Company and Document Details

Management Commentary

Managing Director Rahul Nachane provided commentary on Q2FY27 performance and outlook:

  • Q2 was a strong quarter with robust demand across product segments and geographies
  • Revenue growth was volume-led, with first-half performance keeping the company on track with previous guidance
  • Phase II expansion was commissioned as per communicated timeline, with the facility now fully staffed
  • Operating costs including employee expenses, interest, and depreciation from the new plant will flow through P&L, weighing on margins over next few quarters as utilization builds
  • Expect plant utilization to reach 30-40% over next 2-3 quarters
  • Absolute profits should continue to rise as volumes from new plant scale up
  • Reasonably confident of improved profitability at consolidated level once plant reaches optimum utilization
  • New capacity will initially serve unregulated markets
  • Begun transferring European registrations to new facility, expected to complete by end of 2027
  • Filed Veterinary Master Files for nine products in US, customer expected to complete filings by December 2026
  • Expect USFDA inspection of facility following regulatory filings

Quarterly Operational Metrics

Segmental Revenue Mix (Q2FY27)

  • Animal API: 95% (vs 90% in Q2FY26, 95% in Q1FY27)
  • Human API: 3% (vs 4% in Q2FY26, 3% in Q1FY27)
  • Intermediates: 1% (vs 5% in Q2FY26, 1% in Q1FY27)
  • Formulations: 0% (vs 1% in Q2FY26, 0% in Q1FY27)

Product Concentration (Q2FY27)

  • Top 3 Products: 29% (vs 32% in Q2FY26, 31% in Q1FY27)
  • Top 5 Products: 43% (vs 46% in Q2FY26, 48% in Q1FY27)
  • Top 10 Products: 65% (vs 69% in Q2FY26, 68% in Q1FY27)

Geographic Mix (Q2FY27)

  • Asia: 41% (vs 40% in Q2FY26 and Q1FY27)
  • Europe: 9% (vs 10% in Q2FY26 and Q1FY27)
  • India: 22% (vs 29% in Q2FY26, 20% in Q1FY27)
  • ROW: 28% (vs 21% in Q2FY26, 30% in Q1FY27)
  • USA: 0% (consistent with previous quarters)

Customer Concentration (Q2FY27)

  • Top 3 Customers: 11% (vs 11% in Q2FY26, 18% in Q1FY27)
  • Top 5 Customers: 16% (vs 16% in Q2FY26, 26% in Q1FY27)
  • Top 10 Customers: 26% (vs 26% in Q2FY26, 38% in Q1FY27)

Financial Performance - Q2FY27

Profit and Loss Statement (₹ in crores)

  • Revenue from Operations: ₹158.71 (up 31.97% YoY from ₹120.26, up 14.05% QoQ from ₹139.16)
  • Other Income: ₹1.20 (down 41.46% YoY from ₹2.05, down 83.85% QoQ from ₹7.43)
  • Total Income: ₹159.91 (up 30.74% YoY from ₹122.31, up 9.09% QoQ from ₹146.59)
  • Total Operating Expenses: ₹130.64 (up 26.71% YoY from ₹103.10, up 12.74% QoQ from ₹115.88)
  • EBITDA: ₹28.06 (up 63.52% YoY from ₹17.16, up 20.48% QoQ from ₹23.29)
  • EBITDA Margin: 17.68% (up 341 bps YoY from 14.27%, up 94 bps QoQ from 16.73%)
  • Finance Cost: ₹1.12 (down 3.45% YoY from ₹1.16, up 13.13% QoQ from ₹0.99)
  • Depreciation and Amortization: ₹6.55 (up 28.68% YoY from ₹5.09, up 24.76% QoQ from ₹5.25)
  • Profit Before Tax: ₹21.60 (up 66.67% YoY from ₹12.96, down 11.76% QoQ from ₹24.48)
  • Profit After Tax: ₹16.25 (up 68.74% YoY from ₹9.63, down 11.68% QoQ from ₹18.40)

Balance Sheet Position - H1FY27

Liabilities (₹ in crores)

  • Shareholders Fund: ₹362.61 (vs ₹329.23 in FY26)
  • Non Current Liabilities: ₹67.50 (vs ₹66.25 in FY26)
  • Long Term Borrowings: ₹50.68 (vs ₹56.40 in FY26)
  • Current Liabilities: ₹197.64 (vs ₹150.01 in FY26)
  • Short Term Borrowings: ₹71.43 (vs ₹52.02 in FY26)
  • Total Equity and Liabilities: ₹627.75 (vs ₹545.50 in FY26)

Assets (₹ in crores)

  • Non Current Assets: ₹304.49 (vs ₹269.11 in FY26)
  • Net Block: ₹285.70 (vs ₹164.09 in FY26)
  • Current Assets: ₹323.26 (vs ₹276.39 in FY26)
  • Inventories: ₹118.38 (vs ₹70.28 in FY26)
  • Trade Receivables: ₹136.76 (vs ₹130.88 in FY26)
  • Cash & Bank Balances: ₹5.59 (vs ₹5.11 in FY26)
  • Total Assets: ₹627.75 (vs ₹545.50 in FY26)

Cash Flow Statement - H1FY27

Cash Flows (₹ in crores)

  • Cash Flow from Operating Activities: ₹35.80 (vs ₹43.32 in FY26)
  • Cash Flow from Investing Activities: (₹44.05) (vs (₹70.59) in FY26)
  • Cash Flow from Financing Activities: ₹10.50 (vs ₹29.55 in FY26)
  • Net Cash Flow: ₹2.24 (vs ₹2.27 in FY26)
  • Cash at Beginning of Year: ₹2.81 (vs ₹0.53 in FY26)
  • Cash at End of Year: ₹5.05 (vs ₹2.81 in FY26)

Business Overview and Strengths

Company Positioning

  • Leading animal health company with leadership in veterinary API segment
  • 95% in-house manufacturing with backward integrated facilities
  • No market rejection in 15 years
  • 13% CAGR growth

Manufacturing Capabilities

  • 5 manufacturing facilities at Tarapur & Navi Mumbai, Maharashtra
  • 20,000m² manufacturing area
  • 36m³ glass-lined reactors
  • 168kl stainless steel reactors
  • 253kl gas induction reactors
  • Reaction range: -20°C to +250°C
  • Zero liquid discharge facilities
  • Accreditations: WHO-GMP, ISO 9001:2015, ISO 14001:2015, ISO 45001:2018, cGMP

Expansion Projects

  • Completed expansion in subsidiary Macrotech
  • Additional capacities of intermediates
  • Commercial production started
  • Greenfield expansion at Tarapur with sufficient capacity for new products pipeline
  • Capex of ₹220.72 crore incurred, funded through debt and internal accrual

Historical Financial Performance

Revenue (₹ in crores)

  • FY22: ₹318
  • FY23: ₹278
  • FY24: ₹339
  • FY25: ₹368
  • FY26: ₹501

Gross Margin (%)

  • FY22: 53%
  • FY23: 49%
  • FY24: 52%
  • FY25: 50%
  • FY26: 52%