ACCPL - Accretion Pha.

📊 NSE: ACCPL 🏢 Pharmaceuticals 📅 Last Updated: 11/13/2025 15:25

💰 Financial Performance

Revenue Growth by Segment

Total revenue grew 135.59% YoY in H1 FY26 to INR 43.74 Cr, driven by volume expansion in CDMO and private label formulations across oral solids, liquids, and powders. FY25 revenue was INR 57.38 Cr, a 70.4% increase from INR 33.67 Cr in FY24.

Geographic Revenue Split

The company operates in 30+ countries across Africa, Southeast Asia, and Latin America. Specific focus markets include Rwanda, Nigeria, Cambodia, and Malawi, though exact percentage splits per region are not disclosed.

Profitability Margins

PAT margin for H1 FY26 was 10.87%, down from 13.28% in H1 FY25. FY25 PAT margin stood at 11.8% (INR 6.79 Cr) compared to 11.5% in FY24. The decline in H1 FY26 is attributed to higher operating expenses during the business scale-up phase.

EBITDA Margin

EBITDA margin stood at 16.17% in H1 FY26, a decrease of 721 bps from 23.38% in H1 FY25. This was due to one-time product registration costs and a shift in product mix. FY25 EBITDA margin was 20.71% (INR 11.88 Cr).

Capital Expenditure

The company raised INR 29.75 Cr through an IPO in May 2025. Proceeds were used to increase production capacity by 40% and upgrade manufacturing equipment to meet international compliance standards.

Credit Rating & Borrowing

Total Debt to Equity ratio improved significantly from 2.5x in FY24 to 0.9x in FY25 following IPO-funded debt repayment. Interest costs in H1 FY26 were INR 0.37 Cr, down from INR 0.69 Cr in H1 FY25.

⚙️ Operational Drivers

Raw Materials

Pharmaceutical raw materials and active ingredients for oral solids, liquids, and powders, representing 73.5% of total revenue in H1 FY26 (INR 32.15 Cr).

Import Sources

Sourced for domestic and export formulations; specific geographic sourcing locations for raw materials are not disclosed in the documents.

Capacity Expansion

Current capacity was expanded by 40% post-IPO in 2025. The facility is capable of generating approximately INR 200 Cr in revenue at full utilization with single-shift operations.

Raw Material Costs

Raw material costs were INR 32.15 Cr in H1 FY26 (73.5% of revenue) compared to INR 11.98 Cr in H1 FY25, reflecting a 168% increase in procurement value to support higher volumes.

Manufacturing Efficiency

Efficiency gains are being targeted through new machinery and sharper batch planning. ROCE stood at a healthy 38.1% in FY25, reflecting efficient capital deployment.

Logistics & Distribution

Distribution is handled through a mix of merchant exports and direct market engagement in 30+ countries to optimize reach and margins.

📈 Strategic Growth

Expected Growth Rate

135%

Growth Strategy

Growth will be achieved by leveraging the 40% capacity expansion, completing 100+ pending product registrations in markets like Rwanda and Nigeria, and shifting from merchant exports to direct market engagement to capture higher margins.

Products & Services

Generic and branded pharmaceutical formulations including tablets, capsules, oral liquids, oral powders, and external preparations sold via CDMO and private label channels.

Brand Portfolio

Accretion Pharmaceuticals (Corporate Brand); specific product brand names are not listed.

New Products/Services

Over 100 products are currently under registration across international markets, expected to contribute significantly to the FY27 revenue mix.

Market Expansion

Targeting high-potential markets including Rwanda, Nigeria, Cambodia, and Malawi with direct regulatory approvals for manufacturing facilities.

Market Share & Ranking

Not disclosed.

Strategic Alliances

The company operates as a CDMO partner for various domestic and export clients; specific partner names are withheld due to regulatory/confidentiality requirements.

🌍 External Factors

Industry Trends

The industry is shifting toward specialized CDMO services. ACCPL is positioning itself by upgrading facilities to WHO-cGMP standards to move from merchant exports to direct market participation, which typically offers 30%+ gross margins.

Competitive Landscape

Competes with small to mid-sized pharmaceutical manufacturers in the generic export and CDMO space.

Competitive Moat

Moat is built on regulatory certifications (WHO-cGMP, GLP, ISO) and a large pipeline of 100+ registrations. Sustainability is driven by the high switching costs for CDMO clients once products are registered to a specific facility.

Macro Economic Sensitivity

Sensitive to healthcare spending in emerging markets (Africa/SE Asia) and global pharmaceutical supply chain stability.

Consumer Behavior

Increased demand for affordable, high-quality generic formulations in emerging economies.

Geopolitical Risks

Exposure to regulatory changes in semi-regulated and non-regulated markets in Africa and Southeast Asia.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by WHO-cGMP, GLP, and country-specific GMPs (Cambodia, Rwanda, Nigeria, Malawi). Compliance with these standards is mandatory for maintaining export registrations.

Environmental Compliance

Maintains ISO 14001:2015 (Environmental Management System) and ISO 22000:2018 certifications.

Taxation Policy Impact

Effective tax rate was approximately 25.9% in H1 FY26 (INR 1.66 Cr tax on INR 6.41 Cr PBT).

Legal Contingencies

No specific pending court cases or labor disputes with material INR values were disclosed in the provided documents.

⚠️ Risk Analysis

Key Uncertainties

The primary uncertainty is the timeline for the 100+ product registrations; delays could keep EBITDA margins suppressed at the 16-17% level longer than the anticipated FY27 recovery.