NSE: SMSPHARMA · BSE: 532815
SMS PHARMACEUTICALS LTD.
Manufactures active pharmaceutical ingredients (APIs) — the bulk drug substances used by generic drug makers — across therapeutic areas including anti-inflammatory (ibuprofen is a major product), anti-retroviral (ARV), anti-erectile dysfunction, and anti-diabetic (the last is being wound down). Backward integration into ibuprofen raw materials, built over three years, is the main margin lever; FY26 EBITDA margin reached 20% on revenue of INR886.87 crore with materials at 58.2% of revenue. A brownfield expansion is under way, intended to add new capacity by March 2027 and bring new high-margin APIs on stream from FY28. The company files DMFs and CEPs to access regulated export markets and is shifting its mix toward higher-value APIs over time. A new peptides subsidiary (SMS Peptides) and a CDMO initiative are medium-term options, not yet material to revenue. Customer base is concentrated: the single largest customer accounts for 28% of FY26 revenue. AR · MarketPing reader · 2026-08-02
Revenue streams, as the annual report describes them. Anti-inflammatory APIs, Anti-retroviral (ARV) APIs, Anti-erectile dysfunction APIs, Anti-diabetic APIs, Peptides and CDMO. Asset-heavy API manufacturer with multi-therapy exposure, backward integration into key starting materials, and regulated-market filings
Exhibit 1: Financial summary, FY22–FY26 (all audited; no estimate years)
| ₹ crore · consolidated | FY22 | FY23 | FY24 | FY25 | FY26 |
|---|---|---|---|---|---|
| Revenue | 520 | 522 | 709 | 783 | 887 |
| EBITDA (ex other income) | 114 | 55 | 117 | 139 | 171 |
| margin % | 22.0 | 10.4 | 16.4 | 17.8 | 19.3 |
| Owners' profit | 62 | 0 | 0 | 69 | 102 |
| EPS, as reported (₹) | 7.35 | (0.83) | 5.89 | 8.16 | 11.15 |
| ROE % · ROCE % | 13.2 · 13.2 | (1.5) · 4.4 | 9.3 · 12.8 | 10.8 · 13.4 | 13.0 · 13.8 |
| Debt / equity (x) | 0.55 | 0.55 | 0.52 | 0.49 | 0.46 |
| Cash from operations | 40 | 22 | 50 | 82 | 59 |
| Capex | (27) | (30) | (52) | (123) | (131) |
Exhibit 2: Quarterly performance, last 8 quarters
| ₹ crore | Q2 FY25 | Q3 FY25 | Q4 FY25 | Q1 FY26 | Q2 FY26 | Q3 FY26 | Q4 FY26 | Q1 FY27 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 197 | 173 | 248 | 196 | 242 | 210 | 238 | 207 |
| Profit before tax | 20 | 22 | 29 | 24 | 34 | 31 | 27 | 27 |
| Net profit | 14 | 18 | 20 | 20 | 25 | 23 | 33 | 21 |
| EPS (₹) | 1.69 | 2.15 | 2.40 | 2.31 | 2.84 | 2.59 | 3.58 | 2.23 |
Exhibit 3: Peers — basic industry group, by market cap
| Company | M.cap ₹ cr | P/E | P/B | EV/EBITDA | ROE % | ROCE % | Rev CAGR 5y % | EBITDA m. % |
|---|---|---|---|---|---|---|---|---|
| SUN PHARMACEUTICAL IND L | 4,49,869 | 37.2 | 5.36 | 24.1 | 13.7 | 17.5 | 11.8 | 32.3 |
| DIVI S LABORATORIES LTD | 2,49,683 | 85.5 | 14.90 | 64.4 | 15.3 | 18.8 | 8.7 | 42.8 |
| TORRENT PHARMACEUTICALS L | 1,68,282 | 79.4 | 9.57 | 41.6 | 12.2 | 8.0 | 11.8 | 33.1 |
| ZYDUS LIFESCIENCES LTD | 1,16,367 | 26.0 | 3.93 | 15.0 | 17.3 | 18.0 | 12.4 | 25.2 |
| CIPLA LTD | 1,11,403 | 33.0 | 3.23 | 17.1 | 11.2 | 14.7 | 8.0 | 19.7 |
| LAURUS LABS LIMITED | 1,08,995 | 99.6 | 20.07 | 60.7 | 16.4 | 17.2 | 7.2 | 32.0 |
| MANKIND PHARMA LIMITED | 1,00,400 | 49.1 | 6.06 | 27.6 | 11.7 | 10.8 | — | 27.3 |
| DR. REDDY S LABORATORIES | 1,00,367 | 31.1 | 2.63 | 13.5 | 10.9 | 13.0 | 12.1 | 15.0 |
Exhibit 4: Where the company sits in its group
