and stability testing
Over 200+ state FDA approvals obtained
More than 20 Indian pharma companies have audited or are actively using Indore as CMO base
EU GMP audit completed by Portuguese Competent Authority in first week of December 2025
Certificate pending, expected to open multiple EU markets
International Business Transformation:
Transitioning from distributor-led model to IP-holding model through Gufic Ireland for EU market
New product approvals received in Q4 in Myanmar, Philippines, South Africa, Colombia, Germany, and Ecuador
Dossiers filed in 18 new countries for complex injectable molecules
Partnership with major global health organization for complex injectable asset, providing access to public health procurement across 109 countries
Addressable market remains 824 million across select molecules in identified geographies
Domestic Business Restructuring:
Working capital reset in Critical Care cluster - shifted from direct hospital billing (140-150 days receivables) to CFA-led stockist-driven distribution
Transition caused INR22 crores revenue impact spread across Q2, Q3, and Q4 FY26
Collection now essentially complete, not expected to recur in FY27
Product Performance and Launches:
Women's health platform (fertility and gynecology) delivered strongest year ever
Reproductive immunology franchise in Ferticare achieved category leadership
Gonadotropin flagship hit highest ever annual sales milestone
New hormone introduced 2 years ago crossed annual target and ranked among best new introductions in segment by IQVIA
Zenova's power brands continued compound growth
Botulinum toxin now firmly number 2 brand in India with approximately 23% market share
New Partnerships and Licensing:
Signed in-licensing agreement with leading Canadian aesthetics company for fillers and biostimulators
Deal fills gap in aesthetic portfolio, provides credible filler offering
Launch preparations underway targeting Q3 or Q4 FY27
Licensing is for India market only initially
GLP-1 Opportunity:
Working on cartridge and pen type from Navsari factory
Signed agreement with another player for lyophilized vial form from Indore facility
Focus is purely as CDMO/CMO partner
Revenue potential not quantified as it depends on partners' front-end efforts
Financial Position and Debt:
Total gross debt: Approximately INR400 crores
Expected to remain at current level due to working capital requirements for growth
Long-term debt reducing year-over-year
Cash and cash equivalents: INR75 crores (as of March 2026 balance sheet)
Replacement capex of around INR20 crores year-over-year expected
No greenfield capex foreseen for next 2 years
Strategic Investments:
Investment of INR6.5 crores in Saraswat Bank cooperative shares (face value INR10 each)
Rationale: 15% dividend history vs 8% borrowing cost, maintaining banking relationship
Total exposure with Saraswat Bank: INR250 crores (including fund-based, non-fund-based, and term loan)
Interest rates: Working capital at 8.2%, term loan and WCDL at 8%
Other banking relationships: HDFC Bank, ICICI Bank, and Axis Bank in consortium
Management Guidance and Outlook
Revenue Guidance:
15% year-over-year revenue growth expected for FY27
Margin Guidance:
Gross margin improvement of 0.5% to 1% year-over-year expected
FY27 EBITDA margin expected to be around 18% (up from 16.26% in FY26)
Further improvement of 0.5% to 1% year-over-year expected, potentially reaching above 20% by 2030
Navsari margin expected to remain around 18-18.5%
Indore margin expected to reach 31-32% at full utilization
Business Mix Expectations:
At peak: Domestic 40-45%, CMO 15-18%, Export 30%+
Current mix: Export 20-22%, CMO 18-19%, Domestic 48-50%, APIs and tenders remainder
Product Pipeline:
INR20-30 crores of new launches expected annually
Net delta of INR20-25 crores after accounting for tail-end molecule discontinuations
Potential blockbuster molecules expected in FY28/FY29 for osteoarthritis, pain management, and infertility
Aztreonam-avibactam launched this week, expected to show prominence from Q2 FY27
R&D Focus:
Spending 8-10% of top line revenue on R&D annually
Focus on peptide development and API self-reliance
Target to increase in-house API production from current 35% to 50% eventually
Working on synthetic peptides for gynecology, aesthetics, and anti-infective portfolios
US FDA Plans:
Targeting US FDA approval by FY29
Batches scheduled for July and August 2026 to trigger US FDA inspection
Approach: Start as CMO, then CDMO with well-defined risks
No compromise on other growth markets (Europe, Brazil, South Africa, Canada, Far East)
Division-wise Performance Insights
Botulinum Toxin Business:
Contributes approximately 3.5% to total revenue
Strong growth in FY26
Therapeutic franchise expanding into urology, ophthalmology, pain management, and neurosurgery
Cash Flow Patterns:
Domestic sales: 30-45 days collection
CMO business: 90-120 days collection
Critical care division: 12-13% cash flow generation of total sales
Capacity Utilization:
Indore facility at 30% utilization, targeting further scaling
Tech transfer process continuous between Navsari and Indore facilities
Major focus on complex injectable depot and liposomal products at Indore
