• The document contains the transcript of an earnings conference call held on November 5, 2026, to discuss Q2 and H1 FY27 financial results.
  • The conference call was hosted by management including Mr. Vamsi Krishna Potluri (Executive Director), Mr. Lakshmi Narayana Tammineedi (Chief Financial Officer), and Mr. Manohar Mollama (Company Secretary and Compliance Officer).
  • The call included a detailed presentation of financial results followed by a Q&A session with analysts from various investment firms.

Financial Highlights Disclosed:

  • Q2 FY27 Revenue: INR316 crores, up 30% YoY and 53% QoQ
  • Q2 Gross Profit: INR111 crores, up 41% YoY with gross margin of 35%
  • Q2 EBITDA: INR68 crores, up 40% YoY with margin of 21% (145 bps expansion)
  • Q2 PAT: INR39.6 crores, up 57% YoY with PAT margin of ~13%
  • H1 FY27 Revenue: INR523 crores, up 19% YoY
  • H1 EBITDA: INR109 crores, up 24% YoY with margin of 21%
  • H1 PAT: INR59.8 crores, up 36% YoY
  • Including share of VKT profit: H1 net profit grew 33% to INR60.8 crores

Therapeutic Area Performance (H1 FY27):

  • ARVs: Grew 47% to INR150 crores
  • Anti-inflammatory: Grew 25% to INR110 crores
  • Anti-migraine: Grew 32%
  • Anti-epileptic: Grew 44%
  • Anti-anginal: Grew 45%
  • Anti-ED: Grew 52%
  • High-value APIs contribution increased to 49% of revenue from 47% in FY26

Business Updates:

  • R&D: Completed 6 DMF and CEP filings (4 in H1, 2 in October), on track for FY27 target of 10 filings
  • Expected 6-8 new molecules to start commercial production in FY28
  • Ibuprofen capacity expansion to 9,600 tons annually, with current utilization at 90-95%
  • Current production rate: 450-500 tons per month, expected to ramp up to full capacity over 6-8 months
  • Capex: INR160 crores deployed of INR280 crores program, remaining INR120 crores to be deployed by FY27 end
  • New subsidiaries: SMS Peptides Private Limited (99.9% owned) for peptide business, SMS coLab Private Limited for CDMO platform
  • Board approved INR50 crores loan to peptide subsidiary
  • Pilot scale production for peptides targeted for Q4 FY27, first CRO revenue expected in Q2 FY28

Guidance Update:

  • Initial FY27 guidance: 15% revenue growth with 20% EBITDA margin
  • Now expecting to exceed both guidance metrics based on strong H1 performance and stable pricing outlook
  • FY28 EBITDA margin target: 22-24%

Additional Financial Metrics:

  • Working capital cycle: 120-150 days
  • Cash flow conversion: ~95% in H1, expected to improve by 10-15 bps
  • Total debt expected to reach ~INR400 crores by FY27 end (including long-term and short-term)
  • Fixed asset turnover excluding capital work-in-progress: 1.72x

Additional Notes Section

  • The transcript was filed with stock exchanges pursuant to Regulation 30 of SEBI (LODR) Regulations 2015 on November 10, 2026.
  • A copy of the transcript has been uploaded to the company's website (www.smspharma.com).
  • The document contains detailed financial data and operational metrics as presented during the earnings call.
  • The call included forward-looking statements as indicated in the disclaimer section.