💰 Financial Performance

Revenue Growth by Segment

Regulated Markets grew 86.9% YoY to INR 106.9 Cr in Q2 FY26; Emerging Markets declined 13.4% YoY to INR 31.7 Cr; Branded Generics grew 1337.3% YoY to INR 11.9 Cr; API segment declined 20.5% YoY to INR 2.9 Cr.

Geographic Revenue Split

Regulated Markets (US, Canada, UK) contributed 69.7% of Q2 FY26 revenue (INR 106.9 Cr); Emerging Markets contributed 20.7% (INR 31.7 Cr); Branded Generics (India) contributed 7.8% (INR 11.9 Cr).

Profitability Margins

Gross Margin improved to 64.7% in Q2 FY26 (up 1,230 bps YoY); EBITDA Margin reached 30.6% (up 750 bps YoY); PAT Margin stood at 18.6% (up 560 bps YoY).

EBITDA Margin

EBITDA Margin was 30.6% in Q2 FY26, a 750 bps increase from 23.1% in Q2 FY25, driven by a higher share of own ANDA product launches which carry 40-42% margins.

Capital Expenditure

Planned Capex of INR 107.0 Cr for a sterile injection manufacturing facility in Atlanta; INR 154.8 Cr allocated for inorganic growth and strategic initiatives.

Credit Rating & Borrowing

Company plans to use INR 73.1 Cr for full/partial repayment of borrowings and INR 20.2 Cr for subsidiary Havix's debt repayment. Specific interest rates not disclosed.

⚙️ Operational Drivers

Raw Materials

Not disclosed in available documents; COGS represented 37.2% of revenue in Q2 FY26 (INR 57.1 Cr).

Key Suppliers

Not disclosed in available documents; management notes dependence on a limited supplier base as a risk.

Capacity Expansion

US facility expanding from 1.2 billion units to 2 billion units; 3rd manufacturing line operational in Q3 FY26 and 4th line by end of FY26.

Raw Material Costs

Total COGS for H1 FY26 was INR 118.4 Cr, representing 39.5% of total income, compared to INR 82.5 Cr in H1 FY25.

Manufacturing Efficiency

Capacity utilization is being optimized through the addition of new manufacturing lines in the US to reach 2 billion units to support a 25%+ growth target.

📈 Strategic Growth

Expected Growth Rate

25%

Growth Strategy

Growth driven by 4 pillars: (i) Expansion of ANDA portfolio in Regulated Markets; (ii) Scale-up of CDMO/CMO segment; (iii) Portfolio expansion in Emerging Markets; and (iv) Scale-up of Branded Generics in India.

Products & Services

Pharmaceutical formulations including Tablets, Capsules, Sterile Injections, and Controlled Substances; also provides CDMO/CMO services and management consultancy.

Brand Portfolio

Senores, Havix, Ratnatris.

New Products/Services

Planned new product launches every quarter for the next 4-5 quarters; 86 new approvals received in Emerging Markets during Q2 FY26.

Market Expansion

Expanding US manufacturing footprint in Atlanta and increasing penetration in Emerging Markets through 86 new product approvals.

Strategic Alliances

Utilizes profit-share models with marketing partners for own ANDA products, supplemented by licensing fees and COGS reimbursement.

🌍 External Factors

Industry Trends

Industry involves a 5-year journey from development to commercialization; shift toward own ANDA launches is driving margin expansion from 35% toward 40-42% in regulated markets.

Competitive Landscape

Competes in the global generic and CDMO markets; management focuses on 'mid-tier standardized markets' to avoid high-competition segments.

Competitive Moat

Moat built on US-based manufacturing for controlled substances, a diversified business model (CDMO + Own Products), and a strong pipeline of 86+ new approvals.

Geopolitical Risks

Geographical concentration risk in the US market; regulatory changes in pharmaceutical standards could trigger litigation or product bans.

⚖️ Regulatory & Governance

Industry Regulations

Compliance with US FDA, Indian Accounting Standards (Ind AS), and Section 133 of the Companies Act, 2013.

Environmental Compliance

Subject to various environmental laws regarding prevention and control of pollution; specific costs not disclosed.

Taxation Policy Impact

Effective tax rate resulted in INR 15.8 Cr tax expense for H1 FY26 on PBT of INR 67.1 Cr (~23.5%).

⚠️ Risk Analysis

Key Uncertainties

Regulatory non-compliance risk could trigger product bans or penalties; 180-day exclusivity periods for generics create revenue cliffs if new products aren't launched.

Geographic Concentration Risk

High concentration in Regulated Markets, specifically the US, which accounts for the majority of the INR 106.9 Cr regulated market revenue.

Third Party Dependencies

Dependence on a limited supplier base for raw materials is identified as a key supplier-related risk.

Credit & Counterparty Risk

Trade receivables stood at INR 3.67 Cr as of March 31, 2025.