INFLUX - Influx Health.

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

💰 Financial Performance

Revenue Growth by Segment

Total revenue grew 39% YoY to INR 66.8 Cr in H1 FY26. Nutraceuticals (90% of revenue) grew 36.3% from INR 44.1 Cr to INR 60.1 Cr; Cosmetics (5% of revenue) grew 61.9% from INR 2.1 Cr to INR 3.4 Cr; Ayurvedic (4% of revenue) grew 107.7% from INR 1.3 Cr to INR 2.7 Cr; Others grew 20% from INR 0.5 Cr to INR 0.6 Cr.

Geographic Revenue Split

The company exports to 11 countries. While specific regional percentages are not disclosed, management highlighted a significant focus on the US market following NSF certification and US FDA registration, with expectations for production to 'boom' in the coming months.

Profitability Margins

PAT margin improved significantly to 15.0% in H1 FY26, up 329 bps from 11.7% in H1 FY25. Net Profit Ratio for FY25 was 12.76% compared to 11.15% in FY24. Management expects these margins to be sustainable over the next three years due to the current product profile and client set.

EBITDA Margin

EBITDA margin stood at 22.0% in H1 FY26, a 302 bps increase from 18.9% in H1 FY25. Absolute EBITDA rose 61% YoY to INR 14.7 Cr, driven by operational efficiency and increased sales in key segments.

Capital Expenditure

Planned capex of INR 5-6 Cr for H2 FY26, including a retort plant and veterinary high-speed machines. The company is investing INR 11 Cr specifically for the veterinary segment (kibbles), targeting an asset turnover of 5-7x on this investment.

Credit Rating & Borrowing

Debt-Equity ratio improved by 57.30% to 0.006 in FY25 from 0.014 in FY24. Debt Service Coverage Ratio improved by 6890.32% to 22,523.99x as the company repaid interest-bearing loans.

⚙️ Operational Drivers

Raw Materials

Not specifically named in the documents, but identified as a key risk factor where price fluctuations impact margin volatility.

Capacity Expansion

Current capacity utilization is 65% for Nutraceuticals, 60% for Cosmetics, and 75% for Pet/Homecare. The company plans a 2.5x capacity expansion based on FY25 figures using IPO proceeds, including a new beverage line with a capacity of 10,000 bottles per hour.

Raw Material Costs

Cost of materials consumed was INR 37.5 Cr in H1 FY26, representing 56.1% of revenue, compared to 61.7% in H1 FY25 (INR 29.7 Cr). This 26% increase in absolute cost was lower than the 39% revenue growth, indicating better procurement or pricing.

Manufacturing Efficiency

The company operates 3 manufacturing units. Fixed asset turnover is targeted at 5-6 times. Automation initiatives, such as the automated beverage plant expected by June, are aimed at improving throughput.

📈 Strategic Growth

Expected Growth Rate

100%

Growth Strategy

The company aims to double revenue by FY27 through a 2.5x capacity expansion funded by IPO proceeds. Key strategies include entering the Ready-to-Drink (RTD) market via retort manufacturing, launching a high-capacity beverage line (10,000 bottles/hr), and expanding the veterinary segment (kibbles) which is expected to grow faster than nutraceuticals.

Products & Services

Multi-nutritional tablets, dietary supplements, cosmetics, ayurvedic/herbal products, veterinary feeds, and home care products.

Brand Portfolio

The company operates primarily as a CDMO (Contract Development and Manufacturing Organization) for clients like Carbamide (which accounts for 70-80% of its own business with Influx).

New Products/Services

New beverage line (RTD), retort packaging systems, and high-speed veterinary kibble production. Veterinary revenue is expected to grow from its current 1% base to a significant contributor over 3-4 years.

Market Expansion

Targeting the US export market following NSF certification. Tanzania market entry is pending a virtual audit scheduled for December 11.

Strategic Alliances

Strong alignment with client Carbamide; considering a dedicated manufacturing line/unit for them to support their hyper-growth and fixed volume take-off.

🌍 External Factors

Industry Trends

The wellness industry is shifting toward certified, clean-label products. The Indian manufacturing sector for pet food is currently dominated by imports (Pedigree, Royal Canin), providing a significant import-substitution opportunity for local CDMOs like Influx.

Competitive Landscape

Operates in a fragmented CDMO market with pricing pressure. Competes with both domestic manufacturers and international imports in the veterinary and nutraceutical spaces.

Competitive Moat

Moats include a 98% client retention rate, industry-leading certifications (NSF, US FDA, GMP, HACCP, ISO 22000), and a formulation-driven innovation model that creates high switching costs for clients.

Macro Economic Sensitivity

Sensitive to global demand for wellness products and preventive healthcare trends. Revenue is subject to fluctuations in raw material prices and forex swings.

Consumer Behavior

Rising interest in preventive healthcare and 'clean-label' wellness products is driving demand for the company's nutraceutical and ayurvedic segments.

Geopolitical Risks

Potential delays in international audits (e.g., Tanzania) due to political situations, though the company currently reports being on track for its December audit.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by FSSAI (India), AYUSH (Ayurveda), and US FDA regulations. Compliance includes GMP, HACCP, and ISO 22000:2018 Food Safety Management Systems.

Environmental Compliance

The company notes execution risks related to ESG compliance as a factor requiring agile innovation.

⚠️ Risk Analysis

Key Uncertainties

High revenue concentration in the nutraceutical segment (90%) and a limited client base (Top 10 = 30-40%) pose risks if market demand shifts or key clients migrate.

Geographic Concentration Risk

While exporting to 11 countries, the company faces execution risks in expanding its international footprint and meeting evolving global regulatory standards.