Performance Highlights

SMS Pharmaceuticals Limited announced its unaudited financial results for the quarter and half year ended September 30, 2026.

Key Financial Performance (Q2FY27 vs. Q2FY26):

  • Revenue from operations grew 30% YoY to ₹316.08 crore from ₹242.43 crore.
  • Gross profit (including manufacturing expenses) increased 41% YoY to ₹110.84 crore from ₹78.51 crore.
  • Gross profit margin expanded 268 basis points YoY to 35% from 32%.
  • EBITDA increased 40% YoY to ₹67.65 crore from ₹48.36 crore.
  • EBITDA margin expanded 145 basis points YoY to 21% from 20%.
  • PAT surged 57% YoY to ₹39.57 crore from ₹25.13 crore.
  • PAT margin expanded 215 basis points YoY to 13% from 10%.
  • PAT after share of associate profit/loss was ₹39.85 crore, up 57% YoY.

Key Financial Performance (H1FY27 vs. H1FY26):

  • Revenue from operations grew 19% YoY to ₹523.05 crore from ₹438.48 crore.
  • Gross profit (including manufacturing expenses) increased 28% YoY to ₹185.77 crore from ₹145.23 crore.
  • Gross profit margin expanded 239 basis points YoY to 36% from 33%.
  • EBITDA increased 24% YoY to ₹108.60 crore from ₹87.73 crore.
  • EBITDA margin expanded 75 basis points YoY to 21% from 20%.
  • PAT rose 36% YoY to ₹59.76 crore from ₹43.84 crore.
  • PAT margin expanded 142 basis points YoY to 11% from 10%.
  • PAT after share of associate profit/loss was ₹60.75 crore, up 33% YoY.
  • The share of profit from the associate entity, VKT Pharma Private Limited, was ₹0.99 crore for H1FY27.

Quarter-over-Quarter Performance (Q2FY27 vs. Q1FY27):

  • Revenue from operations grew 53% QoQ to ₹316.08 crore from ₹206.96 crore.
  • Gross profit (including manufacturing expenses) increased 48% QoQ to ₹110.84 crore from ₹74.93 crore.
  • Gross profit margin contracted 114 basis points QoQ to 35% from 36%.
  • EBITDA increased 65% QoQ to ₹67.65 crore from ₹40.95 crore.
  • EBITDA margin expanded 162 basis points QoQ to 21% from 20%.
  • PAT surged 96% QoQ to ₹39.57 crore from ₹20.20 crore.
  • PAT margin expanded 276 basis points QoQ to 13% from 10%.

Revenue by Therapeutic Area (H1FY27)

| Therapeutic Area | Revenue (₹ Cr) | % of Total Revenue | YoY Growth (%) |

| Anti Retro Viral (ARV) | 150.25 | 29% | 47% |

| Anti-inflammatory | 110.03 | 21% | 25% |

| Anti-diabetic | 64.66 | 12% | -39% |

| Anti-migraine | 62.84 | 12% | 32% |

| Anti-ulcer | 14.18 | 3% | -39% |

| Anti-erectile dysfunction | 30.29 | 6% | 52% |

| Anti-epileptic | 32.05 | 6% | 44% |

| Anti-anginal | 23.16 | 4% | 45% |

| Others | 35.59 | 7% | 200% |

Drivers of Performance

  • Revenue growth was driven by strong volume growth and improved price realization, particularly in anti-inflammatory APIs and ARVs.
  • Margin expansion was underpinned by the tangible benefits of backward integration and operating leverage.
  • Excluding the anti-diabetic segment, which saw a 39% YoY decline in H1FY27, overall revenue growth would have been 38% YoY, indicating a favourable portfolio shift.

R&D and Regulatory Filings

  • The company completed four DMF/CEP filings in H1FY27 and two more in October 2026, taking the FY27 total to six filings.
  • These filings span anti-ulcer, anti-migraine, anti-depressant, antifungal, and anti-fibrotic APIs.
  • The company is on track to meet its full-year target of 10 DMF/CEP filings in FY27.
  • Six to eight new molecules from the R&D pipeline are targeted for commercial production commencing in FY28.

Project and Capex Update

  • A ₹280 crore capital expenditure program is on track for completion in FY27, with ₹160 crore deployed to date.
  • The capex builds capacity for existing molecules and the pipeline of six to eight new molecules.
  • Ibuprofen capex is expected to be completed in the coming quarters, taking total capacity to 9,600 MTPA. Volumes are expected to ramp up gradually over the next six quarters.
  • The peptides R&D facility at the 99.9% owned subsidiary, SMS Peptides Private Limited, is fully operational. The Board recently approved a loan of ₹50 crore to this subsidiary.
  • Pilot-scale production for peptides is targeted for Q4FY27, with initial CRO revenue from pilot scale production anticipated in Q2FY28.
  • The company has established a 100% wholly owned subsidiary, SMS coLab Private Limited, to serve as a dedicated CDMO platform for APIs and peptides.

Guidance and Outlook

  • Based on the H1FY27 performance and the outlook for the rest of the year, the company is confident that FY27 revenue growth and EBITDA margins will exceed earlier guidance.

Management Commentary

Mr. P. Vamsi Krishna, Executive Director, commented on the performance, attributing the strong results to structural advantages from backward integration and capacity expansion initiatives. He emphasized the company's commitment to continued investment in backward integration and its robust R&D framework, strengthened by over 200 skilled professionals.

Earnings Conference Call

An earnings conference call is scheduled for Thursday, November 05, 2026, at 12:00 pm IST.