Shilpa Medicare FY26: Strong finish, widening platform for FY27

Shilpa Medicare ended FY26 with a step-up in both scale and profitability. Consolidated revenue rose to INR 1,549 crore, up 18 percent year on year. EBITDA grew faster, at 30 percent, reaching INR 445 crore. EBITDA margin improved to 29 percent from 26 percent in FY25. The company also reported a sharp rise in adjusted PAT to INR 232 crore in FY26, versus INR 99 crore in FY25.

The March quarter extended this momentum. 4QFY26 revenue was INR 439 crore, up 30 percent year on year and 7 percent sequentially. EBITDA was INR 121 crore, up 40 percent year on year, while adjusted PAT was INR 87 crore. Management attributed the performance to broad-based growth across verticals and operating leverage as utilization improved.

FY26 in numbers: growth with operating leverage

The FY26 profile shows that Shilpa is increasingly being run as a platform, not as a single-segment pharma company. The business mix in FY26 was led by APIs at INR 769 crore, formulations at INR 618 crore, biologics at INR 150 crore, and others at INR 12 crore.

The company also highlighted improving capital efficiency. Adjusted ROCE reached 17.4 percent in FY26, excluding investments in biologics and NBE businesses. Net debt to EBITDA improved to 1.4x, while finance costs declined to INR 59 crore from INR 76 crore in FY25. Net capex was INR 361 crore in FY26.

Note: The presentation and call mention exceptional items, including a stake sale gain and a provision towards Sartorius exposure. Reported numbers also include restatement of investment value and profit share from an associate in 4QFY26.

Segment story: APIs steady, formulations accelerating, biologics building

APIs remain the backbone, with captive demand supporting utilization

API revenue in FY26 was INR 769 crore. Within the API portfolio, the FY26 split (including captive) was oncology INR 455 crore, non-oncology INR 390 crore, specialty CDMO INR 110 crore, and others INR 30 crore. Management said growth in FY26 came from broad-based performance across onco and non-onco base products, improved utilization from expanded capacities, and steady captive demand from the finished dosage business.

A key strategic point repeated in the concall was that oncology APIs are increasingly built around non-infringing routes and used for forward integration into formulations to maximize realization. Management indicated API growth in FY27 is expected to be steady.

Formulations: Europe scales, domestic boosted by NorUDCA, US remains selective

Formulations revenue rose to INR 618 crore in FY26. The regional mix was Europe INR 223 crore, US INR 80 crore, RoW INR 123 crore, domestic INR 72 crore, and licensing and services INR 120 crore.

Management emphasized that growth excluding licensing income was materially stronger, and pointed to Europe as a key scaling geography. The company highlighted that European formulations crossed INR 200 crore in FY26 and continued to grow strongly in 4QFY26.

In the US, management addressed investor questions on muted growth despite partner market share gains in certain products. The company said it discontinued azacitidine sales due to market dynamics and is now prioritizing super-specialty and differentiated products. Shilpa also indicated that a large portion of US-sold products are manufactured through third-party CMOs, with the company working with the regulator on next steps related to the Jadcherla site inspection process.

Biologics: FY27 triggers, but meaningful developed-market revenue is later

Biologics contributed INR 150 crore in FY26. The presentation and call focused more on near-term pipeline catalysts than on segment-level revenue breakdown.

Aflibercept is positioned as the key FY27 event. Phase 3 is nearing completion in 1HFY27, and the company expects India commercialization in FY27. For larger developed markets, management indicated timelines are longer. In the concall, management said commercial revenues from Europe and RoW for biologics could start around FY29 for certain assets, and that Aflibercept is not currently planned for Europe unless a partner funds the costly clinical program.

FY27 execution map: NorUDCA, patches, CDMO milestones, and albumin trials

Shilpa’s FY27 outlook is built on multiple parallel tracks, with a mix of launches, filings, and clinical milestones.

NorUDCA, the company’s first-in-class NAFLD therapy in India, was launched in 3QFY26 under Shilpa’s own brand NodUca and through three marketing partners. Management said demand has grown quarter on quarter since the November launch, but also noted that therapy duration is roughly six months, and clearer persistence data from clinicians may emerge only after more cycles.

On the complex delivery side, Rotigotine transdermal patch has received final EMA marketing authorisation, with a 1HFY27 launch planned in Europe. The US filing was completed in 4QFY26 and management stated approval expectation in FY27, with a fuller ramp-up into FY28.

Another key product is Ondansetron extended-release injection, branded as OERIS in the presentation. The company disclosed positive Phase 3 results in India and expects an FY27 launch domestically, while also progressing global development.

CDMO remains a potential swing factor, but management stayed cautious on near-term contribution from the Oxylanthanum Carbonate program despite the PDUFA date of June 29, 2026. The presentation states Shilpa has an exclusive CDMO contract for API and formulation and that a dedicated commercial block was commissioned, but management said they are not projecting meaningful contribution in FY27.

Recombinant human albumin is a longer build but has near-term clinical milestones. Shilpa has an exclusive Europe commercialization partnership with Orion Corporation. The company expects Phase 3 trials in India and Europe to start in 1HFY27, with IMPD submission to EMA also targeted in 1HFY27. Commercialization is discussed as FY28 to FY29, with early FY29 mentioned for India and Europe in the presentation.

Takeaways

FY26 marks a clear profitability inflection for Shilpa Medicare. Revenue growth is broad-based, margins have expanded, and leverage metrics have improved alongside continued capex. The company’s narrative is now built around a multi-vertical platform across APIs, specialty formulations, biologics, and integrated CDMO.

The next phase depends on execution and timelines. FY27 contains tangible milestones such as Rotigotine EU launch, Ondansetron ER injection India launch plans, and Aflibercept commercialization expectations. At the same time, management was careful not to over-promise on uncertain catalysts like OLC contribution and on longer-dated global revenue streams in biologics and NorUDCA international expansion.

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