Shelter Pharma H1 revenue rises 35.6% as margins narrow

Shelter Pharma Limited reported revenue from operations of Rs 45.13 crore for the half year ended 30 September 2026, up 35.6% year on year, while statutory profit after tax rose 15.7% to Rs 5.21 crore as costs grew faster than sales and management reported lower year-on-year gross and EBITDA margins.

How did Shelter Pharma perform in H1 FY27?

Shelter Pharma’s revenue from operations rose to Rs 45.13 crore in H1 FY27 from Rs 33.29 crore in the half year ended 30 September 2025, an increase of 35.6%. Total income, including Rs 1.59 lakh of other income, was Rs 45.15 crore, compared with Rs 33.30 crore a year earlier. The board approved the unaudited standalone results on 7 November 2026, and the statutory auditor issued a limited review report.

Profit after tax was Rs 5.21 crore, compared with Rs 4.50 crore in H1 FY26, representing growth of 15.7% and trailing revenue growth. Profit before tax increased to Rs 6.96 crore from Rs 6.01 crore, while total tax expense rose to Rs 1.75 crore from Rs 1.51 crore. The management discussion reported profit after tax of Rs 5.19 crore and 15.4% growth, whereas the statutory profit-and-loss statement reported Rs 5.21 crore.

The H1 FY27 revenue figure also exceeded the Rs 39.84 crore recorded for the period ended 31 March 2026, although that comparison is not year on year. Management said the Rs 45.13 crore of first-half revenue represented 61.7% of FY26 full-year revenue of Rs 73.13 crore and was the company’s largest six-month period to date.

Why did Shelter Pharma’s margins decline despite higher revenue?

Shelter Pharma’s margins narrowed because expenses rose 40.0%, faster than the 35.6% increase in revenue. Management reported a gross margin of 22.6%, down 237 basis points year on year and 57 basis points from the preceding half, attributing most of the pressure to higher logistics costs as fuel and freight rose during the West Asia war. One basis point equals one-hundredth of a percentage point.

Cost of materials consumed increased 40.5% to Rs 35.00 crore from Rs 24.90 crore, exceeding the revenue growth rate. Employee benefit expense rose 59.7% to Rs 1.36 crore from Rs 85.40 lakh. Management said it hired in April a zonal sales manager for veterinary operations, a regional sales manager for Uttarakhand and western Uttar Pradesh, three sales officers for Gujarat and Rajasthan, and an export executive.

Management reported earnings before interest, tax, depreciation and amortisation, or EBITDA, of Rs 7.38 crore, up 17.9% year on year. EBITDA margin was 16.4%, down 244 basis points year on year but up 13 basis points from the preceding half. Depreciation and amortisation rose to Rs 37.65 lakh from Rs 18.80 lakh after the Himmatnagar building was capitalised in FY26.

Which businesses and markets drove Shelter Pharma’s sales?

Shelter Pharma’s human-health and animal-health businesses each supplied close to half of H1 FY27 revenue. Management reported human-health revenue of Rs 22.26 crore and animal-health revenue of Rs 22.87 crore, compared with animal health’s 55% share of FY26 revenue. It attributed the near-even mix to faster growth in its human-health range.

Domestic sales were Rs 39.03 crore, representing 86.5% of H1 revenue, and animal health accounted for 57.9% of domestic sales. Exports reached Rs 6.11 crore, or 13.5% of revenue, with human health contributing 95% of export sales. The six-month export total compared with Rs 5.87 crore for the whole of FY26.

Shelter Pharma manufactures herbal and Ayurvedic medicines and nutritional products at Himmatnagar, Gujarat, and management says it has about 300 formulations. In May, Verka Dairies, also known as MILKFED Punjab, awarded a one-year rate contract for veterinary medicines and placed its first purchase order in July. Shelter Pharma also disclosed repeat orders from Taha Drugs & Chemicals of Sudan in April and May, plus veterinary feed-supplement orders from Al-Saqr Agro and Genet International in July.

What do cash flow and working capital show?

Shelter Pharma reported net cash used in operating activities of Rs 69.08 lakh in H1 FY27 because working-capital movements and tax payments exceeded cash generated from operations. Operating profit before working-capital changes was Rs 7.32 crore, but total working-capital changes absorbed Rs 6.27 crore and income tax paid was Rs 1.74 crore.

Inventory was the largest working-capital cash use, increasing by Rs 7.09 crore during the half. Inventories on the balance sheet rose to Rs 31.52 crore at 30 September 2026 from Rs 24.44 crore at 31 March 2026. Management said it carried raw and packing material into the second half, while short-term provisions increased by Rs 1.75 crore and trade receivables declined by Rs 20.66 lakh.

Trade receivables fell to Rs 11.60 crore from Rs 11.81 crore, while management reported receivable days of 47, down from 59 at 31 March 2026 and below its 60-day target set in June. Cash and cash equivalents increased to Rs 1.79 crore from Rs 1.08 crore, aided by financing cash inflow of Rs 1.94 crore, including Rs 1.30 crore of additional long-term borrowings and Rs 71.29 lakh of proceeds from share warrants.

What is Shelter Pharma’s capacity and expansion plan?

Shelter Pharma said its Himmatnagar plant can produce about Rs 100 crore of annual revenue at current prices on a single shift. Management estimated revenue for the 12 months to September 2026 at Rs 84.97 crore, or 85% of that capacity, and said the plant could reach full single-shift capacity by the end of FY27. It plans to add a second shift before a proposed second plant begins production.

Management said it was procuring land at Himmatnagar for a second plant expected to cost about Rs 12 crore to Rs 15 crore, mainly funded through internal accruals. The proposed site is designed for more than Rs 100 crore of annual revenue capacity at current prices. Management expects manufacturing and other approvals by December 2026, installation through calendar 2027 and production between mid-2028 and end-2028.

For FY27, management has guided for revenue growth of 35% to 40%, an EBITDA margin of 16% to 18% and a profit-after-tax margin of 11% to 13%. Its H1 reported management metrics were revenue growth of 35.6%, EBITDA margin of 16.4% and profit-after-tax margin of 11.5%. Management also targets FY30 revenue of Rs 200 crore, based on two shifts at Himmatnagar and output from the proposed second plant.

Conclusion

Shelter Pharma produced a 35.6% increase in H1 FY27 revenue to Rs 45.13 crore, supported by contributions from human health, animal health and exports. Statutory profit after tax increased more slowly, by 15.7% to Rs 5.21 crore, as total expenses rose 40.0%, gross margin declined 237 basis points and inventory growth contributed to a Rs 69.08 lakh operating cash outflow.

The next disclosed milestones are management’s FY27 guidance of 35% to 40% revenue growth and its expectation of approvals for the proposed second plant by December 2026. Management also plans installation during calendar 2027 and expects production from the facility between mid-2028 and end-2028, subject to approvals, construction and commissioning.