Sanjiv.Parant. — Q2 FY26 earnings call

Call held 19 Nov 2025

Management summary

Sanjivani Paranteral Limited reported a challenging Q2 FY26 with significant revenue and profit declines, primarily due to external disruptions in key export markets like Nepal and Latin America, leading to held-back shipments and tighter regulatory scrutiny. Despite the headwinds, the company expressed optimism for H2 FY26, anticipating contributions from its new SPL Infusion plant and the Alevia Healthcare venture, alongside a recovery in the base business.

Highlights

  • Revenue for Q2 FY26 stood at INR 15.5 crores, marking a 14.5% decline year-on-year.

  • EBITDA for the quarter was INR 2.4 crores, a 25.6% decrease YoY, with EBITDA margin at 15.5% (down from 17.9% in Q2 FY25).

  • Profit After Tax (PAT) was INR 1.6 crores, declining 28.5% YoY, reflecting the EBITDA contraction.

  • Injectable revenues grew 2.4% YoY to INR 9.3 crores, while Oral revenues declined 35.4% to INR 4.9 crores.

  • Exports constituted 81.6% of the total revenue, with core markets (CIS, Middle East, Africa, Latin America) contributing INR 12.6 crores.

  • The new SPL Infusion plant has started commercial batches and is expected to book revenue in Q3 FY26.

  • The Alevia Healthcare (Prague joint venture) is projected to contribute INR 1-1.5 crores to the company's bottom line for FY26 and INR 3-3.5 crores for FY27.

Concerns

  • External disruptions in key export markets

Key financials

  1. Revenue ₹15.5 Cr -14.5%YoY
  2. EBITDA ₹2.4 Cr -25.6%YoY
  3. EBITDA Margin 15.5%
  4. PAT ₹1.6 Cr -28.5%YoY

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

  • Injectable Revenues
    ₹9.3 Cr Revenue0.024 YoY Growth
  • Oral Revenues
    ₹4.9 Cr Revenue-0.354 YoY Growth
  • Nutraceutical Revenue
    ₹1.2 Cr Revenue
  • Exports
    81.6% Share of Total Revenue
  • Core Markets (CIS, Middle East, Africa, Latin America)
    ₹12.6 Cr Revenue81.6% Share of Total Revenue

Capital allocation

high confidence
  • Capex Capex disclosed
    During the H1, we did a capex of INR1.04 crores.
  • Debt Net ₹6.7 Cr
    the net debt position as of September was at INR6.7 crores.

Guidance & targets

Sales Growth

  • Base business sales growth Sales Growth · going forward (from last year's) · High confidence 10% minimum
    No, no, we will be doing -- we have told you 10% we will be there because this quarter, we took a little dip here. And going forward, if you see the sales growth, and it will be 10% from the last year's, minimum.

    — Ashwani Khemka

  • Base business growth Sales Growth · next year · High confidence 15-20%
    Okay. And sir, next year, base business can grow 15%, 20%. So, this year, it is impacted, so you are planning to grow around maybe 6%, 7% and then some revenue from the Pune plant. But next year, sir, the base business itself can grow 15%, 20% in your view? Yes, yes, yes.

    — Ashwani Khemka

Revenue

  • Pune plant full year revenue potential Revenue · full year operation · High confidence INR 90 crores to INR 110 crores
    The full year operation, we can INR90 crores to INR110 crores, we can do.

    — Ashwani Khemka

  • Pune plant quarterly revenue Revenue · Q2 FY27 · High confidence INR 20 crores to INR 25 crores
    Okay. Understood. So Q2 FY '27, we are looking like a INR20 crores to INR25 crores revenue -- quarterly revenue from this plant? Yes.

    — Ashwani Khemka

  • Pune plant full year contribution Revenue · FY27 · High confidence INR 70 crores
    Okay. So next year, sir, then what we are saying is that maybe INR70 crores can be contribution from this plant alone in the full year FY '27, sir? Yes, yes.

    — Ashwani Khemka

  • Total revenue Revenue · next year · High confidence INR 150 crores
    Okay. So, we are looking like INR150-odd crores revenue next year, sir? Exactly. Correct.

    — Ashwani Khemka

  • SPL Infusion revenue booking Revenue · Q3 FY26 · High confidence start booking revenue
    On SPL Infusion Private Limited venture, all the regulatory approvals are in place. We have started the commercial batches, and we should start booking revenue in Q3 FY '26.

    — Srivardhan Khemka

Profitability

  • Pune plant margin profile Profitability · Medium confidence Similar, a little better
    Yes. It may improve. We are on that path.

    — Ashwani Khemka

  • Alevia Healthcare (Prague JV) bottom line contribution (company's share) Profitability · FY26 · High confidence INR 1 crores to INR 1.5 crores
    And from a only bottom-line perspective, we expect around INR1 crores to INR1.5 crores of contribution to our bottom line. That is only our share of the venture for FY '26.

