SMS Pharmaceuticals Limited announced its unaudited financial results for the quarter ended June 30, 2026 (Q1FY27).

Financial Performance

Revenue from operations stood at ₹207.0 crore in Q1FY27, representing a 6% year-over-year (YoY) increase from ₹196.1 crore in Q1FY26. However, it declined 13% quarter-over-quarter (QoQ) from ₹237.95 crore in Q4FY26.

Gross profit (including manufacturing expenses) was ₹74.9 crore, up 12% YoY from ₹66.7 crore in Q1FY26 but down 8% QoQ from ₹81.29 crore in Q4FY26. Gross profit margin expanded to 36% from 34% in Q1FY26, an improvement of 217 basis points.

EBITDA reached ₹40.95 crore, a 4% YoY increase from ₹39.37 crore in Q1FY26 and a 3% QoQ increase from ₹39.90 crore in Q4FY26. EBITDA margin remained at 20% in Q1FY27, same as Q1FY26 but improved from 17% in Q4FY26.

Profit After Tax (PAT) was ₹20.20 crore, up 8% YoY from ₹18.72 crore in Q1FY26 but down 4% QoQ from ₹20.96 crore in Q4FY26. PAT margin was 10%, consistent with Q1FY26.

Net profit after tax and share of profit from associate company (VKT Pharma Private Limited) was ₹20.91 crore, up 2% YoY from ₹20.50 crore in Q1FY26 but down 36% QoQ from ₹32.71 crore in Q4FY26. The share of profit from the associate stood at ₹0.71 crore during the quarter.

Earnings Per Share (EPS) was ₹2.23, down 3% YoY from ₹2.31 in Q1FY26 and down 38% QoQ from ₹3.58 in Q4FY26.

Revenue by Therapeutic Area

Revenue breakdown by therapeutic area for Q1FY27:

  • Anti-diabetic: ₹20.08 crore (10% of total revenue)
  • Anti Retro Viral (ARV): ₹65.22 crore (32% of total revenue)
  • Anti-inflammatory: ₹46.91 crore (23% of total revenue)
  • Anti-migraine: ₹24.79 crore (12% of total revenue)
  • Anti-ulcer: ₹10.11 crore (5% of total revenue)
  • Anti-erectile dysfunction: ₹9.87 crore (5% of total revenue)
  • Anti-epileptic: ₹11.61 crore (6% of total revenue)
  • Anti-anginal: ₹11.88 crore (6% of total revenue)
  • Others: ₹6.49 crore (3% of total revenue)

YoY growth rates by therapeutic area showed significant variations: Anti-erectile dysfunction (+262%), Anti-anginal (+129%), Anti-epileptic (+51%), ARV (+69%), Anti-migraine (+44%), Anti-inflammatory (+4%), while Anti-diabetic (-69%) and Anti-ulcer (-10%) declined.

Strategic and Operational Updates

The company completed 4 DMF/CEP filings during the quarter and remains on track to achieve its FY27 target of 10 DMF/CEP filings. The R&D team has developed a pipeline of 6-8 niche and high-value molecules expected to enter commercial production towards the end of FY27.

The ₹280 crore capital expenditure program is progressing as planned, with ₹120 crore already completed and the remaining ₹160 crore expected to be completed by FY27. This will support the commercialization of new niche and high-value molecules.

The Board approved an infusion of up to ₹50 crore as a loan into subsidiary SMS Peptides Private Limited, building on the ₹8 crore investment made in FY26 to establish its dedicated peptide R&D facility.

R&D team strength has been increased to 200 professionals, supporting the development pipeline of niche and high-value APIs and peptides.

Management Commentary

Executive Director Mr. P. Vamsi Krishna commented that growth was driven by broad-based performance across high-value API portfolio while maintaining EBITDA margins at around 20%. The company benefited from backward integration and improving product mix, supporting gross margins above 45%.

EBITDA margins were impacted by annual employee increments and elevated freight costs arising from the geopolitical situation in West Asia. These are expected to be temporary headwinds that should ease in the near future.

Outlook

The company expects growth momentum to strengthen over the remaining quarters of FY27. The ARV portfolio will continue to expand with commercialization of new molecules, while Ibuprofen is positioned to deliver strong volume growth supported by improving realizations/margins. Increasing contributions from high-value APIs and new product launches are expected to further support revenue growth.

The company reaffirmed its FY27 growth guidance while sustaining EBITDA margins of 20%, supported by a diversified portfolio, robust product pipeline, and ongoing capacity expansion.