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SMS Pharmaceuticals Results: Latest Quarterly Results & Analysis

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SMS Pharmaceuticals Ltd. 10 Nov 2025 18:38 PM
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Q2FY26 Quarterly Result Announced for SMS Pharmaceuticals Ltd.

Pharmaceuticals company SMS Pharmaceuticals announced Q2FY26 results

  • Revenue grew 23% YoY driven by higher volumes and market share gains
  • Gross margin expanded 30% YoY, driven by backward integration
  • EBITDA increased 54% YoY, aided by operating leverage
  • PAT stood at Rs 25.32 crore, up by 80% YoY; Record highest in a quarter
  • Operating cash flows remained strong, supporting ongoing capex
  • Rs 280 crore Capex programme on track for completion by November 2026
  • On track to achieve our FY26 outlook

P. Vamsi Krishna, Executive Director, stated: "We concluded Q2FY26 on a strong note with 80% PAT growth YoY. We continued to see strong demand across our diversified portfolio, with market share gains in key APIs driving revenue growth. This quarter marks an inflection point as our backward integration efforts are now driving margin expansion. This has strengthened our value proposition to existing customers and is helping us expand our customer base in regulated markets.

Our R&D has delivered strong outcomes over the past few years, with successful product launches that continue to see a strong demand and an expanding presence in regulated markets. We are strengthening this capability further — with a dedicated team of over 100 scientists today, we plan to double our R&D strength over the next two years. To date, we have filed over 120 DMFs and aim to add around 30 more over the next 24–30 months.

The Rs 280 crore capex programme, to be completed by November 2026, will enhance capacity for existing APIs and build capacities for new product pipeline. This includes a Rs 30 crore outlay for acquiring land for a greenfield project. Investments have also begun in R&D for the peptide initiative, with commercial operations targeted to begin in FY29. Together, these initiatives provide a clear path for growth over the next 24–30 months.

Our continued focus on product mix optimisation, backward integration, economies of scale and pipeline of new products will enable us to achieve our target of 20% revenue growth and EBITDA margin expansion to 20% in FY26."

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Pharmaceuticals company SMS Pharmaceuticals announced Q1FY26 results

  • Revenue from operations in Q1FY26 was Rs 196.05 crore, up 19% YoY.
  • Gross margins grew by 12% YoY to reach Rs 65.35 crore
  • EBITDA for Q1FY26 rose by 17% YoY to reach Rs 39.37 crore.
  • EBITDA margin stable at 20%, improving 364 bps sequentially but down 30 bps YoY.
  • PAT was Rs 20.50 crore, up 24% YoY.
  • PAT margin was stable at 10% in Q1FY26.

P. Vamsi Krishna, Executive Director, said: "We commenced FY26 on a strong footing, driven by our diversified product portfolio and notable client wins in key APIs. We made strong progress on our strategic roadmap, laying a solid foundation for the next five years of growth.

Our joint venture with Chemo continues to be value accretive, with our anti-diabetic portfolio gaining market share in Europe. We are also deepening our strategic partnership with them through an expanded basket of anti-diabetic products. In Ibuprofen, we continue to see growing demand, supported by strong visibility in regulated markets and a competitive cost position driven by improved processes and plant engineering.

We have successfully commissioned our backward integration project. This milestone marks a critical step in strengthening our supply chain and improving cost efficiencies. The project has delivered the desired outcomes in quality and performance, and we are now scaling up production. With full backward integration now in place for our key APIs, we expect to see a meaningful improvement in margins over the next few quarters.

On the R&D front, we have established a robust pipeline of high-potential molecules. In the next 18 months, we aim to accelerate regulatory momentum with multiple DMF, CEP, and dossier filings, targeting around 30 submissions over the next three years.

We will be doubling our R&D spend over the next 18 months. Our peptide-focused subsidiary has commenced construction of its dedicated R&D facility, while the capex plan for a CDMO greenfield site in Andhra Pradesh has been finalised, with land acquisition underway.

To support these initiatives, we are undertaking a Rs 250 crore capacity expansion programme, which will be funded through a mix of internal accruals and debt. Our disciplined capital allocation strategy will support sustained revenue growth alongside continued margin expansion.

We remain on track to achieve our targeted 20% revenue growth for FY26 with an EBITDA margin above 20%, translating to an asset turnover ratio of ~1.0x, among the best in the industry. Our growth will continue to be driven by a diversified product mix, a strong pipeline of new products and our proven execution capabilities".

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Pharmaceuticals company SMS Pharmaceuticals announced Q4FY25 & FY25 results

Q4FY25 Financial Highlights:

  • Revenue from operations in Q4FY24 was Rs 248.20 crore, up 1% YoY, driven by strong demand for key APIs.
  • PAT for Q4FY25 stood at Rs 20.31, up 18%
  • In Q4FY25, gross margins improved to 30%, an increase of 444 bps year-on-year, driven by backward integration, product mix, and a stable pricing environment.
  • EBITDA margins for Q4FY25 stood at 16%, up 277 bps year-on-year, and PAT margins rose to 8%.

