FDC LTD. Q1 FY26 Results

Commenting on the results; We reported a stable performance in Q1FY26, with operating revenue of 648 crore, marking a moderate growth of 1.6% YoY. India formulation business showed a growth of 5.6% increase, Export formulation business was down by 33.8% YoY and API business showed growth of 3.3% YoY. The US business shows good signs of recovery as the past challenges of recall related issues and revisions in API impurities standard by FDA are now addressed and business has shown good momentum with revenue of INR 11.6 cr from supplies made during Q1FY26, reflecting a 106% YoY growth. However, overall revenue of US business is down by 22.2% YoY primarily due to lower profit share from the US partners in view of lower sales during FY 25, which was affected by recall-related issues and pending clarification from FDA regarding impurity standards of the API used in the formulation. The FDA has now issued the clarification on impurities standards and supplies have now resumed. Emerging market business was down by 39% YoY with revenue of INR 26 cr. This downward trend is primarily due to supply challenges and therefore, some of the orders shifted to Q2FY26. The order pipeline is healthy, and management expects to address the supplies challenges in coming quarters. API business showed moderate revenue growth of 3.3% YoY with revenue of INR 26 cr. Our EBITDA stood at 140 crore, with margins at 21.6% compared to 23.0% last year. EBITDA is down majorly due to certain strategic expenditure incurred for future business growth particularly higher Research and Development expenses grew by 271.4% YoY with costs of INR 8.5 cr and higher employee costs for moderate expansion of field force and incremental manpower for ORS manufacturing capacity expansion at the plants.