SMS Pharmaceuticals Ltd. reported a steady financial performance for the quarter ended June 30, 2026, driven by broad-based growth across its high-value Active Pharmaceutical Ingredients (APIs) portfolio. The company posted a 6% year-on-year increase in revenue from operations to ₹207 crore, while net profit (PAT) rose 8% to ₹20.2 crore.
The pharmaceutical company maintained an EBITDA margin of around 20%, supported by improved product mix and backward integration, despite higher employee costs and elevated freight expenses during the quarter.
Q1 FY27 Highlights
- Revenue from operations increased 6% YoY to ₹207 crore.
- Gross profit rose 12% YoY to ₹74.9 crore, with gross margin improving to 36%.
- EBITDA stood at ₹40.95 crore, while EBITDA margin remained at 20%.
- Profit after tax (PAT) increased 8% YoY to ₹20.2 crore.
- Completed 4 DMF/CEP filings, keeping the company on track to achieve its FY27 target of 10 filings.
- R&D team strength expanded to 200 professionals.
- Board approved a loan of up to ₹50 crore for wholly owned subsidiary SMS Peptides Private Limited to strengthen its peptide CDMO business.
- The ongoing ₹280 crore capex programme remains on schedule, with ₹120 crore already completed.
ARV Portfolio Drives Growth
The company’s revenue growth was primarily led by its Anti Retro Viral (ARV) portfolio, which recorded a 69% year-on-year increase, supported by continued market share gains.
Other therapeutic segments also delivered healthy growth:
- Anti-erectile dysfunction: 262%
- Anti-anginal: 129%
- Others: 109%
- Anti-epileptic: 51%
- Anti-migraine: 44%
- Anti-inflammatory: 4%
Meanwhile, the anti-diabetic segment declined due to changes in product mix.
Capex and Product Pipeline
SMS Pharmaceuticals said its ₹280 crore expansion programme is progressing as planned and is expected to be completed during FY27. The expansion will support commercialisation of several niche and high-value API molecules.
The company also stated that 6–8 niche molecules developed by its R&D team are expected to enter commercial production towards the end of the current financial year.
Management Commentary
Executive Director P. Vamsi Krishna said the company has started FY27 on a healthy note with broad-based growth across its high-value API portfolio while maintaining EBITDA margins at around 20%.
He added that temporary headwinds, including annual employee increments and higher freight costs due to geopolitical developments in West Asia, affected margins during the quarter but are expected to ease over the coming months.
The company remains confident of achieving its FY27 growth guidance, supported by capacity expansion, new product launches, increasing contribution from high-value APIs and continued growth in its ARV and Ibuprofen portfolios.
Outlook
Looking ahead, SMS Pharmaceuticals expects stronger growth in the remaining quarters of FY27, driven by:
- Commercialisation of new niche API molecules.
- Expansion of the ARV portfolio.
- Improved contribution from high-value APIs.
- Completion of the ongoing ₹280 crore capacity expansion programme.
- Continued focus on peptides through its dedicated CDMO platform.
Source: NSE Filing
