Management Commentary

Dr. Sachin Patel, Managing Director, commented that the company concluded the fiscal year on a strong note with sustained growth trajectory. Sales volumes remained robust driven by steady market demand, translating into higher revenue growth and expanded margins through operational efficiencies.

Quarterly Financial Performance (Q4 FY26)

  • Income from Operations: ₹44.23 crore (up 17.22% YoY from ₹37.74 crore in Q4 FY25)
  • Total Income from Operations: ₹44.23 crore
  • Cost of Materials Consumed: ₹10.05 crore (vs ₹6.85 crore in Q4 FY25)
  • Changes in Inventory: (₹6.50) crore (vs (₹0.63) crore in Q4 FY25)
  • Employee Cost: ₹3.79 crore (vs ₹3.14 crore in Q4 FY25)
  • Other Cost: ₹17.52 crore (vs ₹12.33 crore in Q4 FY25)
  • Total Expenditure: ₹24.87 crore
  • EBITDA: ₹19.36 crore (up 20.71% YoY from ₹16.04 crore)
  • EBITDA Margin: 43.77% (expanded 127 bps from 42.50% in Q4 FY25)
  • Other Income: ₹0.92 crore
  • Depreciation: ₹4.04 crore (vs ₹1.23 crore in Q4 FY25)
  • Interest: ₹1.91 crore (vs ₹0.07 crore in Q4 FY25)
  • Profit Before Tax: ₹14.34 crore (down 10.88% from ₹16.09 crore in Q4 FY25)
  • Tax: ₹3.45 crore
  • Profit After Tax: ₹10.89 crore (down 9.22% from ₹12.00 crore in Q4 FY25)
  • PAT Margin: 24.62% (declined 717 bps from 31.79% in Q4 FY25)
  • EPS: ₹1.00 (down 9.09% from ₹1.10 in Q4 FY25)

Annual Financial Performance (FY2025-26)

  • Income from Operations: ₹165.86 crore (vs ₹150.80 crore in FY2024-25)
  • EBITDA: ₹75.53 crore (vs ₹68.84 crore in FY2024-25)
  • EBITDA Margin: 45.55% (vs 45.65% in FY2024-25)
  • Other Income: ₹2.43 crore
  • Depreciation: ₹12.92 crore (vs ₹5.37 crore in FY2024-25)
  • Interest: ₹2.95 crore (vs ₹0.36 crore in FY2024-25)
  • Profit Before Tax: ₹62.09 crore (vs ₹65.54 crore in FY2024-25)
  • Tax: ₹15.41 crore
  • Profit After Tax: ₹46.68 crore (vs ₹48.77 crore in FY2024-25)
  • PAT Margin: 28.15% (vs 32.34% in FY2024-25)
  • EPS: ₹4.28 (vs ₹4.48 in FY2024-25)

Balance Sheet Highlights (as on 31st March 2026)

  • Total Equity & Liabilities: ₹503.43 crore (vs ₹301.31 crore as on 31st March 2025)
  • Shareholders Funds: ₹287.77 crore (vs ₹248.38 crore)
  • Share Capital: ₹10.90 crore (unchanged)
  • Reserves & Surplus: ₹276.87 crore (vs ₹237.49 crore)
  • Non-Current Liabilities: ₹136.51 crore (vs ₹32.37 crore)
  • Borrowings: ₹128.06 crore (vs ₹29.64 crore)
  • Current Liabilities: ₹79.15 crore (vs ₹20.56 crore)
  • Total Assets: ₹503.43 crore (vs ₹301.31 crore)
  • Non-Current Assets: ₹414.64 crore (vs ₹249.34 crore)
  • Property Plant & Equipment: ₹286.92 crore (vs ₹40.58 crore)
  • Capital Work in Progress: ₹121.13 crore (vs ₹184.41 crore)
  • Current Assets: ₹88.78 crore (vs ₹51.97 crore)
  • Inventories: ₹15.42 crore (vs ₹5.05 crore)
  • Trade Receivables: ₹60.92 crore (vs ₹31.24 crore)
  • Cash & Cash Equivalents: ₹3.12 crore (vs ₹11.69 crore)

Strategic Acquisitions

Sanofi Portfolio Acquisition

  • Deal Value: ~€158 million (funded via debt & equity mix)
  • Portfolio Revenue: ~€62 million (FY2025 actuals)
  • Assets Acquired: 13 established brands across tuberculosis & anti-infectives
  • Key Molecules: Levofloxacin, Rifampicin, Rifapentine (WHO Essential & EU Critical Medicines)
  • Geographic Reach: 55+ countries (Europe, MEA & other markets)
  • Retail Channel Contribution: ~70% of revenue
  • Structure: Asset acquisition (Brands + Marketing Authorizations + Dossiers + Inventory) - no manufacturing capex or employee transfer
  • Strategic Rationale: Builds intermediates → API → finished dosage integration, leverages fermentation strength, provides immediate access to regulated markets
  • Financial Impact: Expected to be EPS accretive with healthy gross margins; additional upside from API integration, cost optimization & dormant MA reactivation

MicroBiopharm Japan Acquisition

  • Deal Value: JPY 21.5 billion (~₹1,300 crore)
  • Stake Acquired: 100% via wholly owned SPV in Japan
  • Seller: T Capital Partners (Japan-based PE Fund)
  • Expected Closing: Q2 FY2027 (subject to regulatory approvals)
  • Revenue: JPY 9.5 billion (~₹575 crore) (FY26E)
  • Strategic Benefits:
  • Broadens API and intermediates portfolio across oncology, immunosuppressants, and peptides
  • Serves Top 6 global pharma customers for 20+ years with 40% revenues from outside Japan
  • Proprietary technologies including P450 enzyme library, Plasmid DNA, ADC Conjugation
  • Accelerates transition to fermentation-based CDMO with expanded biologics & precision fermentation capabilities

Operational Updates

  • R&D Spend: Approximately 9% of topline in FY26
  • R&D Unit: Commissioned as per international standards
  • API Unit: New unit operational as part of forward integration strategy
  • Fermentation Capacity: Expanding with additional capacity for newly developed products
  • Current Product Portfolio: Rifamycin S and Rifamycin O with capacities up to 990 KL
  • Manufacturing: State-of-art facilities at Vapi, Gujarat using aerobic bacteria for fermentation

Expansion Initiatives

  • Hybrid Power Plant: 18MW wind-solar hybrid project for captive consumption
  • Strategic Benefits: Reduces power costs and grid dependence, lowers carbon footprint, supports ESG goals
  • Geographic Expansion: Targeting export opportunities and strategic locations in India
  • Growth Strategy: Focus on both organic and inorganic opportunities in specialty chemical space