Financial Performance Highlights

Consolidated Financials Q1 FY27:

  • Revenue: ₹281 crores (vs. ₹247 crores in Q1 FY26), growth of 14%
  • EBITDA: ₹83 crores (vs. ₹70 crores in Q1 FY26), growth of 18%
  • EBITDA Margin: 29.7% (120 bps improvement YoY)
  • Profit After Tax: ₹48 crores (vs. ₹41 crores in Q1 FY26), growth of 17%
  • PAT Margin: 17.1% (40 bps improvement YoY)

Segment-wise Performance

Healthcare Segment:

  • Revenue: ₹142 crores (85% YoY growth from ₹77 crores)
  • Contribution: 51% of consolidated revenue (became largest segment)
  • Growth driven by pen injector platform including GLP-1 and chronic therapy devices
  • Shipped approximately 9 million medical devices in Q1 FY27
  • Product mix: 50-60% GLP-1 devices, remainder insulin and other molecules

Consumer Segment:

  • Revenue: ₹116 crores (24% decline from ₹151 crores in Q1 FY26)
  • Contribution: 41% of consolidated revenue
  • Decline due to softer demand in home furnishings across Europe and United States
  • Secured global project from FMCG customer and won new business in LED lighting segment

Industrial Segment:

  • Revenue: ₹23 crores (25% YoY growth from ₹18 crores)
  • Growth supported by new customer additions and engineering applications including Consumer Electronics
  • Received business confirmations for new projects from Appliance and Automotive customers
  • Onboarded new customer with orders covering 5 Consumer Electronic components

Operational Metrics

  • Machine utilization improved to 50.2% in Q1 FY27 vs. 48.7% in Q1 FY26
  • Export contribution: 58% of consolidated revenue (vs. 76% in Q1 FY26)
  • Change due to growing Healthcare business supplied through Indian pharmaceutical customers to global markets

Capacity Expansion Update

  • Additional 25 million pen capacity expected operational by end-September 2026
  • Total installed pen injector capacity to reach approximately 75 million pens per annum
  • Current production line efficiency improved by 9%, expecting further 30% jump with additional equipment
  • New line strategy modified: ramp-up to 80%+ efficiency at supplier before FAT and shipment

Business Development Initiatives

  • Appointed dedicated heads of business development for Europe and North America
  • In discussions with major global pharmaceutical company for partnership
  • Confidence in securing partnership within next 4-6 quarters

New Product Development Pipeline

Emergency Use Auto-injectors:

  • Targeting epinephrine and other confidential molecules
  • Requires 99.999% reliability for automatic injection, dose delivery and retraction
  • Expected completion by end of 2027

Reusable Auto-injectors:

  • Addressing sustainability (1 billion auto-injectors landfilled annually)
  • Performance testing scheduled for current month or early next month
  • First showcase at CPHI Milan

On-body Injectors:

  • Targeting oncology treatments with 3ml to 15/23ml delivery range
  • For biologics/biosimilars
  • Currently under development and partnership discussions

Consumer Electronics & Semiconductor Business

  • Started commercial supply for Consumer Electronics
  • Awarded 5 new components from new customer
  • New plant location secured (not disclosed)
  • Revenue target of $10 million expected within 24-30 months
  • Semiconductor trays investment: ₹5 crores in existing facility
  • Future Consumer Electronics plant investment: ₹80-100 crores
  • Semiconductor revenue expected to start from Q4 FY27

Market Position and Competitive Landscape

  • Confident of maintaining dominant position in Canada and significant share in Brazil
  • Chinese competition pricing at $1.50-$1.70 vs. Shaily's above $2.00
  • Pricing contracts include annual review mechanism, not cost-plus
  • Device performance feedback described as "above average, good" with minimal issues

Subsidiary Performance

  • UK subsidiary revenue decline attributed to timing issues (milestone confirmations at month-end)
  • Expected recovery over next three quarters

Talent Retention and Growth

  • Emphasis on training and development under new leadership
  • Competitive compensation packages
  • Existing ESOP schemes with future eligibility for employees
  • Strong industry reputation for talent attraction

Forward-looking Commentary

  • Expect to exceed full-year guidance of 36 million devices
  • Gross margin normalization expected by Q3 FY27
  • Abu Dhabi facility targeted for production by end-FY28
  • 50-55% capacity commitments already secured for Abu Dhabi
  • Consumer business expected to maintain FY26 levels in current year