FY25 Financial Highlights:

  • For FY25, revenue from operations reached Rs 782.75 crore, reflecting a 10% YoY growth. We witnessed healthy growth in our high-value product portfolio.
  • PAT for FY25 stood at Rs 69.14, up by 39%
  • For FY25, gross margin increased to 33%, EBITDA margin to 18%, and PAT margin improved to 9%.
  • The Board has recommended a final dividend of Rs 0.4 (40%) per equity share with a face value of Rs 1 each for FY25.
  • New Capex of Rs 250 crore to expand capacity for new products and CMO busines

Commenting on the performance, P. Vamsi Krishna, Executive Director, stated: We concluded FY25 on a strong note with 39% PAT growth, driven by volume growth and margin expansion. This was made possible by the disciplined execution of our strategy over the past four years: strengthening and diversifying our product portfolio, driving operational efficiencies, and achieving cost leadership through backward integration and scale.

A key milestone was the successful ramp-up of ibuprofen, positioning us among India’s leading producers. We also onboarded several large customers across our API portfolio, further strengthening long-term revenue growth. With the backward integration project completed, key APIs at the take-off stage, and a new Capex plan underway, we are entering FY26 with strong momentum and greater earnings visibility. We are also building a robust pipeline of new molecules to drive long-term growth.

Result PDF

Pharmaceuticals company SMS Pharmaceuticals announced Q3FY25 results

  • Revenue from operations in Q3FY24 was Rs 173.35 crore, up 7% YoY, driven by strong demand.
  • In Q3FY25, gross margins improved to 39%, up 729bps YoY and 870bps sequentially.
  • EBITDA margins for Q3FY25 stood at 19%, up 120bps YoY and 316bps sequentially.
  • PAT rose to Rs 18.24 crore, up 341bps YoY and 336bps sequentially, with PAT margin expanding to 11%.

P. Vamsi Krishna, Executive Director, said: “We continued to see healthy volume demand for our products, supported by notable client wins across key APIs an encouraging sign for future growth. While we are navigating pricing pressures, our focus on profitability has kept margins strong and steady. Looking ahead, we expect to end the year on a strong note. The second phase of our backward integration project, set to begin commercial production in March 2025, will drive margin expansion from FY26 onwards. Our CMO business is also set to take off and contribute to our performance. Additionally, our capacity expansion remains on track, enabling us to scale volumes across our key APIs.”

Result PDF

Highlights:

  • Revenue grew by 34% YoY
  • EBITDA Margin expanded by 867bps to 27.6%, driven by improved product mix and realisations
  • Profit after tax (PAT) grew by 123% YoY

Commenting on the results Mr. P. Vamsi Krishna, Executive Director - SMS Pharmaceuticals Limited said, "The company continued to maintain the robust growth trajectory. For Q2FY22, thecompany registered revenue, EBITDA and PAT growth of 34%, 96% and 123%, respectively, on YoY basis. EBITDA margins expanded approximately by 870bps. The robust performance was driven by improved product mix, pick-up in the key therapeutic areas and the operating leverage. This performance a testimony of company's agility, adaptability and strong execution capabilities. The growth trajectory is expected to accelerate in the upcoming quarters underpinned by company's leadership position in top therapeutic areas, strong demand, healthy product launch pipeline.

SMS Pharma, as a strategy, has focused on quality, market leadership and backward integration steered by strong R&D capabilities, in top therapeutic areas such as ARV, anti-migraine and anti ulcer over the years. This strategy has boded well, as the company did not witness any impact by recent supply chain disruptions and higher input costs. It has also reduced the import dependency on China significantly for KSMS and key raw materials.

Company's global presence, strong domain expertise, cost leadership, economies of scale and long standing relationships with suppliers and customers has created a unique value proposition. As a result, SMS Pharma has emerged as sustainable, scalable and self-reliant API player. Going forward, the company will continue to invest in backward integration to further strengthen the value proposition. The company is also leveraging long-standing relationships and domain expertise to foray into new therapies, products and geographies.

The company has incurred a capex of Rs. 198 crores in FY21 aimed towards capacity augmentation at the Vizag plant. This brownfield capex is aimed towards capacity augmentation multiple products and therapies. The incremental capacity addition through the capex is 1,300 KL, predominantly aimed towards Ibuprofen capacity expansion. With this capex, company is expected to be one of the largest Ibuprofen manufacturers globally. Majority of the capex is funded through internal accruals and minimal debt, thus maintaining the robust Balance Sheet position. Higher margins and profitability ratios expected through operating leverage and incremental revenue. This capacity augmentation is expected to commercialize fully by the end of FY22.

Multiple industry tailwinds such as favourable geo-political conditions, Make in India, PLI Scheme, China 1 strategy, cost structure coupled with internal triggers such as capacity expansion, leadership position in key therapies and strong balance sheet are expected to drive the next leg of growth along with improved margins and return ratios."

 

 

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