    — Srivardhan Khemka

  • Alevia Healthcare (Prague JV) bottom line contribution (company's share) Profitability · FY27 · High confidence INR 3 crores to INR 3.5 crores
    It's honestly too early to say that, but a very healthy growth, definitely. A minimum of growth 100% from this number. So, minimum of INR3 crores to INR3.5 crores we should achieve in FY '27, it will go way up north as well.

    — Srivardhan Khemka

Capacity

  • Pune plant optimal capacity utilization / INR 100 crores revenue Capacity · Q2 FY27 · High confidence Q2 FY '27
    By say -- in the second quarter of FY '27.

    — Ashwani Khemka

What to watch in Q3 FY26

SPL Infusion plant revenue booking

Q3 FY26
Current Commercial batches started, regulatory approvals in place
Target Booking revenue

Why it matters

This new venture is expected to contribute to the company's top line from the current quarter.

On SPL Infusion Private Limited venture, all the regulatory approvals are in place. We have started the commercial batches, and we should start booking revenue in Q3 FY '26.

Risks & concerns

  • External disruptions in key export markets

    high

    Local unrest in Nepal (INR 1 crore orders held back), product issues against unrelated Indian exporters in LatAm leading to tighter FDA scrutiny and slowing dispatches, and delays in product approvals in MENA markets.

    Management acknowledged

  • Heightened regulatory scrutiny and compliance requirements

    medium

    Latin American markets have increased scrutiny on Indian manufacturers, and revised Schedule M guidelines in India are tightening regulations, impacting many companies.

    Management acknowledged

  • Longer sales turnaround cycle for Alevia Healthcare

    medium

    The process of completing orders through the Prague plant is time-consuming, potentially delaying revenue recognition from the nutraceutical venture.

    Management acknowledged

  • Delays in Franco African market registrations

    medium

    Unrest in Cameroon and Mali led to temporary shutdowns of regulatory bodies, delaying sample receipt and expected registrations by approximately 6 months.

    Management acknowledged

  • Delays in NSE listing

    medium

    The company does not yet qualify on all parameters for NSE listing, which will prolong the process amidst many other companies awaiting scrutiny.

    Management acknowledged

Q&A highlights

3 direct, 1 evasive
Quantification of revenue loss due to external disruptions Partial
See, it's difficult to quantify the numbers exactly. But the 2 markets that regarding Nepal, I mentioned that orders worth INR1 crores were held back due to the local unrest. And in South America, we have actually held back some shipments because there were some scrutinise on the distributors who are present in those markets.

Analyst sought specific numbers for impact of external factors, but management provided qualitative details and one specific INR amount for Nepal.

Asked by Kush Tandon

Quantification of order book for the new Pune plant Evasive
Quantify -- I cannot comment right now on this, and we will be disclosing that.

Management declined to provide a specific number for the new plant's order book, indicating it's not ready for public disclosure yet.

Asked by Kush Tandon

Impact of antibiotic resistance on business Direct
No, our contribution to the antibiotic segment is hardly 7% to 8% only. So, it doesn't much bother and affect to our company. But the companies who are having more than 30%, 35% dependence on antibiotic will have effect on.

Management clarified that despite a general decline in the antibiotic market, their low exposure (7-8%) minimizes the impact on their business.

Asked by Neeraj

Details on Latin America regulatory challenges and mitigation strategies Direct
LatAm is a very stringent market, and it is governed by the Western Union and the U.S. regulators. And these markets are very stringent in quality parameters, packaging and stability of the products. We are in this market for the last more than 15 years. And as I told earlier also that we have been inspected more than 3.times. So, we stand a good chance and we understand our people, our team, they understand the regulatory requirement of those countries and those markets and the government MOH, Ministry of Health, questionnaire, they are very well versed with.

Management provided detailed insights into the regulatory environment in Latin America, the reasons for current issues, and their long-standing experience and compliance measures to mitigate risks.

Asked by Karan Sharma

Progress and timeline for NSE listing Partial
So, there are a few parameters we are working on, which we do not qualify as on the date. But for the major of the parameters, we are on the line. So that's also the reason where it will take a bit long.

Management indicated that while the application is in, some parameters are not yet met, suggesting a longer timeline for the NSE listing than previously anticipated.

Asked by Akash Bhalla

Reason for stabilized employee expenses and impact of modernization/AI Direct
Yes. See, you have seen the employee costs getting down. We have done certain modernization in our facilities. And with the help of AI, we have quantified and work everything is the modernization is going on in a very high speed in the plant. So, this thing you will be seeing in the future also, and we are very cost-effective company to challenge the -- face the challenges in the market.

Management attributed the stabilization and reduction in employee costs to modernization efforts and the adoption of AI, highlighting a strategic move towards cost-effectiveness.

Asked by Akash Bhalla

2 min read 6 chapters

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 disruptions 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.

This is an AI-generated summary of a publicly available earnings call transcript.
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