Sanjiv.Parant. — Q1 FY26 earnings call

Call held 12 Aug 2025

Management summary

Sanjivani Parenteral Limited delivered a steady Q1 FY26 performance amidst global macroeconomic headwinds and supply chain disruptions. The company reported modest revenue and EBITDA growth, maintaining margins through cost optimization. Key new ventures in Pune and Prague are progressing towards commercialization, with specific timelines provided for their operational and financial contributions. Management expressed confidence in a stronger performance for the rest of FY26, driven by new product introductions and easing logistics.

Highlights

  • Revenue grew 8.9% YoY to INR17.9 crores.

  • EBITDA increased 10.8% YoY to INR2.7 crores.

  • EBITDA margin stood at 15%, up from 14.7% in Q1 FY25.

  • Profit After Tax (PAT) was flat at INR1.7 crores due to higher depreciation and interest expenses.

  • Export-domestic revenue mix was 73.7% to 26.3%.

  • Product mix: Injectables 50.2%, Tablets 49.3%, Nutraceuticals 0.4%.

  • Pune SPL unit expected to start commercial production by early September 2025.

  • Prague JV income recognition anticipated in Q4 FY26.

Concerns

  • Geopolitical tensions and supply chain disruptions

Key financials

  1. Revenue ₹17.9 Cr +8.9%YoY
  2. EBITDA ₹2.7 Cr +10.8%YoY
  3. EBITDA Margin 15%
  4. PAT ₹1.7 Cr 0%YoY
  5. Other Expenses ₹2.5 Cr -37.5%QoQ

What they filed

Q1 FY27: revenue up 8.8%, net profit up 32.9% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue18 17 18 18 16 −15%21 +20%11 −42%19 +9%
EBITDA3 3 3 3 2 −21%4 +41%1 −65%3 +29%
Net profit2 2 2 2 2 −29%3 +38%1 −57%2 +33%
How to read this

₹ crore, as filed. The percentage beside a figure is the change against the same quarter a year earlier — never the quarter before, which would make every seasonal business look like it collapses and booms each year.

Segment breakdown

  • Export-Domestic Mix
    73.7% Export Share26.3% Domestic Share
  • Product Mix
    50.2% Injectables Share49.3% Tablets Share40% Nutraceuticals Share

Capital allocation

high confidence
  • Debt Gross ₹6 Cr
    • Repayment Minor repayments of working capital limits, reducing debt from INR8 crores to INR6 crores. ₹2 Cr
    So the current debt levels are INR6 crores as of now.

Guidance & targets

Capacity

  • SPL unit capacity utilization Capacity · first year · High confidence 65-70%
    So the plant is expected to start within this month only. We see the plant starting and ramping up to 65% to 70% capacity in the first year.

    — Srivardhan Khemka

Revenue

  • SPL unit revenue potential Revenue · High confidence INR75-80 crores
    As far as the revenue potential, we have commented on the same in the earlier calls. I will again specify. We will reach around INR75-80 crores of top line from this plant.

    — Srivardhan Khemka

  • Total revenue Revenue · FY26 · High confidence INR75-80 crores
    Yes, correct. This year, we will be doing around INR75-80 crores.

    — Srivardhan Khemka

Margin

  • Base business EBITDA margin Margin · FY26 · High confidence around 15%
    So, the margins would be in the same line as the guidance that has been given. For the base business at the EBITDA level, we should be around 15-odd percent.

    — Pritesh Jain

  • EBITDA margins Margin · FY27 · Medium confidence improve
    Once the product is mature, like 3- 4 years, then the economies of scale kick in and then our EBITDA margins are bound to improve. So what we see is the first batch of products will turn mature in, say, FY '27. So, we see the EBITDA margins to improve in that year.

    — Srivardhan Khemka

Growth

  • CDMO business growth Growth · FY26 · High confidence around 20%
    Yes. As we did last year, we are going to have a growth of around 20%.

