Margin turnaround driven by export mix; CDMO ramp early but unproven

Delivered revenue ₹191.5 Cr, actual YoY growth 25.4%

Delivered PAT ₹24.7 Cr, YoY growth 181% (1.81x implied prior)

Delivered OPM 17.3%, expansion corroborated in magnitude

Very early stage; total incremental ₹150 Cr from two partnerships over 2 years, not ₹200+ Cr in year 1

Mix shift toward higher-margin own-brands is credible driver of margin expansion

Initial ₹200-220 Cr → revised ₹100-130 Cr from Viatris, ₹150 Cr total over 2 years. Ramp slower than implied

57.2% vs 48% YoY; driving margin expansion. Ezetimibe+Atorvastatin tripled to ₹80.78 Cr in FY26

₹250 Cr capex over 2.5 years committed; Jammu facility EU-GMP planned; warehouse relocation underway

₹5-6 Cr booked Q1 from Viatris (Ibuprofen, Clarithromycin). Revised to ₹100-130 Cr Viatris alone, ₹200 Cr over 2 years, not 1 year.

Export business ~55% gross margins. Own-brand domestic 51%, CDMO 42%, ethical 76%.

Capex over 2.5 years into warehouse, facility enhancement, Jammu. No divestment of Synthimed planned; holding strategic stake; Synthimed budgeted ₹750 Cr EBITDA FY27, on track.

Yes, 18% fully sustainable; can reach 21-22% if sales grow QoQ. Not revising guidance now, will revisit by year-end if over-achievement.

No seasonality in export. Domestic slightly seasonal. CDMO ramps via Viatris, Arrotex, then Ibuprofen/Clarithromycin in Q3-Q4. Three-year roadmap ensures no capacity dearth.

Building own EU-GMP facility as priority. Acquiring domestic brands; discussing 3-4 overseas partnerships for tech transfer, but war delaying announcements. Too early for detail.

Minimum ₹1500 Cr revenue with ₹200+ Cr net profit (13%+ NPM). Margins sustainable across new molecules.

Two opportunities → ₹150 Cr incremental. Total export sales ₹750 Cr FY27; 45% from CDMO (~₹337 Cr CDMO in total, not pure incremental).

API had high leverage, long gestation; debt became unserviceable. Sold in FY24 for ₹2000-2100 Cr, paid off ₹1250-1300 Cr debt, netted ₹500 Cr cash. R&D in Panchkula doing regulatory, tech transfer, global filings; new facility planned. Working on molecules proven in API (Rosuvastatin, Mirabegron, Sitagliptin, Empagliflozin).

Yes, CDMO will triple over 3 years to ₹635 Cr (part of FY29 ₹1200 Cr). On addressable market, will revert via IR.

~70% utilized for Ibuprofen/granules; ~20% headroom available. Gradual capacity increase; 90% utilization by FY29.

400+ additions expected; from 2,100 to 2,500 by Q4 FY27.

Yes, confident on sustaining both metrics.

Capex ₹50-75 Cr; revenue ₹150+ Cr. Not naming yet; waiting for agreement signatures.

Minimum 50-55% gross margins. No therapeutic bias; customer-driven. Leverage molecules from prior API success (15-20 therapeutic categories). R&D costs borne by customer in most cases; development risk-free.

10+ year relationship supplying to Viatris. MD Sahil Munjal has strong reputation; Varun Chhabra (ex-API sales head) transferred to formulation 2 years ago, lending credibility.

Internally planning Q2, but full confidence Q3 FY27. Gross margins near 60% already.

Expecting ₹900 Cr FY27. Guidance subject to capacity expansion timing. May achieve FY29 target early if capex completes ahead; margin already built in.

Partnership with Tiffen-Becker; transfer pricing model. ₹25 Cr Q1 sales; we get 50% profits from their markup. Quarterly growth expected.

₹250 Cr over 2 years split across warehouse, capacity enhancement, Jammu. All three projects kick-started.

Well accepted. Q2 volumes expected to double vs Q1.

Assumes CDMO ramp in Q2-Q4 (Arrotex, Viatris QoQ doubling); Q1 only ₹5-6 Cr CDMO booked.

Subject to capacity expansion completion; CDMO partnerships scaling; management open to revise upward if execution strong.

Longer-term vision; no detailed mechanism provided; assumes sustained CDMO & own-brand growth.

Q1 delivered 17.91%; post-litigation cleanup complete; own-brand mix shift supports margin.

Depends on gross margin stability (55% export, 51% own-brand domestic) and cost leverage.

Assumes CDMO margins (43-55% gross) sustain and own-brand penetration continues.

Deployed across warehouse relocation, Jammu facility EU-GMP upgrade, existing capacity enhancement. All projects kicked off.

Contingent on deal closure; expected to unlock ₹150+ Cr revenue.

₹200-220 Cr FY27 CDMO guidance revised to ₹150 Cr over 2 years; Q1 contribution only ₹5-6 Cr signals slow ramp. Viatris expected to double volumes Q2 but full-year shortfall likely vs initial guidance.

70% capacity utilization in Q1 with only 20% headroom. Capex ₹250 Cr over 2.5 years may not support 50% FY27 revenue growth; timeline risk if facility upgrades delay.

Export own-brands 55% gross margin vs CDMO 43-55%; if CDMO grows faster and displaces own-brands in mix, blended margin could compress. Management targeting 18-22% EBITDA but volume leverage may not offset product mix headwind.

Two additional CDMO customers remain unnamed; management cited war delaying announcements. ₹50-75 Cr capex contingent on deal signatures; revenue upside (₹150+ Cr) depends on execution.

Domestic branded generics 6.41% (down from 10% YoY); ethical division 6.14% (down from 7% YoY). Deliberate shift to export focus but domestic cash generation declining.