Windlas Biotech Limited

Financial Performance Highlights

Q2 FY27 Performance:

  • Revenue: ₹264 crore, representing 19% year-over-year growth
  • EBITDA (excluding non-cash ESOP expenses): ₹36 crore (13.7% margin)
  • PAT (excluding non-cash ESOP expenses): ₹25 crore (9.5% margin)
  • Reported EBITDA: ₹29 crore
  • Reported PAT: ₹18 crore

H1 FY27 Performance:

  • Revenue: ₹512 crore, representing 18% year-over-year growth
  • Achieved ₹500+ crore milestone in half-yearly revenue for the first time
  • EBITDA (excluding non-cash ESOP expenses): ₹70 crore (13.7% margin)
  • PAT (excluding non-cash ESOP expenses): ₹50 crore (9.7% margin)
  • Reported EBITDA: ₹56 crore
  • Reported PAT: ₹36 crore
  • Highest-ever earnings per share of ₹17.21 in H1 FY27

Segment-wise Performance

Generic Formulation CDMO:

  • Q2 FY27 revenue: ₹215 crore (34% YoY growth)
  • H1 FY27 revenue: ₹422 crore (32% YoY growth)
  • Customers entrusted larger share of portfolios and new products

Trade Generics and Institutional:

  • Q2 FY27 revenue: ₹36 crore
  • H1 FY27 revenue: ₹66 crore
  • Portfolio reshaping ongoing, replacing codeine-based products with new launches

Exports:

  • Q2 FY27 revenue: ₹12 crore (26% YoY growth)
  • H1 FY27 revenue: ₹23 crore (46% YoY growth)
  • Focus on investments in dossiers, product registrations, and site approvals

Operational Highlights

Capacity Additions:

  • Plant 6 commercialized in September 2026 with capacity of 200 million tablets and capsules
  • Total company capacity can serve up to ₹1,100 crore revenue with potential for 10% improvement through efficiency measures

Regulatory Approvals:

  • Plant 4 and Plant 5 (injectable facility) received EU GMP certification in Q2 FY27
  • Philippines approval received in earlier quarter
  • EU GMP certification represents significant milestone and validation of quality systems

Financial Position:

  • Net liquidity: ₹223 crore as of H1 FY27 closing
  • ROCE: 28%
  • ROE: 24%
  • Strong balance sheet supporting both shareholder returns and growth

Capital Allocation

Shareholder Returns:

  • Dividend payment: ₹13 crore (₹6.30 per share) related to FY26
  • Buyback: ₹47 crore successfully completed without promoter participation
  • Capex funded from internal resources

Future Capital Allocation Strategy:

  • Maintain liquidity for strategic opportunities
  • Potential for future buybacks when market conditions warrant
  • Continued dividend payments per dividend policy
  • Acquisition opportunities for new therapeutic areas or dosage forms being evaluated
  • Organic capex for capacity expansion when peak utilization levels approached

Management Commentary and Outlook

Growth Strategy:

  • Focus on all three verticals: CDMO, trade generics, and exports
  • Building broader and more resilient portfolio in trade generics vertical
  • Continued investment in export market development with longer lead times
  • No current plans to expand into innovator or early-stage development services

Operational Efficiency:

  • Working on operational efficiency project requiring ₹25-30 crore capex, expected to reduce operational expenditure
  • Focus on quality systems with 70-80 customer audits annually
  • Benefiting from tighter regulatory environment (Schedule M implementation) as organized player

Capacity Planning:

  • Phase-wise capacity expansion approach instead of building large facilities upfront
  • Injectable expansion considered once peak capacity utilization reached
  • No current capacity constraints, company confident in avoiding future capacity shortages

Q&A Session Highlights

Plant 6:

  • Capacity of 200 million tablets and capsules
  • Commercialized on September 28, 2026, with costs flowing into Q3 FY27
  • Scope for 10% capacity improvement through efficiency measures

Exports Business:

  • Current contribution: ~5% of revenue
  • Strategic focus on scaling up exports due to better margins
  • Working on product portfolio expansion and facility approvals
  • No specific guidance on export revenue targets

Trade Generics Recovery:

  • Working to replace lost codeine-based business with new product launches
  • Focus on expanding product range and geographical coverage
  • Higher margin business compared to CDMO
  • No specific timeline for recovery to pre-codeine levels

CDMO Growth Drivers:

  • Growth driven by combination of existing product expansion, new products with existing customers, and new customers
  • No one-off events or concentration in specific therapeutic categories
  • API price impact not quantified, company attributes growth to execution strength

Injectable Business:

  • Domestic market focus currently
  • EU GMP certification enables regulated market entry
  • Filings submitted for European market, approvals pending
  • Revenue contribution timeline not disclosed due to regulatory uncertainty