    — Ashwani Khemka

Financial Recognition

  • Prague JV income recognition Financial Recognition · Q4 FY26 · High confidence will be shown
    Yes, in December, we will be hearing, and in the fourth quarter, the income will be shown in the balance sheet.

    — Ashwani Khemka

What to watch in Q2 FY26

SPL unit commercial production start

End of August or first week of September (Q2 FY26)
Current Final audit completed, awaiting commercial license.
Target Commercial production started.

Why it matters

This new capacity is a significant growth driver, expected to contribute INR75-80 crores in revenue in its first year.

We are expecting the commercial license in this month itself, and the commercial production will start by the end of this month or the first week of September.

Risks & concerns

  • Geopolitical tensions and supply chain disruptions

    high

    Geopolitical tensions in the Middle East and Red Sea disrupted shipping corridors, leading to increased transit times, higher costs, and container availability issues, impacting execution in Q1 FY26.

    Management acknowledged

  • Currency and commodity price volatility

    medium

    Volatile crude oil prices and currency movements contributed to input cost pressures for pharma manufacturers globally.

    Management acknowledged

  • Slower growth in Franco-African markets

    medium

    These markets are slow-growing due to their branded nature and pending product registrations, with revenue expected to start by next year.

    Management acknowledged

  • Overall market pressure impacting gross margins

    medium

    The overall market is under pressure, leading to a slight decline in gross margins despite revenue growth, though offset by controlled other expenses.

    Management acknowledged

Q&A highlights

7 direct
Pune venture and Prague JV commercialization status Direct
See Pune plant, the validation batches and stability batches have already been done, and the final audit has been completed. We are expecting the commercial license in this month itself, and the commercial production will start by the end of this month or the first week of September. Regarding the Prague JV, we have already started the small order processing has already started. Commercialization is on.

Provides specific timelines for the commencement of commercial operations for two new key ventures.

Asked by Akash Patel

Delay in SPL unit approval and commercial supply Direct
No, no, it is not that we had conducted earlier. Now there's an online system. In the online system, there are a lot of companies that are in the pipeline. We are, in fact, ahead. There are many companies in India who have been in line for the last 8 to 9 months. And once those are processed, they can't do. For us, it has been done out of the way to take it ahead on the CDSCO website, Delhi.

Explains the reasons behind the delay in obtaining approval for the new SPL unit, attributing it to a new online system and revised GMP guidelines.

Asked by Anupal Agarwal

Logistics issues and sequential drop in injectables revenue Direct
So, Anupam, actually, see the logistics aspect, it impacts certain ports. What we experienced when shipping products to Latin America was a lack of container availability. And this might have happened due to the ship shortage -- the vessel shortage that is heading in that direction. Secondly, we feel that there is some kind of choke that the Chinese carriers also create. And in the Middle East area, where we ship our product, the Iranian aspect has affected the movement of the vessels. So all in all, logistics has had an impact on our operations in terms of the shipping of the final product. ... Sir, no particular reason. As you know, the total size of the company's revenue is not that large. It is just order lumpiness. This quarter, it has dropped. The next quarter, it will pick up. It's nothing to do specifically with the business, per se.

Details the external logistical challenges impacting exports and clarifies that the sequential revenue drop in injectables is due to order lumpiness, not a fundamental business issue.

Asked by Anupal Agarwal

Reason for dip in other expenses Direct
Yes. So there's a drop, as you said. The primary reason for those is, one is the cost optimization. And secondly, we had a very fewer audits in the current quarter compared to the previous quarter.

Provides specific reasons for the reduction in other expenses, indicating cost management efforts and lower operational activity.

Asked by Anupal Agarwal

Nutraceuticals revenue trend and future performance Direct
We definitely see this picking up. Due to the geopolitical tensions, the first preference is always given to medicines. So, we are active in many war zones. So, that impacts our nutraceutical revenue. However, we see it will recover and grow from here on.

Addresses the declining trend in the nutraceuticals segment, linking it to geopolitical factors and projecting a recovery.

