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 | 4,46,270 | 40.7 | 4.98 | 24.9 | 5.5 | 8.0 | 11.8 | 29.3 |
| DIVI S LABORATORIES LTD | 2,73,493 | 93.6 | 16.32 | 79.4 | 15.3 | 18.8 | 8.7 | 40.7 |
| TORRENT PHARMACEUTICALS L | 1,80,500 | 80.2 | 9.82 | 42.6 | 6.0 | 4.0 | 11.8 | 33.5 |
| LAURUS LABS LIMITED | 1,26,430 | 94.3 | 20.45 | 72.4 | 12.9 | 14.2 | 7.2 | 34.0 |
| ZYDUS LIFESCIENCES LTD | 1,19,550 | 28.8 | 3.94 | 15.4 | 6.4 | 6.8 | 12.4 | 24.0 |
| DR. REDDY S LABORATORIES | 1,14,646 | 40.9 | 2.93 | 18.5 | 3.4 | 4.2 | 12.1 | 19.9 |
| CIPLA LTD | 1,13,988 | 39.3 | 3.21 | 19.3 | 4.6 | 6.2 | 8.0 | 18.7 |
| MANKIND PHARMA LIMITED | 1,04,902 | 46.8 | 5.88 | 30.6 | 7.2 | 7.3 | — | 27.0 |
Exhibit 4: Where the company sits in its group
| Metric | Company | Group median | Rank | Better than |
|---|---|---|---|---|
| P/E (TTM) | 44.4 | 29.3 | 114 of 160 | 29% |
| P/B | 6.0 | 3.1 | 134 of 163 | 18% |
| ROCE | 11.6 | 8.0 | 56 of 177 | 69% |
| ROE | 13.0 | 6.8 | 31 of 165 | 82% |
| Debt / Equity | 0.5 | 0.1 | 135 of 166 | 19% |
| EBITDA margin | 19.8 | 14.6 | 62 of 178 | 66% |
| Revenue growth | 5.6 | 17.1 | 108 of 163 | 34% |
| Profit growth | 2.0 | 21.8 | 96 of 157 | 39% |
| Market cap | 4678 | 814 | 58 of 181 | 68% |
Exhibit 5: Filings of the last 90 days, with the measured price reaction
| Date · filing | Category | Importance | Next day % | 5-day % |
|---|---|---|---|---|
| 5 Nov 2026 · SMS Pharmaceuticals posts investor conference call audio | investor communications | low | — | — |
| 5 Nov 2026 · Newspaper publication of September 2026 financial results | compliance | minimal | — | — |
| 4 Nov 2026 · Q2 FY27 profit rises 57% as revenue grows 30% | compliance | low | — | — |
| 4 Nov 2026 · Q2 FY27 revenue rises 30%, margins improve and FY27 outlook strengthens | investor communications | medium | — | — |
| 4 Nov 2026 · Company Secretary resigns; Q2 profit rises to Rs 39.9 crore | management changes | high | — | — |
| 4 Nov 2026 · Consolidated Sep 2026 quarter revenue up 30%, profit after tax up 57% vs Sep 2025 | results | high | — | — |
| 4 Nov 2026 · Company Secretary resigns; replacement appointed from November 5 | management changes | medium | — | — |
| 4 Nov 2026 · Consolidated Q2 FY27 revenue up 30.4 percent, profit after tax up 57.4 percent year on year | results | high | — | — |
| 2 Nov 2026 · Investor conference call scheduled for Q2 and H1 FY27 results | board shareholder meetings | low | — | — |
| 31 Oct 2026 · Income tax appeal dismissed; company reviewing further action | regulatory legal | high | — | — |
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 |
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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.