Shilpa API quarterly sales hit Rs 298 crore, led by core portfolio

Shilpa recorded its highest-ever API division revenue of Rs 298 crore including captive sales in 2QFY27, about 16% above 2QFY26, as its core active pharmaceutical ingredient portfolio and Specialty CDMO business contributed to growth. Shilpa also disclosed more than 20 API products under development and an oncology expansion due by end-FY27.

How did Shilpa API revenue perform in 2QFY27?

Shilpa’s API division generated Rs 298 crore including captive sales in 2QFY27, compared with Rs 256 crore in 2QFY26 and Rs 260 crore in 1QFY27. The company identified Rs 298 crore as its highest-ever quarterly API division revenue. For 1HFY27, revenue including captive sales reached Rs 558 crore, up from Rs 481 crore in 1HFY26.

The disclosed revenue split comprised Rs 264 crore from API and Rs 34 crore from Specialty CDMO in 2QFY27. CDMO means contract development and manufacturing organisation, and Shilpa’s Specialty CDMO figure includes API CDMO, peptide and polymer activities. In 1HFY27, API revenue was Rs 496 crore against Rs 439 crore a year earlier, while Specialty CDMO revenue rose to Rs 62 crore from Rs 42 crore.

API revenue increased by Rs 40 crore quarter on quarter, from Rs 224 crore in 1QFY27 to Rs 264 crore in 2QFY27. Specialty CDMO revenue moved in the other direction over that interval, declining by Rs 2 crore from Rs 36 crore to Rs 34 crore, but remained Rs 9 crore above the Rs 25 crore reported in 2QFY26. Shilpa said Specialty CDMO grew about 36% year on year, driven by new client acquisitions in developed markets.

What drove Shilpa’s non-captive API growth?

Shilpa said its non-captive portfolio grew about 24% year on year in 2QFY27 and about 20% in 1HFY27, supported by the core API portfolio and Specialty CDMO. The presentation does not disclose a separate rupee figure for non-captive sales, so its precise contribution to the Rs 298 crore 2QFY27 division total cannot be calculated from the revenue table.

Captive business also grew consistently, according to Shilpa, with internal demand from its FDF vertical providing support. FDF means finished dosage forms. Across the division, revenue including captive sales increased by Rs 42 crore from 2QFY26 to 2QFY27, while the reported API line increased by Rs 33 crore, from Rs 231 crore to Rs 264 crore.

Specialty CDMO contributed Rs 34 crore in 2QFY27 and Rs 62 crore in 1HFY27, compared with Rs 25 crore and Rs 42 crore in the respective prior-year periods. Shilpa attributes the quarterly year-on-year increase to developed-market client additions. The disclosure gives neither contract values nor customer-level revenue concentration, limiting assessment of how sales are distributed across the three Specialty CDMO activities.

What does Shilpa’s oncology API pipeline include?

Shilpa has more than 20 products under development across its oncology and non-oncology API portfolio, with validation of all products progressing on track. It has also added more than 15 new APIs to its oncology pipeline. The new oncology products target higher-value molecules facing patent expiries through 2032, although the presentation does not identify individual launch dates.

A new oncology block is on track for completion by end-FY27 and is intended to enable new product launches. Shilpa has not disclosed the project’s capital cost, installed capacity or output timeline beyond the end-FY27 completion target. The facility is therefore a stated operational milestone alongside the Rs 298 crore API division revenue reported for 2QFY27, rather than an already contributing revenue source.

Shilpa reported 292 Drug Master File, or DMF, filings with major regulatory authorities, including 65 in the European Union and European Economic Area and 55 with the US Food and Drug Administration. It also reported 38 filings in Gulf Cooperation Council and rest-of-world markets. Nine new DMF filings were added across markets in 1HFY27, which Shilpa linked to new product introductions and broader geographical coverage.

How is Shilpa expanding Specialty CDMO and peptide operations?

Shilpa reported six late-stage Specialty CDMO programmes in Phase III or registration, including four programmes under registration with global regulators. The company expects approvals for those four programmes over the next 18 to 24 months. It also qualified a new customer for a Phase III programme and completed Phase III supplies for a Japanese client.

Commercial supplies to a European customer are scheduled to begin in 2HFY27, while supplies to a newly added Japanese customer are expected to commence by end-FY27. In polymers, Shilpa onboarded a US customer, received initial orders and expects execution by 2HFY27. These are future commercial milestones rather than recorded components of the Rs 62 crore Specialty CDMO revenue reported in 1HFY27.

In peptides, Shilpa said its order book provides revenue visibility for FY27 and that it is adding solid-phase synthesis capacity for glucagon-like peptide-1, high-potency active pharmaceutical ingredient and CDMO requirements. Shilpa describes the planned capacity as one of India’s largest. Its semaglutide DMF is ready for filing, and the company said it has both synthetic and semi-synthetic routes, but it did not disclose capacity volumes or expected revenue from semaglutide.

Conclusion

Shilpa’s Rs 298 crore API division revenue in 2QFY27 reflects growth in the core API portfolio, captive demand and Specialty CDMO activity. The division’s Rs 558 crore revenue in 1HFY27, against Rs 481 crore in 1HFY26, shows that the reported growth extended beyond one quarter, while Specialty CDMO increased from Rs 42 crore to Rs 62 crore over the same half-year comparison.

The next disclosed events are European commercial supplies and polymer order execution in 2HFY27, Japanese customer supplies by end-FY27, and completion of the oncology block by end-FY27. Shilpa also expects decisions on four registration-stage CDMO programmes within 18 to 24 months, while validation continues for more than 20 API products under development.