💰 Financial Performance

Revenue Growth by Segment

The company operates in a single segment (Pharmaceuticals) as per Ind AS 108; no separate segment information is provided. Total revenue for FY2024-25 was INR 661.51 Cr, representing a 2.24% YoY growth. For H1 FY2025-26, revenue grew 21.14% YoY to INR 376.73 Cr.

Geographic Revenue Split

Exports account for ~55% of total revenue (FY2024-25), with a strong presence in over 59 countries including Europe, Mexico, and South Africa. Domestic sales contribute the remaining ~45% of revenue.

Profitability Margins

Net Profit Margin was 7.20% in FY2024-25, down from 9.30% in FY2023-24. Operating Margin Ratio was 22.55% in FY2024-25 compared to 23.60% in the previous year, reflecting pressure from commoditised pricing.

EBITDA Margin

EBITDA margin for FY2024-25 was 10.64%. In H1 FY2025-26, the EBITDA margin fell to 7.13% from 11.38% in H1 FY2024-25, a decline of 425 basis points due to lower sales of high-margin products and non-recurring maintenance expenses.

Capital Expenditure

The company recently expanded its manufacturing capacity to 1,500 MTPA from 1,200 MTPA. Current Property, Plant and Equipment (PPE) is valued at INR 52.80 Cr as of September 30, 2025. Future capex is expected to be funded via internal accruals, supported by INR 83.4 Cr in cash and liquid investments.

Credit Rating & Borrowing

The company maintains a strong liquidity position with INR 83.4 Cr in cash and liquid investments against a total debt of INR 10.9 Cr (including lease liabilities) as of March 31, 2025. The interest coverage ratio was robust at 51.8 times in FY2025.

⚙️ Operational Drivers

Raw Materials

Key raw materials include intermediates for Erythromycin and its salts, as well as higher macrolides like Azithromycin and Roxithromycin.

Capacity Expansion

Current installed capacity is 1,500 MTPA, which was expanded from 1,200 MTPA in FY2024 to meet growing demand in regulated markets.

Raw Material Costs

Raw material costs represent approximately 80% of revenue, based on a gross margin of 20% (INR 75.20 Cr) on revenue of INR 376.73 Cr in H1 FY2025-26.

Manufacturing Efficiency

The company recently completed a state-of-the-art manufacturing facility targeted at regulated markets, which commenced commercial production on December 21, 2019.

📈 Strategic Growth

Expected Growth Rate

21.14%

Growth Strategy

Growth will be achieved through the ramp-up of the recently expanded 1,500 MTPA capacity, entry into new geographies, and the launch of new products developed through R&D to diversify the portfolio beyond core macrolides like Erythromycin.

Products & Services

Active Pharmaceutical Ingredients (APIs) including Erythromycin and its salts, and higher macrolides such as Azithromycin and Roxithromycin.

New Products/Services

The company is launching new products to strengthen its portfolio; however, the specific expected revenue contribution percentage is not quantified in the documents.

Market Expansion

The company is targeting expansion in regulated and semi-regulated markets including Western Europe, Mexico, and South Africa.

Market Share & Ranking

The company is described as a medium-sized player in the API/bulk drugs industry.

Strategic Alliances

The company maintains strong marketing partnerships with 360 customers across 59 countries.

🌍 External Factors

Industry Trends

The API industry is seeing a shift toward regulated markets; Anuh Pharma is positioning itself by obtaining certifications like WHO GMP and COFEPRIS to capture higher-realisation volumes. Current revenue growth is 21.14% for H1 FY2025-26.

Competitive Landscape

The company faces intense price-based competition from other medium and large-sized API manufacturers in commoditised product segments.

Competitive Moat

Durable advantages include regulatory certifications (CEP, WHO GMP, EDQM) required for regulated markets and an established track record with 360 customers. These are sustainable as they act as significant entry barriers for competitors.

Macro Economic Sensitivity

The company is sensitive to global demand for bulk drugs and forex volatility, as evidenced by unrealised currency losses impacting H1 FY2025-26 margins.

Consumer Behavior

Not applicable to B2B API manufacturing.

Geopolitical Risks

Exposure to trade barriers and regulatory changes in 59 export countries could impact the 55% of revenue derived from international markets.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by WHO GMP, COFEPRIS (Mexico), EDQM, and CEP standards. Compliance is critical as any suspension of these certifications would halt exports to regulated markets.

Environmental Compliance

The company has an active CSR committee and follows a board-approved CSR policy available on its website.

Taxation Policy Impact

The effective tax rate is approximately 23.7%, based on a tax expense of INR 4.96 Cr on a PBT of INR 20.87 Cr in H1 FY2025-26.

⚠️ Risk Analysis

Key Uncertainties

Key risks include the successful ramp-up of enhanced capacity and the sustainability of operating margins, which have a negative rating trigger if they fall below 7% on a sustained basis.

Geographic Concentration Risk

55% of revenue is concentrated in export markets, specifically Europe, Mexico, and South Africa.

Technology Obsolescence Risk

Technology risk is mitigated by ongoing R&D focus on new product launches and diversification into higher macrolides.

Credit & Counterparty Risk

Receivables quality is monitored; the Debtors Turnover Ratio increased to 113 days in FY2024-25 from 102 days in the previous year, indicating a slight stretching of credit terms.