WANBURY - Wanbury

📊 NSE: WANBURY 🏢 Pharmaceuticals - Indian - Bulk Drugs & Formln 📅 Last Updated: 12/14/2025 15:14

💰 Financial Performance

Revenue Growth by Segment

API revenue grew 8.2% YoY to INR 277 Cr in H1 FY26, while Formulations revenue grew 17.6% YoY to INR 40 Cr in H1 FY26. Total revenue for H1 FY26 was INR 323.2 Cr, up 10.57% YoY from INR 292.3 Cr.

Geographic Revenue Split

80% of revenue is derived from Exports, with 65% of that comprising regulated markets. Domestic sales contribute the remaining 20% of the total revenue mix.

Profitability Margins

Gross Margin improved from 39% in FY23 to 56.11% in H1 FY26. PAT Margin turned positive from -2.08% in FY23 to 5.28% in FY24 and reached 8.87% in H1 FY26 due to operational efficiencies and debt restructuring.

EBITDA Margin

EBITDA Margin was 15.7% in H1 FY26, a significant improvement from 4.7% in FY23. EBITDA scaled up ~3X between FY23 and FY25 through de-bottlenecking and production scale-up.

Capital Expenditure

Planned Capex of INR 64 Cr in FY25 (INR 38 Cr for new products, INR 14 Cr for de-bottlenecking) and INR 63 Cr in FY26 (INR 45 Cr for a new production block and clean rooms).

Credit Rating & Borrowing

Credit rating is IVR C+/Negative (Issuer Not Cooperating) as of October 2024. Borrowing costs were reduced from 22.5% to 12.5% effective March 1, 2025, following the exit of high-cost private financial agreements.

⚙️ Operational Drivers

Raw Materials

Key raw materials are chemical precursors for Metformin and Sertraline; COGS represented 44% of revenue in H1 FY26 (INR 142.4 Cr).

Import Sources

Not specifically disclosed in available documents, though the company exports to 50+ countries and operates in global API markets.

Capacity Expansion

Metformin capacity is 8,500 tons per year (largest manufacturer globally). Capacity for Metformin and Sertraline increased by 25% and 20% respectively over the last 3 years through de-bottlenecking.

Raw Material Costs

COGS as a % of revenue decreased from 60.7% in FY23 to 44% in H1 FY26, reflecting efficient procurement practices and technical savings.

Manufacturing Efficiency

Capacity ramp-up achieved through de-bottlenecking projects; cumulative reactor capacity stands at 386 KL across 2 USFDA approved facilities.

📈 Strategic Growth

Expected Growth Rate

10.60%

Growth Strategy

Growth will be driven by launching an Anaesthetic in Q4 FY26 and a pipeline of 4 new molecules commercialized each year starting next FY. Strategic focus includes brownfield expansion, entering China/Brazil markets, and scaling top brands in Formulations to achieve sustainable profitability by FY27.

Products & Services

API products including Metformin, Sertraline, and Anaesthetics. Branded Formulations include C Pink and Wanbury C RED.

Brand Portfolio

C Pink, Wanbury C RED.

New Products/Services

Launch of an Anaesthetic in Q4 FY26 and 4 new molecules per year starting FY27; Formulations business achieved financial break-even in H1 FY26.

Market Expansion

Expanding regulatory footprints in China (expecting approval for 1 more API) and Brazil (ANVISA approved in Dec 2024).

Market Share & Ranking

Largest manufacturer of Metformin globally with 8,500 tons/year; globally significant market share in Sertraline.

Strategic Alliances

Historical strategic alliance with Wyckoff Chemicals (US) for API manufacturing.

🌍 External Factors

Industry Trends

The industry is shifting toward chronic therapies; Wanbury has aligned 100% of its API portfolio to chronic segments. The company is positioned to benefit from the 10.6% growth trend seen in H1 FY26.

Competitive Landscape

Wanbury is a mid-size pharma company ranked among the Top 50 in India (ORG-IMS), competing in the global API and domestic branded formulation markets.

Competitive Moat

Moat is built on being the world's largest Metformin producer and having long-standing USFDA approvals (since 2000). This cost leadership and regulatory track record are highly sustainable due to high entry barriers in regulated API markets.

Macro Economic Sensitivity

Sensitivity to global pharmaceutical demand and regulatory changes in the US and Europe, which govern 65% of export top-line.

Consumer Behavior

Increased demand for chronic disease management (Diabetes/Metformin) is driving long-term volume growth.

Geopolitical Risks

Exposure to trade barriers in regulated markets; mitigating this by expanding into China and Brazil.

⚖️ Regulatory & Governance

Industry Regulations

Subject to USFDA (last inspection 2024, zero 483), EDQM (Europe), ANVISA (Brazil), and WHO GMP regulations. Compliance is mandatory for 80% of revenue derived from exports.