Shilpa Medicare Limited – Investor Presentation Summary

Key Operational Highlights

  • API division recorded its highest-ever quarterly revenue at ₹298 crores (including captive) in Q2 FY27
  • Revenue grew approximately 16% YoY in both Q2 FY27 and H1 FY27 for API business
  • Non-captive API portfolio grew approximately 24% YoY in Q2 FY27 and approximately 20% in H1 FY27
  • Specialty CDMO revenue grew approximately 36% YoY for the quarter
  • Formulations revenue grew over 50% YoY for the quarter and over 70% for H1 FY27
  • 500+ Regulatory Filings across the world
  • Worldwide presence in 70+ countries
  • 400+ R&D Personnel
  • 10+ Regulatory approved manufacturing + R&D facilities (including Analytical Lab)

Key drivers of operational performance: Growth driven by core API portfolio, specialty CDMO, new client acquisitions in developed markets, niche 505(b)(2) portfolio gaining commercial traction, continued portfolio expansion and market penetration in Europe, new product approvals and tender wins in RoW markets, and the NorUDCA launch in India.

Segment-wise Performance

Legal Entities & Areas of Operation:

  • API (48% of H1 FY27 revenue): Shilpa Pharma Lifesciences, Shilpa Medicare, Shilpa Therapeutics, FTF Pharma - Oncology, Non-Oncology, Payloads and Linkers, Peptides, Polymers, GLP-1, CDMO
  • Formulations (40% of H1 FY27 revenue): Tablets/Capsules, Injectables, Oral Dissolving Films, Transdermal patches, CDMO
  • Biologics (12% of H1 FY27 revenue): Shilpa Biologicals, Shilpa Biocare - NBE, Microbials Products, Mammalian Products, CDMO, ADCs

Explanation of significant changes in segment performance: API growth driven by core portfolio and Specialty CDMO with new client acquisitions in developed markets. Formulations growth driven by broad-based momentum across all key markets, with US revenue growing to ₹35 crores, Europe formulations revenue more than doubling YoY to ₹82 crores, and domestic revenue more than doubling YoY to ₹20 crores supported by the NorUDCA launch.

Financial Highlights

Q2 FY27 Financials:

  • Revenue: ₹538 crores (+45% YoY, +15% QoQ)
  • EBITDA: ₹151 crores (+37% YoY)
  • EBITDA Margin: 28%
  • PAT: ₹79 crores (+80% YoY)

H1 FY27 Financials (Consolidated):

  • Total Income: ₹1,007 crores (+44% YoY)
  • Gross Profit: ₹683 crores (+33% YoY)
  • GP Margin: 68% (vs 74% in H1 FY26)
  • EBITDA: ₹290 crores (+40% YoY)
  • EBITDA Margin: 29% (vs 30% in H1 FY26)
  • PAT: ₹180 crores (+98% YoY)
  • PAT Margin: 18% (vs 13% in H1 FY26)

YoY/QoQ comparison: Q2 FY27 revenue up 45% YoY and 15% QoQ; EBITDA up 37% YoY and 9% QoQ; PAT up 80% YoY but down 22% QoQ.

Drivers of financial performance: Growth across all verticals, highest-ever quarterly revenue from API segment, broad-based momentum across all key markets in formulations, and nearly doubled PAT.

Key Risks: Not explicitly disclosed in the presentation.

Geographical Revenue Split

Formulations Business Geographical Performance (Q2 FY27):

  • US: ₹35 crores
  • Europe: ₹82 crores (more than doubled YoY)
  • Domestic: ₹20 crores (more than doubled YoY)
  • RoW: Growth driven by new product approvals and tender wins

Balance Sheet Snapshot

As of H1 FY27 (Consolidated):

  • Fixed Assets: ₹1,634 crores
  • Tangible Assets: ₹1,387 crores
  • Intangible Assets: ₹246 crores
  • Capital WIP: ₹1,051 crores
  • Other Non-current Assets: ₹176 crores
  • Net Working Capital: ₹702 crores
  • Current Assets: ₹1,228 crores
  • Cash and cash equivalents: ₹50 crores
  • Current Liabilities: ₹575 crores
  • Total Assets (Net): ₹3,563 crores
  • Equity: ₹2,758 crores
  • Borrowings (Current & Non-current): ₹664 crores
  • Other Non-Current Liabilities: ₹141 crores

Financial Health Insights: Credit rating upgraded from A+ to AA- driven by strengthening balance sheet and improving return ratios.

Capex & Cash Flow Health

H1 FY27 Cash Flow (Consolidated):

  • Purchase of Fixed Assets (Net): ₹252 crores
  • Net Cash Flow from Operating Activities: ₹292 crores
  • Net Cash Flow generated from Operations: ₹326 crores
  • Net Cash Flow generated during the period: ₹7 crores

Investment Rationale: Focus on capacity expansion including new oncology block expansion completion by end-FY27, peptide expansion adding one of India's largest solid-phase synthesis capacities, and integrated ADC Drug Substance GMP manufacturing facility commissioning.

Strategic & R&D Initiatives

Investments in Innovation:

  • 20+ products across Onco and Non-Onco API portfolio under development
  • Onco portfolio revamped with 15+ new APIs added to pipeline
  • New oncology block expansion on track for completion by end-FY27
  • Peptide expansion underway for GLP-1, HPAPI and CDMO requirements
  • Fully operational, integrated ADC Drug Substance GMP manufacturing facility commissioned in Dharwad
  • 6 late-stage programs in Phase III/Registration in Specialty CDMO

Expected impact on growth: New product launches expected through FY27 and beyond to contribute meaningfully to growth and strengthen business quality over time.

Strategic Rationale: Deliberate focus on innovation-led differentiation translating into high-value partnerships with global companies, expanding into high-growth markets through complex therapies and biosimilars.

Industry Trends & Business Environment

Macro/Industry Trends: NAFLD affects approximately 25% of the world's population, including an estimated 188 million individuals in India. Global market opportunities mentioned include Semaglutide (USD 60+ bn), Adalimumab (USD 23 bn), Aflibercept (USD 6 bn), Nivolumab (USD 12 bn), Pembrolizumab (USD 35 bn), Daratumumab (USD 15 bn), Dupilumab (USD 25 bn), and SBPL 1 (ADC) (USD 3 bn).

Impact on Company: Company is targeting high-value products facing patent expiries through 2032, developing biosimilars for large addressable markets, and focusing on complex therapies with significant market opportunities.

Management Commentary & Growth Outlook

Strategic Outlook: Management stated they are "well positioned to deliver a stronger FY27" with strong first-half momentum, a maturing pipeline, and a sharpened strategic focus. They emphasized "innovation-led differentiation" that is "increasingly translating into high-value partnerships with global companies."

FY Guidance: Not explicitly provided with specific numbers, but management expects niche launches lined up through FY27 and beyond to contribute meaningfully to growth.

Market Share Targets: Not explicitly disclosed.

Risks and Opportunities: Management highlighted their expanded partnership with Orion Corporation as reinforcing their position as "a partner of choice for complex therapies." Their progress on sustainability has been recognized externally with an improvement in CRISIL ESG score.

ESG Updates

The presentation mentions an improvement in CRISIL ESG score, reflecting the company's commitment to responsible and well-governed growth.

Digital Transformation

Not specifically addressed in the presentation.