Asked by Tanmay Jhaveri

Increase in finance cost and current debt levels Direct
So the current debt levels are INR6 crores as of now. ... Yes, there are minor repayments because those are working capital limits. So those won't be steady as we go further in the -- this one.

Clarifies the company's current debt position and explains the nature of debt fluctuations due to working capital limits.

Asked by Maheshwar Falake

Gross margin reduction Direct
See, in recent times, the overall market has been under pressure due to sales. However, we managed to grow our revenue in spite of these pressures. Due to this, we had to face a little decline in the gross margins. However, we made up the gap by controlling our other expenses. So all in all, we stood at a stable level.

Explains the slight decline in gross margins as a trade-off for revenue growth in a challenging market, mitigated by expense control.

Asked by Maheshwar Falake

3 min read 7 chapters

Detailed narrative

Q1 FY26 Performance Overview

Sanjivani Parenteral Limited reported a steady Q1 FY26 performance with revenue growing 8.9% year-on-year to INR17.9 crores. EBITDA increased by 10.8% year-on-year to INR2.7 crores, resulting in an EBITDA margin of 15%, an improvement from 14.7% in the same period last year. However, Profit After Tax remained flat at INR1.7 crores, primarily due to higher depreciation and interest expenses during the quarter. The growth was driven by revenues from newer products and volume expansion in existing markets.

Macroeconomic Headwinds and Supply Chain Challenges

The quarter unfolded against a volatile global environment, marked by geopolitical tensions in the Middle East that disrupted major shipping corridors like the Red Sea, leading to increased transit times and costs. Global container logistics also faced strain with tight container availability and congestion at transshipment hubs, causing consignment delays. Despite these challenges, management noted that underlying demand remains intact and the logistical situation is already showing signs of easing, with expectations for normalization progressively over the year.

New Ventures Update (Pune & Prague)

The SPL Infusion Private Limited (Pune plant), in which Sanjivani holds 60% equity, has completed validation batches and final audits. Commercial license is expected this month, with production commencing by the end of August or first week of September. This plant is projected to ramp up to 65-70% capacity in its first year, aiming for INR75-80 crores in revenue. The Alevia Healthcare (Prague JV), a nutraceutical venture in Europe where Sanjivani holds 45% equity, has started small order processing, and its income is expected to be recognized in Q4 FY26.

Business Verticals and Product Mix

Sanjivani's business is categorized into three verticals: the base business (formulation, sales, exports), SPL Infusion (IV products), and Alevia Healthcare (nutraceuticals). The export-domestic revenue mix for Q1 FY26 was 73.7% to 26.3%. The product mix comprised 50.2% injectables, 49.3% tablets, and 0.4% nutraceuticals. The CDMO business, which is a small portion of the Indian market, is targeted to achieve around 20% growth this year.

Financial Performance Details (Margins, Depreciation, Debt)

While the overall market was under pressure, leading to a slight decline in gross margins, the company managed to grow revenue and offset this by controlling other expenses. Other expenses decreased sequentially from INR4 crores to INR2.5 crores due to cost optimization and fewer audits. Depreciation increased by 13% year-on-year, reflecting recent capital expenditure. The company's debt levels reduced from INR8 crores last quarter to INR6 crores this quarter, primarily due to minor repayments of working capital limits.

Growth Strategy and Product Pipeline

The company continues to focus on life-saving drugs and exports to over 25 countries. It added around eight new products to its portfolio across Q1 and Q2. Management anticipates EBITDA margins to improve in FY27 as these new products mature and economies of scale are achieved. Latin America and MENA regions are significant contributors, with LATAM expected to be a key growth driver for the company in the near term.

Shareholder Value and Outlook

In Q4 FY25, Sanjivani declared a dividend for the first time, reflecting improved financial performance and commitment to rewarding shareholders. For FY26, the company targets total revenue of INR75-80 crores and aims to maintain base business EBITDA margins around 15%. Management remains confident in delivering stronger performance for the rest of FY26, supported by a diversified market presence, product portfolio, and planned new introductions.

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