Innova Captab Q1 FY27: Strong Growth, Stable Margins, and Early Signs of Jammu Turning the Corner

Innova Captab started FY27 with a strong quarter. Revenue from operations rose 34% year on year to 470.9 crore in Q1 FY27. EBITDA increased 33% to 75.1 crore, with EBITDA margin broadly stable at 16.0%. Profit after tax grew faster than operating profit, up 42% to 44.1 crore, lifting PAT margin to 9.4%.

Management attributed the performance to steady order flows, a broader product portfolio, and deeper engagement across both business areas. The company operates a diversified model with CDMO Services and Products as the larger contributor, alongside a growing Branded Generics business.

Segment mix: CDMO remains the core, branded generics accelerates

In Q1 FY27, CDMO Services and Products delivered revenue of 328.7 crore, up 32% year on year. Branded Generics revenue rose 39% to 142.2 crore. In mix terms, CDMO contributed about 70% of quarterly revenue, with branded generics at about 30%.

Management also highlighted progress on international expansion. The CFO stated exports were 32% of revenue during the quarter. On a consolidated basis, management indicated domestic is around 70% and exports around 30%, but did not provide further split within branded generics.

Jammu facility: ramp-up continues, first positive EBITDA reported

A key watch item for investors has been the Kathua, Jammu greenfield expansion, which was commercialized in January 2025. The investor presentation describes the plant as a multipurpose facility with four independent blocks (Cephalosporin, Penem, Penicillin, and General) and indicates a gradual utilisation ramp over the coming years.

In the Q1 FY27 call, management quantified progress. The CFO stated Jammu revenue was around 107 crore in the quarter, compared with around 90 crore in the prior quarter. Based on Q1 performance, management indicated annualised capacity utilisation of about 25% to 30%. Importantly, management said Jammu posted a positive EBITDA of about 1 crore to 1.5 crore in Q1 FY27.

Management also discussed the plant’s longer-term scale potential. The CFO said the optimum revenue anticipated from the Jammu plant is about 1,400 crore at 65% to 70% utilisation, and that incentives have already been factored into revenue and profitability expectations. When asked about returns, management said they expect asset turns north of 3x at an optimum level.

Guidance and operating levers: volume-led growth and disciplined capex

Management reiterated its broader growth stance for FY27. The Managing Director said the quarter supports confidence in guidance of 20% revenue growth and profitability outpacing revenue for FY27. In response to questions, the CFO clarified that the company’s forward-looking growth statements are framed on volume growth, and the company continues to target 20% plus volume growth.

On margins, management kept commentary conservative. Gross margin movement was described as largely mix-driven, with a 1% to 1.5% change year on year, and management indicated full-year gross margin should remain around current levels plus or minus 2%. For EBITDA, management maintained a blended margin band of 15% to 16% plus or minus 2%.

Working capital commentary also remained measured. Management indicated the group’s expected cash conversion cycle is about 90 days plus or minus 10 days, and noted that initial working capital for Jammu ramp-up had already been built in prior periods.

On capital allocation, the company offered specific ranges for routine capex. Management guided maintenance capex at 20 crore to 25 crore, and growth capex for debottlenecking or capability augmentation at 20 crore to 30 crore. Management also referenced a Baddi plot acquired earlier and said planning is ongoing, with a more concrete plan to be shared when finalized.

Takeaways

Q1 FY27 reinforces Innova Captab’s positioning as a diversified formulations player with two growth engines. The quarter delivered strong year-on-year expansion in revenue and profit, while keeping operating margins stable. The Jammu facility remains central to the medium-term operating leverage story, and the company’s disclosure of Jammu revenue and initial positive EBITDA provides a clearer marker on the ramp-up path.

For FY27, the key variables to track remain the pace of volume-led growth, the consistency of blended margins within the stated bands, and continued progress in Jammu utilisation as customer, product, and geography approvals expand.