| Metric | Company | Group median | Rank | Better than |
|---|---|---|---|---|
| P/E (TTM) | 41.6 | 29.6 | 115 of 170 | 33% |
| P/B | 5.6 | 3.3 | 122 of 164 | 26% |
| ROCE | 11.6 | 10.8 | 84 of 183 | 54% |
| ROE | 13.0 | 10.4 | 59 of 171 | 66% |
| Debt / Equity | 0.5 | 0.1 | 138 of 171 | 19% |
| EBITDA margin | 20.6 | 17.5 | 71 of 165 | 57% |
| Revenue growth | 5.6 | 16.3 | 110 of 161 | 32% |
| Profit growth | 2.0 | 30.9 | 106 of 158 | 33% |
| Market cap | 4378 | 770 | 63 of 184 | 66% |
Exhibit 5: Filings of the last 90 days, with the measured price reaction
| Date · filing | Category | Importance | 1-day % | 5-day % |
|---|---|---|---|---|
| 10 Sept 2026 · Intimation of Analyst/Investor Meeting on 15 September 2026 | board shareholder meetings | low | — | — |
| 5 Sept 2026 · Newspaper publication copy submitted to exchange | compliance | minimal | — | — |
| 4 Sept 2026 · Annual Report Letter Dispatched to Shareholders; 38th AGM on 29 Sep 2026 | compliance | minimal | — | — |
| 4 Sept 2026 · SMS Pharma files FY26 Business Responsibility and Sustainability Report | compliance | minimal | — | — |
| 4 Sept 2026 · 38th AGM on 29 Sep 2026; dividend record date 22 Sep | board shareholder meetings | low | — | — |
| 4 Sept 2026 · FY2025-26 annual report and 38th AGM notice | board shareholder meetings | medium | — | — |
| 2 Sept 2026 · CARE reaffirms SMS Pharma ratings; outlook cut from Positive to Stable | credit debt | medium | — | — |
| 29 Aug 2026 · Newspaper publication copy filed with exchange | compliance | minimal | — | — |
| 27 Aug 2026 · Dividend record date revised to 22nd September 2026 | corporate actions | medium | — | — |
| 27 Aug 2026 · 38th AGM date shifted to 29 September 2026 | board shareholder meetings | low | — | — |
How to read this document
| Where a broker report shows | This document shows | Why |
|---|---|---|
| A rating (BUY / ADD / REDUCE / SELL) | A state: the latest filed quarter and the measured reactions | an event is a fact; a rating is an opinion that requires SEBI RA registration |
| A target price and upside | The current price and the multiples against the group | a target is a forecast; a multiple is a measurement |
| Estimate years marked E | More audited years; no estimates | MarketPing publishes no forecasts — your own model lives on the Models page |
Sources, method and disclosures
This document is a statistical summary of publicly filed information and market data, prepared by software from primary sources: SEBI results XBRL filed with BSE and NSE, LODR disclosures, shareholding patterns, exchange price data. It contains no research recommendation, no price target and no opinion on the merits of any security, and is not a research report within the meaning of the SEBI (Research Analysts) Regulations, 2014, Regulation 2(1)(w)(vii). Financial statements are as filed (consolidated where the company files consolidated results). Ratios are computed over filed lines. Where a figure is unavailable the table shows a dash rather than an estimate. The business brief is written by MarketPing's reader from the annual report and checked against it; no figure in a table was generated by a model. Nothing here constitutes investment advice, an offer or a solicitation; readers should consult a SEBI-registered adviser before acting. MarketPing is not a SEBI-registered intermediary.