SMS Pharma Q3FY26: Revenue Up 21%, PAT Up 29% on Volume Growth
SMS Pharmaceuticals reported Q3FY26 revenue of ₹210.45 crore, up 21% YoY. PAT grew 29% YoY to ₹23.47 crore. For 9MFY26, revenue was ₹648.92 crore (up 21% YoY) and PAT was ₹69.27 crore (up 42% YoY). The company achieved its 10-filing target ahead of schedule and its ₹280 crore capex program is on track for FY27 completion. FY26 outlook remains ~20% revenue growth with EBITDA margins above 20%.
The announcement details significant revenue and profit growth, achievement of R&D milestones, and progress on a substantial capex program, all of which are material to investors and indicate strong future prospects.
The company reported strong year-on-year growth in revenue, EBITDA, and PAT, exceeding its filing targets ahead of schedule and maintaining a positive outlook for FY26.
SMS Pharmaceuticals Limited (SMS Pharma) has announced its unaudited financial results for the third quarter and nine months ended December 31, 2025. The company reported a strong performance driven by volume growth and operating leverage.
For the third quarter of FY26, revenue from operations stood at ₹210.45 crore, marking a 21% year-on-year increase. This growth was attributed to robust demand, volume ramp-up in key products, and market share gains across major Active Pharmaceutical Ingredients (APIs). The EBITDA for the quarter grew by 31% YoY to ₹43.65 crore, with EBITDA margins improving to 20.74%, up 158 basis points YoY. Profit After Tax (PAT) saw a significant jump of 29% YoY to ₹23.47 crore, with PAT margins at 11.15%.
For the nine months ended December 31, 2025 (9MFY26), revenue from operations reached ₹648.92 crore, a 21% increase compared to the same period last year. The nine-month PAT grew by a substantial 42% YoY to ₹69.27 crore, with PAT margins improving to 10.67%. The company highlighted that its backward integration initiatives helped sustain margin resilience, with gross margins improving to 35.59% in Q3FY26 due to the full-quarter impact of the backward integration project commissioned in Q1FY26.
On the R&D front, SMS Pharma achieved its full-year target of 10 Drug Master File (DMF) / Certificate of Suitability to the monographs of the European Pharmacopoeia (CEP) and dossier filings ahead of schedule. The company is targeting approximately 20 submissions over the next two years. The ₹280 crore capacity expansion program is progressing as planned and is scheduled for completion by FY27, aimed at enhancing capacity for existing APIs, building capacity for new products, expanding R&D capabilities, and enabling future growth initiatives.
Looking ahead, SMS Pharma remains on track to deliver its FY26 outlook, projecting around 20% revenue growth with EBITDA margins above 20%. This growth is expected to be driven by backward integration, strong R&D capabilities, advanced manufacturing infrastructure, a diversified product portfolio, and price stabilization in key APIs. Mr. P. Vamsi Krishna, Executive Director, commented on the performance, emphasizing strong demand, market share gains, and the positive impact of backward integration and capacity expansion on future growth and margin expansion.
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