Detailed Narrative
Q2 FY26 Performance Overview and External Headwinds
Sanjivani Paranteral Limited reported a revenue of INR 15.5 crores in Q2 FY26, a 14.5% year-on-year decline. This was largely attributed to external disruption🌐s in key export markets, including local unrest in Nepal which held back INR 1 crore worth of orders, and product issues in Latin America leading to tighter FDA scrutiny and delayed dispatches. EBITDA for the quarter fell 25.6% YoY to INR 2.4 crores, with the margin contracting to 15.5% from 17.9% in Q2 FY25, and PAT declined 28.5% to INR 1.6 crores.
Segmental and Market Performance
In terms of segment performance, injectable revenues showed a modest growth of 2.4% YoY, reaching INR 9.3 crores. However, oral revenues experienced a significant decline of 35.4% to INR 4.9 crores. Nutraceutical revenue contributed INR 1.2 crores. Exports remained a dominant part of the business, accounting for 81.6% of total revenue, with core markets in CIS, Middle East, Africa, and Latin America contributing INR 12.6 crores.
New Ventures: SPL Infusion and Alevia Healthcare
The company's new SPL Infusion venture, focused on IV products, has secured all regulatory approvals and commenced commercial batches, with revenue booking expected to begin in Q3 FY26. The Alevia Healthcare (Prague joint venture), a nutraceutical business in Europe, has started booking small orders, though the processing cycle is longer. Management anticipates a bottom-line contribution of INR 1-1.5 crores from Alevia Healthcare in FY26, projected to grow to INR 3-3.5 crores in FY27.
Outlook and Growth Drivers
Management expressed optimism for FY26, expecting all three business verticals to contribute. The new Pune plant is projected to achieve INR 90-110 crores in full-year revenue upon full operation, reaching optimal capacity utilization and INR 100 crores revenue by Q2 FY27. The base business is targeted for a minimum 10% sales growth going forward⏳, with expectations of 15-20% growth next year, contributing to a total revenue target of INR 150 crores for FY27.
Regulatory Environment and Risk Mitigation
The Latin American market faces heightened regulatory scrutiny, with many Indian manufacturers undergoing inspections. Sanjivani, with over 15 years in the market and multiple plant inspections, believes its strong compliance and quality track record will position it favorably. The company is mitigating geographic and product-mix risks by diversifying its presence across multiple continents, offering various dosage forms beyond injectables, and reducing dependence on antibiotics (which constitute only 7-8% of its portfolio).
Operational Efficiency and Corporate Initiatives
The company reported H1 capex of INR 1.04 crores and a net debt of INR 6.7 crores as of September 30, 2025. Employee costs have seen a reduction due to modernization efforts and the adoption of AI in facilities, contributing to a more cost-effective operation. While the application for NSE listing is in progress, management noted that some parameters are still being worked on, indicating a longer timeline for the listing.