SMS Pharmaceuticals Limited has informed the Exchange about Transcript
SMSPHARMA · price
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Awaiting price reaction for this filing.
SMS Pharma reported a strong FY25 with PAT growing 39% YoY to INR69 crores, supported by 10% revenue growth to INR783 crores and 330 bps gross margin expansion to 33%. Q4 revenue surged 43% to INR248 crores, driven by strong traction in anti-inflammatory (up 22%) and ARV (up 15%) segments, plus a 106% jump in anti-epileptic. The company launched Asia's largest automated ibuprofen production block, invested INR150 crores in backward integration, and cleared US FDA and EU GMP audits. For FY26, management is guiding 20% revenue growth and 20% EBITDA margin expansion, backed by a new INR250 crore capex plan over 18 months and a target to scale ibuprofen volumes from 2,200 MT to 5,000 MT. Concerns persist around elevated inventory (INR285 crores, ~7-8 months of sales) and debt of INR311 crores, though management committed to inventory reduction.
The upbeat FY26 guidance on both revenue and EBITDA margins, coupled with clear backward integration benefits flowing in from Q2 FY26, is likely to support a positive stock reaction. However, high working capital intensity, elevated debt, and an asset turnover of just 0.67 (vs. target of 1.0) remain key concerns for investors to monitor.