INNOVACAP - Innova Captab

📊 NSE: INNOVACAP 🏢 Pharmaceuticals - Indian - Bulk Drugs & Formln 📅 Last Updated: 12/14/2025 8:06

💰 Financial Performance

Revenue Growth by Segment

The CDMO business grew 15% YoY in Q2 FY26 (INR 265.7 Cr) and 12% in H1 FY26 (INR 515.2 Cr). The Branded Generics business grew 31% YoY in Q2 FY26 (INR 114.6 Cr) and 43% in H1 FY26 (INR 216.7 Cr).

Geographic Revenue Split

Exports contributed 30% to the overall revenue mix in both Q2 FY26 and H1 FY26, reflecting a well-diversified geographical presence.

Profitability Margins

PAT margins were approximately 8% in Q2 FY26. Sharon Bio-Medicine (subsidiary) reported a profit after taxation of INR 23.18 Cr on revenue of INR 197.48 Cr for FY25.

EBITDA Margin

EBITDA margin was 14.7% in Q2 FY26 and 15.4% in H1 FY26. EBITDA grew 8% YoY to INR 56.1 Cr in Q2 FY26 and 17% YoY to INR 112.6 Cr in H1 FY26.

Capital Expenditure

The company raised INR 293.11 Cr (net of expenses) through an IPO in December 2023, utilized for debt reduction and funding a greenfield manufacturing unit at Kathua, Jammu.

Credit Rating & Borrowing

Long-term bank facilities (INR 389.38 Cr) are rated CARE A; Positive (outlook revised from Stable in Sept 2025). Short-term facilities (INR 20.00 Cr) are rated CARE A1.

⚙️ Operational Drivers

Raw Materials

Active Pharmaceutical Ingredients (APIs) are the primary raw materials. Specific categories include Cephalosporin-related inputs.

Capacity Expansion

Operationalized a new greenfield manufacturing unit at Kathua, Jammu. The Cephalosporin plant in Baddi successfully passed a UK-MHRA inspection.

Raw Material Costs

API prices have been declining, which pressured CDMO revenue, though signs of price stabilization were noted in Q2 FY26.

Manufacturing Efficiency

Average utilization of working capital limits remained low at approximately 27% for the 12-month period ended June 2025.

📈 Strategic Growth

Expected Growth Rate

20%

Growth Strategy

Growth is driven by the operationalization of the Jammu plant, deepening engagement with 300+ global clients, expanding the product portfolio, and geographic diversification into markets like the UK and Ukraine.

Products & Services

Generic formulations, contract-based pharmaceutical formulations (CDMO), and branded generics.

Brand Portfolio

Innova Captab (Corporate Brand). Specific consumer brand names are not disclosed in available documents.

New Products/Services

Expansion of the Cephalosporin product line and new stability batches from the Jammu facility are expected to drive near-term scale-up.

Market Expansion

Targeting international markets following successful inspections by the UK-MHRA (United Kingdom) and SMDC (Ukraine).

🌍 External Factors

Industry Trends

The pharmaceutical industry is highly competitive and fragmented, with a shift toward stringent global quality standards and increased outsourcing to CDMOs.

Competitive Landscape

Characterized by a large number of small and big players in the generic and contract manufacturing space.

Competitive Moat

Moat is built on long-term client relationships, adherence to global quality standards (UK-MHRA), and a robust product pipeline.

Macro Economic Sensitivity

Sensitive to API price fluctuations and global regulatory standards for pharmaceutical manufacturing.

Geopolitical Risks

Exposure to international regulatory bodies like the UK-MHRA and Ukraine's SMDC for market access.

⚖️ Regulatory & Governance

Industry Regulations

Operations are governed by the Drugs Control Act, 1950; The Narcotic Drugs and Psychotropic Substances Act, 1985; and GMP standards.

Environmental Compliance

The company has implemented an ESG Policy and filed its Business Responsibility and Sustainability Report (BRSR) for FY25 with no recorded non-compliance.