Management Participants
- Mr. Swapnil Shah – Promoter and Managing Director
- Mr. Sanjay Majmudar – Chairman
- Mr. Deval Shah – Whole Time Director and Chief Financial Officer
- Moderator: Mr. Nitin Agarwal – DAM Capital Advisors
Financial Performance Highlights
Q2 FY27 Performance:
- Consolidated revenue: ₹192 crores (25% YoY growth)
- Consolidated EBITDA: ₹58 crores (38% YoY growth)
- EBITDA margin: 30% (290 bps YoY improvement)
- Profit after tax: ₹36.6 crores (22% YoY growth)
H1 FY27 Performance:
- Consolidated revenue: ₹372.5 crores (30% YoY growth)
- Consolidated EBITDA: ₹111 crores (58% YoY growth)
- EBITDA margin: ~30% (530 bps YoY improvement)
- Profit after tax: ₹67 crores (31% YoY growth)
Balance Sheet and Cash Flow:
- Operating cash flow: ₹38 crores in H1 FY27
- Capex: ₹46 crores in H1 FY27
- Significant improvement in working capital days and receivable days
Operational and Business Updates
US Regulated Market Business:
- Grew 28% YoY in Q2 and 34% in H1 FY27
- ANDA portfolio expanded from 34 in September 2025 to 64 in September 2026
- 23 ANDAs commercialized to date
- Received approval for 1 new ANDA and 3 sANDAs (supplement ANDAs covering 4 strengths) in Q2
- Commercialized 3 sANDAs in Q2; new ANDA to launch in Q3 FY27
- CDMO/CMO business commercialized 3 ANDAs covering 12 strengths
- R&D pipeline comprises 41 newly developed molecules covering ~130 strengths
Emerging Markets Business:
- Revenue grew ~21% in Q2 and 25% in H1 FY27
- EBITDA margins consistently in low-double-digit to mid-teens
- Business has turned cash positive
- European PIC/S approval received in H1 FY27
- 558 registrations approved, 944 registrations filed awaiting approval
India Branded Generics Business:
- Significant expansion of field force and market reach
- Gross margin improved from 18-20% last year to 60% currently
- Expected revenue: ₹50-60 crores for FY27
Facility Updates:
- Apnar US FDA-approved facility operating at 90-100% capacity
- Q2 revenue from Apnar: ₹21 crores
- Recently concluded FDA inspection with one minor procedural 483 observation
- Plans to install four commercial lines by March 31, 2027 (two existing, third being installed, fourth planned)
- Total production capacity target: 1.2 billion units from Apnar
- Prefilled syringe line installation to support GLP-1 and other products
Subsidiary Updates:
- Amerisyn: Expected to commence business within 10-15 days (as of October 29, 2026)
- Zoraya: Expected to commercialize within 45 days (as of October 29, 2026)
- Both subsidiaries incurred ~₹4 crores expenses in Q2 without revenue contribution
- Expected to contribute meaningfully from H2 FY27
Guidance and Outlook
- Maintains FY27 guidance: 30-40% revenue growth and 50-60% PAT growth
- Expects to sustain annual growth rate around 25% over next 2-3 years
- H2 historically stronger than H1; expected to continue in FY27
- Emerging markets expected to achieve mid-teens margins for full year
- Regulated market EBITDA margin expected to remain stable or improve by 1-2 percentage points
- CDMO/CMO business constitutes ~35% of regulated market revenue
Product Pipeline
- Controlled substances: 4-5 expected launches before March 31, 2027
- GLP-1 products: Commercializing in 18-20 emerging markets
- Zoraya: 14 ANDAs planned for launch in FY27
- Amerisyn: More than 10 products expected to launch within next two quarters
Other Business Updates
- Appointment of M/s Talati & Talati as statutory auditors
- Heavy investment in AI-backed applications and SAP HANA digitization
- Operating leverage expected to improve margins as revenues scale up
Q&A Highlights
- Utilization of Apnar facility primarily for validation activities (>50%)
- Unbilled revenue represents ~8-9% of total with less than 10% due for more than one year
- Other income includes interest income and realized foreign exchange gains
- Other segment revenue of ₹7.8 crores primarily comprises API sales, service income, and government incentives