Volume target hit, margins stable, Jammu ramp on track

33.9% revenue YoY, implied 33% EBITDA growth, 16% margin

22% volume YoY overall, 12-14% ex-Jammu confirmed

₹107 Cr Q1 revenue (vs ₹90 Cr Q4), low ramp validates guidance

16% delivered, gross margin 35.5%, compresses 1-1.5% YoY in normal course

CDMO ₹328.7 Cr (32% YoY), branded ₹142.2 Cr (39% YoY)

Delivered 22% volume YoY in weak Q1 (prior guidance 20%+). Confirms base business +early teens + Jammu topup = 20%+ company CAGR strategy.

Consolidated 16% vs. prior 15–16% ±2% band, ex-Jammu ~20%. No upgrade despite beat; MD capped long-term at 17–18%, not 20%.

MD disclosed ₹1,400 Cr peak revenue (65–70% utilization) vs. prior vague guidance. Runway 2–3 years at 25–30% current utilization.

Prior FY26 call mentioned ₹150–170 Cr Baddi plan. Now: 'still working to firm it up'—no timeline or capex guidance yet.

25–30% annualized based on Q1 performance. Asset turns target north of 3x at optimum utilization.

Maintaining 90 days ±10 days cash conversion cycle. Jammu working capital built up in prior year.

Q1: ₹107 Cr, Q4: ₹90 Cr. Ramp on track; Q1 is seasonal low, expect acceleration Q2 onwards.

Treats branded as normal CDMO customer on manufacturing side. Transfers on arm's-length basis. Industry standard practice.

Normal course due to business mix. Posted 35.5%, will maintain 35.5% ±2% for full year.

Volume 20–22% YoY, rest from favorable mix and pricing. Ex-Jammu volume 12–14%.

Positive EBITDA ₹1–1.5 Cr. Once mature, margin in line with base business (17–18%).

Volume growth always on volume basis. Maintaining 20%+ volume confidence. Price/mix volatile; focus on volume delivery.

Maintenance ₹20–25 Cr, growth ₹20–30 Cr. Baddi plan on same line; still firming up. Will inform when concrete.

Normalized margin 17–18%, not 20%. Jammu will contribute 17–18% once mature, lifting consolidated 2–3% from 16%.

Margin profile combination of business areas & geographies. Maintain 15–16% ±2% blended long-term. Not speculating on API prices; pass-through model.

Seasonal impact on Sharon; expect organic growth early-teens. 20%+ = early-teens base + Jammu flavor.

Status as is; closely watching development. Plant team working on batches.

₹1,400 Cr at 65–70% utilization. Margin profile in line with base (17–18%) once mature.

Already factored into revenue and profitability statements.

20%+ guidance based on volume only, price held constant. Should deliver 20%+ volume YoY by end-Q2.

Overall guidance 20% console-level only, not line-item. Challenges will exist but team will overcome.

Prices toward increase side. Pass-through model; able to pass through to customers.

Reaffirmed from prior FY26 call. 20-22% delivered Q1 supports confidence. Excludes price/mix volatility.

Sharon (~₹240 Cr baseline) early-teens + Jammu ramp = console 20%+ CAGR.

Q1 at 16%; repeated multiple times in Q&A; Jammu drag factored in, will normalize to 17-18% as plant matures.

For existing capability augmentation and debottlenecking only. Greenfield (Baddi) separate; still firming.

MD: 'plan on same line, still working to firm it up.' No board approval yet.

Jammu at 25-30% utilization, ₹107 Cr Q1 revenue. Peak ₹1,400 Cr at 65-70% requires 2-3 years. If regulatory approvals slip or customer onboarding lags, ramp timeline extends.

Branded generic (39% growth, lower margin) outpacing CDMO; Jammu at 1-1.4% margin drags consolidated 16% vs. ex-Jammu 20%. Full-year margin uplift capped at 17-18%, not 20%.

FY26 guidance: ₹150-170 Cr Baddi facility planned. Q1 call: 'still working to firm it up.' No board approval, no capex guidance, timeline unclear. Delay could constrain growth after Jammu plateau.

CDMO 70% of revenue (₹328.7 Cr). No detail on top-3 customer concentration or contract duration. Loss of major customer could significantly impact growth.

MD cited geopolitical reasons for price/mix volatility. API prices subject to global supply chain shocks. Pass-through model may lag if customer pushback increases.