Transcripts of the Conference call held on 27th May, 2026
SMSPHARMA · price
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SMS Pharmaceuticals delivered 13% revenue growth to INR887 crores in FY26 with EBITDA margins expanding to 20% (up from prior year), supported by strong performance in anti-inflammatory and ARV segments. PAT grew 47% to INR102 crores, including INR14 crores from associate VKT Pharma. Management highlighted that backward integration investments made over 3 years are now paying off, enabling margin improvement despite supply chain disruptions. The company guided for 15% revenue growth in FY27 while targeting EBITDA margins of 22% (approaching their all-time high). Brownfield expansion of INR280 crores is on track with INR130 crores invested; capacity will increase from 500 to 800 metric tons per month by March 2027, with new high-margin API products expected to contribute from FY28. Peptides and CDMO initiatives remain medium-term opportunities with clearer roadmaps expected in 2 quarters. Export comprises 70% of revenue.
The company is well-positioned for the next growth phase with multiple drivers—new API launches, backward integration benefits, and capacity expansion—all expected to improve profitability from FY28 onwards. The margin guidance of 22% EBITDA in FY27 suggests continued focus on operational efficiency despite external uncertainties.