This article first appeared on GuruFocus .
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Quarterly Revenue:INR 439 crores, a growth of 30% year-on-year.
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Annual Revenue:INR 1,549 crores, growing at 18% year-on-year.
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Gross Margin:68% for the quarter and 70% for the full year.
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Quarterly EBITDA:INR 121 crores, a growth of 40% year-on-year with a margin of 28%.
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Annual EBITDA:INR 445 crores, reflecting a growth of 30% year-on-year with a margin of 29%.
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Adjusted PAT:INR 87 crores for the quarter and INR 232 crores for the full year, growing at about 135% year-on-year.
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Net Debt:Increased to INR 613 crores from INR 550 crores in the previous year.
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CapEx:INR 361 crores in FY26, primarily funded by internal accruals.
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Adjusted ROCE:Improved from 4% in FY23 to 17.4% in FY26.
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API Business Revenue:INR 259 crores for the quarter and INR 985 crores for the full year, growing at 16%.
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Formulation Revenue:INR 205 crores for the quarter, growing at 54% year-on-year, and INR 618 crores for the full year, growing at 30% year-on-year.
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Biologics Revenue:INR 150 crores for the year, growing roughly 100% year-on-year.
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Release Date: May 22, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
Positive Points
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Shilpa Medicare Ltd ( BOM:530549 ) reported its highest-ever quarterly revenues of INR 439 crores, marking a 30% year-on-year growth.
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The company achieved a gross margin of 68% for the quarter and 70% for the full year, indicating strong profitability.
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EBITDA for the quarter grew by 40% year-on-year to INR 121 crores, with a margin improvement of 2% year-on-year.
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The API business showed steady growth, with significant contributions from new oncology products and a robust pipeline.
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The biologics segment experienced a 100% year-on-year growth, driven by strong CDMO business momentum and new biosimilar additions.
Negative Points
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US formulation revenue growth has been flat, despite market share gains by US partners.
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The company faces challenges in the US market due to discontinued sales of certain generic products like azacitidine.
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There is uncertainty regarding the timeline for the launch of key products like NorUDCA in global markets.
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The company has not provided specific guidance on future revenue growth, creating uncertainty for investors.
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There are concerns about the impact of increased raw material prices on the company's cost structure.
Q & A Highlights
Q: Why hasn't Shilpa Medicare's US formulation revenue grown significantly despite the US partner's market share gains? A: Keshav Bhutada, CEO, explained that while there has been an increase in revenue, the company has stopped selling the generic product azacitidine in the US due to unsustainable margins. The focus is now on super specialty products, which will likely drive growth in FY27.
Q: What is the expected growth trajectory for NorUDCA in FY27? A: Keshav Bhutada, CEO, noted that NorUDCA was launched in Q3 FY26 and has seen steep growth quarter-on-quarter. The company expects to have a clearer picture of its trajectory by the second quarter of FY27, as the product's treatment duration is six months.
Q: Can Shilpa Medicare achieve an EBITDA margin of 35% in the next one to two years? A: Alpesh Dalal, CFO, stated that while operational leverage will help improve margins, reaching a 35% EBITDA margin is ambitious. The company will continue to invest in growth, which may impact immediate margin expansion.
Q: What are the growth expectations for the European formulation business in FY27? A: Keshav Bhutada, CEO, mentioned that while specific guidance isn't provided, the European business is expected to have healthy growth, driven by new product launches like Rotigotine and other generics.
Q: What are the key growth drivers for the biologics business in FY27? A: Keshav Bhutada, CEO, highlighted that CDMO and licensing income will be the main growth drivers. The company is working on multiple CDMO programs and plans to partner biosimilar and ADC products in Europe and ROW markets.
For the complete transcript of the earnings call, please refer to the full earnings call transcript .
