💰 Financial Performance

Revenue Growth by Segment

The company operates in a single segment: Pharmaceutical Intermediates and APIs. Total revenue from operations for FY25 was INR 150.80 Cr, representing an 11.20% decrease from INR 169.82 Cr in FY24. However, Q2 FY26 showed a recovery with revenue of INR 42.35 Cr, a 21.98% YoY growth compared to INR 34.72 Cr in Q2 FY25.

Geographic Revenue Split

Not explicitly disclosed in percentage terms, though the company notes that Indian generic medicines (which it supplies) account for 20% of global volume, with nearly 50% of that being exported.

Profitability Margins

Profitability remains healthy but has seen compression due to capex. PAT margin for FY25 was 32.34%, which moderated to 29.82% in H1 FY26. Q2 FY26 PAT margin improved to 33.68% (up 330 bps YoY) due to higher production volumes and cost optimization offsetting manpower costs.

EBITDA Margin

EBITDA margin for Q2 FY26 stood at 49.46%, an improvement of 520 bps YoY from 44.26%. For the full year FY25, EBITDA was INR 68.84 Cr, a decline of 12.56% YoY, with margins historically maintained between 45% and 50%.

Capital Expenditure

The company is executing a major fermentation capacity expansion with a total estimated cost of INR 155.62 Cr. As of March 31, 2025, INR 52.43 Cr has been incurred. Additionally, an API manufacturing capex for Rifapentine and Rifamycin was completed and commenced operations in May 2025.

Credit Rating & Borrowing

The company maintains a 'Stable' outlook. Borrowing includes a sanctioned term loan of INR 75 Cr for the fermentation project, of which INR 28.64 Cr was utilized by March 2025. Interest costs increased in FY25, leading to a total debt to gross cash accruals (TD/GCA) ratio of 0.56x compared to 0.04x in FY24.

⚙️ Operational Drivers

Raw Materials

The primary raw material is Rifabutin, which is used for the production of Rifamycin S and Rifamycin O. Raw material costs (including inventory changes) for FY25 were INR 24.51 Cr, representing approximately 16.25% of total revenue.

Import Sources

Rifabutin is primarily sourced through the domestic market in India.

Key Suppliers

Specific supplier names are not disclosed, but the supplier profile is highly concentrated, with the top 10 suppliers contributing 84% of total purchases in FY24.

Capacity Expansion

Current installed capacity is 216,000 kg (216 MT) of Rifamycin S and Rifamycin O per annum. The company is expanding fermentation capacity to 432 MT (a 100% increase), expected to be operational by the end of FY26.

Raw Material Costs

Raw material costs for FY25 were INR 24.51 Cr, down from INR 36.68 Cr in FY24. Profitability is highly susceptible to price volatility in these inputs, which the company manages through efficiency measures and long-standing supplier relationships.

Manufacturing Efficiency

The company maintains optimal utilization of its 216 MT capacity. Efficiency is further driven by CGMP-approved facilities and specialized fermentation processes.

Logistics & Distribution

Not disclosed as a specific percentage of revenue.

📈 Strategic Growth

Expected Growth Rate

66%

Growth Strategy

Growth is targeted through doubling fermentation capacity from 216 MT to 432 MT by FY26 and forward integration into higher-value APIs like Rifapentine. The company aims to reach a Total Operating Income exceeding INR 250 Cr (a 66% increase from the FY25 base of INR 150.80 Cr) to trigger positive credit rating actions.

Products & Services

Key products include Rifamycin S and Rifamycin O (intermediates), and newly launched APIs Rifapentine and Rifamycin.

Brand Portfolio

The company operates as a B2B manufacturer under the Gujarat Themis Biosyn Limited (GTBL) corporate identity; individual consumer brand names are not applicable.

New Products/Services

New API products Rifapentine and Rifamycin commenced commercial operations in May 2025. These are expected to drive revenue growth as the API unit stabilizes.

Market Expansion

Expansion is focused on forward integration into the API market and increasing the product portfolio with new fermentation-based molecules.

Market Share & Ranking

Identified as one of India's few fermentation-based intermediate manufacturers, though specific market share percentage is not disclosed.

Strategic Alliances

The company has a 5-year contract with Lupin Limited and an annually renewed 'take or pay' agreement with Optrix Laboratories Private Limited.

🌍 External Factors

Industry Trends

The industry is shifting toward specialized fermentation-based APIs. GTBL is positioning itself by doubling capacity and moving from intermediates to final APIs to capture higher value-add.

Competitive Landscape

The market is fragmented and intensely competitive, featuring both large domestic pharmaceutical firms and low-cost Chinese producers.

Competitive Moat

The moat is built on specialized fermentation-based methodologies and R&D capabilities which are capital-intensive and technically complex to replicate, providing a barrier to entry against generic chemical manufacturers.

Macro Economic Sensitivity

Highly sensitive to the performance of the Indian pharmaceutical industry and broader economic conditions which affect healthcare spending.

Consumer Behavior

Increased global demand for anti-tuberculosis drugs (derived from Rifamycin) is a primary driver for product demand.

Geopolitical Risks

Competition from Chinese manufacturers in the fermentation space poses a risk to margins and supply chain stability for raw materials.

⚖️ Regulatory & Governance

Industry Regulations

Operations must comply with Current Good Manufacturing Practice (CGMP) standards. The Vapi plant is CGMP-approved, which is essential for maintaining supply contracts with major pharma players like Lupin.

Environmental Compliance

The company has invested in an automatic tube cleaning system to improve efficiency and reduce environmental footprint; specific compliance costs in INR are not disclosed.

Taxation Policy Impact

The effective tax rate for H1 FY26 was approximately 24.4% (INR 7.55 Cr tax on INR 30.88 Cr PBT).

⚠️ Risk Analysis

Key Uncertainties

Project execution risk for the INR 155.62 Cr fermentation expansion; any delay beyond the FY26 operational timeline could impact liquidity and debt servicing metrics.

Geographic Concentration Risk

Manufacturing is concentrated at a single site in Vapi, Gujarat, making the company vulnerable to regional industrial disruptions.

Third Party Dependencies

98% of revenue is dependent on just two customers (Lupin and Optrix), creating extreme counterparty risk.

Technology Obsolescence Risk

The company mitigates technology risk by investing 4% of revenue into R&D to evolve fermentation methodologies.

Credit & Counterparty Risk

Liquidity is adequate with INR 15.17 Cr in free cash/FDs. Current ratio stood at 2.61x as of March 2025, down from 4.96x in FY24 due to capex-related debt and payables.