Shilpa Medicare Q1 FY27: Highest Ever Revenue & EBITDA, PAT Surges 115%
Shilpa Medicare reported record Q1 FY27 revenue of ₹469 cr (up 43% YoY) and EBITDA of ₹139 cr (up 42% YoY). PAT surged 115% YoY to ₹101 cr. The company's credit rating was upgraded to AA-. Key growth drivers include API, Formulation, and Biologics divisions. Management expects continued robust growth and improved margins.
The announcement details record financial performance, strategic transformation, and positive future outlook across all business segments, indicating a significant positive impact on the company's valuation and investor confidence.
The company reported its highest-ever quarterly revenue and EBITDA, significant year-on-year growth in PAT, and a credit rating upgrade. Management expressed confidence in future growth driven by strategic investments and a strong pipeline.
Shilpa Medicare Limited announced its Q1 FY27 financial results, reporting its highest-ever quarterly revenue and EBITDA for the fourth consecutive quarter. The company's quarterly revenue stood at ₹469 crores, a 43% year-on-year increase, with a healthy gross margin of 71%. EBITDA for the quarter was ₹139 crores, up 42%, maintaining a 30% EBITDA margin.
Operating Profit Before Tax (PBT) was ₹92 crores, compared to ₹50 crores in the same quarter last year. Reported PBT grew by 98% year-on-year to ₹98 crores. The company reported a negative tax rate due to the reversal of deferred tax liability as it plans to switch to a new tax regime offering lower incidence. Reported Profit After Tax (PAT) for the quarter was ₹101 crores, an impressive 115% year-on-year growth. The company expects the tax rate to normalize around 25% in the coming quarters.
Capital expenditure for the quarter was ₹114 crores, primarily funded through internal accruals and deployed across various businesses. The company's ROCE improved to 12.5% from 8.8% in FY25, and adjusted for biologics and NBE businesses, it stood at 18.3%. Shilpa Medicare also announced its credit rating upgrade from A+ to AA-.
The API division reported revenue of ₹260 crores, a 15% year-on-year growth, driven by improved offtake of key products and strong captive demand. The Formulation division saw a robust revenue growth of over 100% year-on-year, reaching ₹198 crores, largely driven by the complex FDA portfolio in the U.S. The Biologics segment reported revenue of ₹52 crores, a 42% year-on-year growth, attributed to licensing, partnership, and CDMO businesses.
Management highlighted the company's transformation over the past three years, moving from a debt-laden API business to a diversified entity focused on first-in-class drugs, global partnerships, and complex molecule manufacturing. Significant investments in biologics, CDMO, novel drug delivery, and NBE are expected to drive future growth and margins, with reinvestments largely behind the company and harvesting ahead. The company is investing in peptide manufacturing capacity in India, with full commissioning expected by the end of FY27. Three NCE programs in the CDMO segment are slated for commercialization in FY28. The company aims to complete 15 new oncology product validations on the generic side in FY27.
In the Formulation division, the NCE molecule Nor-Ursodeoxycholic acid is performing as expected, with global Phase II clinical studies planned for FY27. Filings for Abraxane, Enzalutamide, and Abiraterone formulations are on track for FY28 launches. The Rotigotine transdermal patch has received European approval and is filed in the U.S. for an FY28 launch.
The Biologics division's second biosimilar product, Aflibercept, has completed clinical studies and is on track for an FY27 launch in India. Nivolumab is expected to launch in India in FY28. The company also has more than 5 biosimilars in its pipeline and is actively engaged in large molecule CDMO business with multiple NCE programs, some of which are entering human clinical studies in FY27. The first ADC biosimilar is also on track for human studies in FY27.
The management expressed confidence in continued growth driven by an improved business mix and robust pipeline, while acknowledging potential challenges from regulatory pathways. The company is not foreseeing significant new capex for the next three years, focusing on monetizing existing investments. R&D investments will continue across divisions.
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