Sudarshan Pharma - Sudarshan Pharma

📊 BSE: 543828 🏢 Specialty Chemicals 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

Consolidated revenue from operations grew 9.0% YoY to INR 505.0 Cr in FY25 from INR 463.5 Cr in FY24. The API, Intermediate & Active Pharmaceutical Ingredients segment is projected to grow 20.0% YoY in FY26 to INR 609.08 Cr.

Geographic Revenue Split

Domestic sales contributed 92.3% of total revenue in FY25, while export revenue increased to 7.7% (INR 38.9 Cr) from 2.4% in FY24. The company targets 30% export revenue in FY26 and 50% by FY30.

Profitability Margins

Gross Profit Margin improved from 8.9% in FY24 to 12.9% in FY25. PAT Margin increased from 2.5% (INR 11.5 Cr) in FY24 to 3.2% (INR 16.0 Cr) in FY25 due to a shift toward manufacturing sales.

EBITDA Margin

EBITDA Margin grew significantly from 4.9% (INR 22.8 Cr) in FY24 to 7.9% (INR 39.9 Cr) in FY25, a 75% YoY increase in absolute EBITDA value, driven by margin optimization in local API resale and increased manufacturing output.

Capital Expenditure

Planned strategic acquisitions for 2025-2026 total INR 355 Cr, including a Hyderabad Unit (INR 35 Cr), Gujarat Unit 1 (INR 30 Cr), a USFDA Plant (INR 250 Cr), and Gujarat Unit 2 (INR 40 Cr).

Credit Rating & Borrowing

Infomerics Ratings reaffirmed the long-term bank facilities at IVR BBB-/Positive and short-term facilities at IVR A3. Working capital interest costs are projected at 10.0%.

⚙️ Operational Drivers

Raw Materials

Key raw materials include API intermediates, basic industrial chemicals, and specialty chemicals such as N-Heptane, Diethanolamine, and N-Methyl-2-pyrrolidone (NMP).

Import Sources

The company imports approximately 70-80% of its intermediates required for APIs from China, creating a high dependency on Chinese supply chains.

Capacity Expansion

Palghar Unit 2 has an oral liquid production capacity of 2,000 litres per shift (scalable to 6,000 litres). Planned expansions include four new manufacturing units in India and strategic acquisitions in Africa and Europe.

Raw Material Costs

Cost of materials consumed and stock-in-trade purchases totaled INR 494.1 Cr in FY25. COGS as a percentage of revenue is projected to decrease from 91.64% in FY25 to 87.10% by FY30 due to vertical integration.

Manufacturing Efficiency

Focusing on 'high value and low volume' products using Flow Reactor technology and continuous processes to improve efficiency and margins.

Logistics & Distribution

The company operates in over 10 countries and has a PAN India presence, exporting to regions including MENA, UK, Australia, and Southeast Asia.

📈 Strategic Growth

Expected Growth Rate

20%

Growth Strategy

Growth will be driven by vertical integration (moving from trading to manufacturing), strategic acquisitions totaling INR 355 Cr, and a target to increase export revenue to INR 100 Cr in FY26 through product registrations in non-regulated and semi-regulated markets.

Products & Services

Antibiotics, Cough Syrups, Antipyretics, Oncology APIs (Gemcitabine), Specialty Chemicals (N-Heptane, NMP), and healthcare disposables (sutures, catheters).

Brand Portfolio

Sudarshan Pharma, Ratna Lifescience, Ishwari Healthcare.

New Products/Services

New launches include a Cardiac First Aid Kit, Heart Kit, and Mouth Dissolving Strips for cold and cough, alongside new oncology molecules like Olaparib and Crizotinib.

Market Expansion

Targeting expansion into Africa for manufacturing and sales, and international acquisitions in Europe and the Gulf regions by 2025-2026.

Market Share & Ranking

India ranks 3rd by volume and 14th by value globally in pharma; SPIL is positioning itself as a key domestic manufacturer to capture share from Chinese imports.

Strategic Alliances

Strategic partnership with Amity University for R&D and a MoU with Ardes Laboratories for CDMO projects and manufacturing scale-up.

🌍 External Factors

Industry Trends

The Indian pharma market is projected to reach USD 130 billion by 2030. Trends show a shift toward domestic API manufacturing to reduce import dependency.

Competitive Landscape

Competes in the global generic space, particularly against Chinese manufacturers and large Indian pharma companies in the anti-infective and oncology segments.

Competitive Moat

Moat is built on vertical integration, PLI scheme approval for critical APIs, and a turnaround track record (e.g., Ratna Lifescience turning profitable after acquisition).

Macro Economic Sensitivity

Sensitive to government healthcare spending and the PLI scheme, which has earmarked INR 100 billion for the bulk drug industry.

Consumer Behavior

Increasing demand for affordable generic medicines and advanced healthcare solutions like mouth-dissolving strips.

Geopolitical Risks

Trade barriers or environmental shutdowns of chemical plants in China directly impact SPIL's raw material costs and supply stability.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Department of Pharmaceuticals and must comply with manufacturing standards for 50+ approved products for domestic and international markets.

Taxation Policy Impact

The company benefits from the Industrial Promotion Subsidy (IPS) equal to 100% of GST payable within Maharashtra and a 25% corporate tax rate used in financial projections.

⚠️ Risk Analysis

Key Uncertainties

Project implementation risk regarding the aggressive INR 355 Cr acquisition strategy and vulnerability to regulatory changes in the 200+ countries where Indian drugs are exported.