Financial Performance Overview

Q4 FY26 Performance:

  • Revenue from operations stood at ₹149.23 crores, compared to ₹94.97 crores in Q4 FY25, registering a growth of 57% year-on-year.
  • On a sequential basis, revenue grew by 17% over Q3 FY26.
  • EBITDA for the quarter was ₹21.41 crores, against ₹6.32 crores in Q4 FY25.
  • EBITDA margin for the quarter stood at 14.35%, an expansion of 769 basis points over the same quarter last year.
  • Profit after tax (PAT) for the quarter was ₹13.49 crores, compared to ₹0.54 crores in Q4 FY25.

Full Year FY26 Performance:

  • Revenue from operations stood at ₹500.95 crores, compared to ₹368.26 crores in FY25, reflecting a growth of 36%.
  • EBITDA for the year was ₹72.69 crores, against ₹33.87 crores in the previous year.
  • EBITDA margin for FY26 stood at 14.51%, an improvement of 531 basis points over FY25.
  • PAT for the year stood at ₹48.13 crores, compared to ₹21.12 crores in FY25, a growth of 128%.

Operational & Business Highlights

The recovery was broad-based, with healthy traction across the product portfolio and markets. This was the third consecutive quarter of strong improvement in operating performance.

Challenges Faced in Q4:

Geopolitical developments led to an increase in freight costs and raw material prices. As a part of the business operates under fixed-price contracts, these cost increases could not be passed on immediately to customers. Forex movement resulted in mark-to-market provisions on investments, which had some impact on margins during the quarter. While margins were sharply higher on a year-on-year basis, they were marginally lower sequentially.

Price Pass-Through:

Management stated it has already been able to secure a partial price pass-through with customers in the first quarter of the current financial year (FY27).

Capacity Expansion Update

Phase I:

Phase I of the ongoing expansion programme is now contributing meaningfully to operations. The higher volumes during the quarter were comfortably absorbed within this expanded capacity.

Phase II (Tarapur Greenfield Expansion):

The company faced delays during the quarter due to shortages of gas and labour, which affected the pace of construction. As a result, commissioning of Phase II, which was earlier expected in Q1 FY27, is now scheduled for early Q2 FY27. The company remains on track to commence commercial production from H2 FY27, as previously guided.

Capex Details:

Of the total planned capex of ₹210 crores, the company had invested ₹182.75 crores up to Q4 FY26. The capex was increased from an initial ₹160 crores to ₹210 crores. Approximately ₹20 crores of the increase was due to a higher level of automation and digitization, and roughly ₹30 crores was due to an increase in the cost of metals. This capex is not expected to result in additional sales capacity beyond what was originally planned.

Future annual capex is anticipated to be in the range of ₹15-20 crores.

Business Mix & Strategy

  • Animal API continues to be the core of the business and contributed 95% of revenues during the quarter.
  • Customer and product concentration remains well diversified. The top 10 customers accounted for 29% of sales, and the top 10 products contributed 66% of sales.
  • The company has doubled its API pipeline in the last three years from ~20 to 45 APIs.
  • Latin America was highlighted as a successful growth market.

Regulatory Filings & Market Entry

Europe (CEP & DMS):

  • The company currently has three CEPs (Certificates of Suitability) registered and three more under review.
  • Two additional CEPs are being prepared for submission in the current quarter (Q1 FY27).
  • The company is "fairly advanced" with European registrations and anticipates that business to start coming in towards the last half of FY27 (H2 FY27).
  • By the end of Calendar Year 2026, the company is hopeful of having a total of six CEPs and nine DMS (Drug Master Files) registered.

United States (USFDA):

  • The company has started filing its VMS (Veterinary Master Files). Five VMS have been filed starting from the second half of the last calendar year, with a plan to file another six in the current year.
  • Customers have started evaluating samples and running pilot batches. This will lead to them filing with USFDA to add NGL as an additional source, which will trigger a USFDA inspection.
  • There is no confirmed timeline for the USFDA inspection; it could happen in CY2026 or CY2027, depending on the regulator's schedule.
  • Commercial sales to the US are expected to start in FY28.

Outlook & Guidance

  • Management is confident of building on the current performance in the coming quarters, supported by partial price pass-through and continued volume traction.
  • The aim is to achieve a quarterly revenue run rate of ₹150 crores+ and stabilize at that level.
  • The target EBITDA margin range is 15% to 18%.
  • It is expected to take three to four years to reach peak utilization of the Phase II expansion, which is projected to generate turnover of ₹350-400 crores at peak.

Other Key Points from Q&A

  • Outsourcing of intermediates currently constitutes about 20% of requirements.
  • Utilization of the Phase-I expansion is currently at 70-80%.
  • The margin profile for regulated market business is expected to be 3-5% higher than the current 15-18% band.
  • The company budgets to add 9-10 new products on a yearly basis.
  • Plans for brownfield expansion in existing facilities for the ROW market are slated for the next financial year (FY28).