CORONA - Corona Remedies

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

💰 Financial Performance

Revenue Growth by Segment

The Chronic segment (71.1% of revenue) grew at a 20.5% CAGR between MAT Jun-22 and MAT Jun-25, significantly outpacing the IPM Chronic growth of 10.1%. The Acute segment grew at a slower pace, contributing 28.9% of revenue in FY25.

Geographic Revenue Split

West India (48.0%), South India (21.5%), North India (18.0%), and East India (12.4%) as of FY25.

Profitability Margins

Gross Margin improved to 81.0% in H1FY26 from 80.2% in FY25. PAT Margin increased to 13.9% in H1FY26 compared to 12.5% in FY25 and 8.9% in FY24, driven by a shift toward high-margin chronic therapies.

EBITDA Margin

EBITDA Margin was 20.9% in H1FY26, representing a 170 bps improvement from 19.2% in H1FY25. Absolute EBITDA for H1FY26 was INR 148.3 Cr, up 27.4% YoY.

Capital Expenditure

Net cash used in investing activities was INR 41.3 Cr in H1FY26 and INR 83.8 Cr in FY25, primarily for manufacturing facility upgrades and brand acquisitions.

Credit Rating & Borrowing

The company maintains an A+ Credit Rating. Finance costs decreased by 35% YoY to INR 3.9 Cr in H1FY26 from INR 6.0 Cr in H1FY25 due to debt reduction.

⚙️ Operational Drivers

Raw Materials

Hormone APIs (Active Pharmaceutical Ingredients) are key raw materials; Cost of Goods Sold (COGS) represented 19.0% of total revenue in H1FY26.

Import Sources

Switzerland (via in-licensing from Ferring Pharmaceuticals) and domestic sourcing through associate companies.

Key Suppliers

La Chandra Pharmalabs Private Limited (Associate for API backward integration) and Ferring Pharmaceuticals (Switzerland).

Capacity Expansion

Current installed capacity is 1.65 Bn units p.a. for formulations, 20 Mn sachets, and 10 Mn bottles. An additional 400 Mn tablets capacity commenced production at the Gujarat facility on December 22, 2025.

Raw Material Costs

COGS was INR 134.4 Cr in H1FY26 (19.0% of revenue), showing a 160 bps improvement in procurement efficiency from 20.6% in H1FY25.

Manufacturing Efficiency

Lean and efficient operations supported by two DSIR-approved R&D facilities located within the manufacturing sites.

📈 Strategic Growth

Expected Growth Rate

16.8%

Growth Strategy

Growth will be achieved by increasing MR productivity in urban centers, expanding into new therapeutic areas (Nephrology, CNS, Oncology, Dermatology), leveraging the EU-GMP Gujarat facility to enter regulated overseas markets, and continuing strategic brand acquisitions like the 7 brands from Bayer Zydus.

Products & Services

Pharmaceutical formulations including Tablets, Capsules, Liquid bottles, and Sachets across Women's Healthcare, Pain Management, Cardio-Diabeto, and Urology.

Brand Portfolio

B-29, VMN, Myoril, Tricium, Cortel, Obimet, Thyrocab, Dilo, Stelbid, and Vitneurin.

New Products/Services

Expansion into Nephrology, CNS, Oncology, and Dermatology; marketing to infertility specialists and IVF-focused chain hospitals for Women's Health growth.

Market Expansion

Targeting regulated overseas markets leveraging EU-GMP, WHO-GMP, and Uzbekistan GMP certifications.

Market Share & Ranking

Ranked 29th in the Indian Pharmaceutical Market (IPM) as of MAT Jun-25, up from 37th in MAT Jun-22.

Strategic Alliances

In-licensing arrangement with Ferring Pharmaceuticals (Switzerland) and backward integration partnership with La Chandra Pharmalabs.

🌍 External Factors

Industry Trends

The IPM Chronic segment (8.5-9.5% CAGR) is expected to outpace the Acute segment (7.5-8.5% CAGR) through FY30, favoring Corona's chronic-heavy portfolio.

Competitive Landscape

Outpacing IPM growth by 1.82x; competes with major players like Abbott, GSK, and Sanofi in specific therapy segments.

Competitive Moat

Durable advantages include EU-GMP certification for the Gujarat plant and strong brand recall in Women's Healthcare (#6 rank) and Pain Management (#5 rank), which are sustainable due to high regulatory barriers.