Anlon Healthcare Limited — Q3 FY26 earnings call

Call held 19 Feb 2026

Management summary

Anlon Healthcare Limited reported strong Q3 and 9M FY26 results, with significant revenue and profit growth driven by API and intermediate volumes. The company is actively pursuing capacity expansion through greenfield projects and strategic acquisitions (Apiqo Organic, Bizotic Life Science) to support ambitious revenue targets and product diversification. Management is focused on improving working capital efficiency and maintaining healthy EBITDA margins.

Highlights

  • Total Income for Q3 FY26 grew significantly by 281.45% YoY to ₹35.78 crore, driven by higher API and intermediate volumes.

  • EBITDA margin for Q3 FY26 was strong at 35.06%, contributing to a PAT of ₹5.15 crore compared to a loss in the prior year period.

  • 9M FY26 saw robust growth with Total Income up 69.7% YoY to ₹121.32 crore and PAT reaching ₹18.02 crore.

  • Management confirmed a sustainable consolidated EBITDA margin of 30-33% and targets a 30% Revenue CAGR over the next three years.

  • Working capital days are projected to reduce from 290 days to 150-160 days by FY27, and the company expects positive operating cash flow in FY27.

Concerns

  • Q3 FY26 revenue was lower than Q2 FY26 due to seasonal overseas customer holidays and held shipments in December.

  • Working capital receivable days are currently high at approximately 290 days, though management has a plan to reduce them.

Key financials

2 periods

Q3 FY26

  • Total Income
    ₹35.78 Cr
    YoY +281.4%
  • EBITDA
    ₹12.54 Cr
  • EBITDA Margin
    35.1%
  • PAT
    ₹5.15 Cr

9M FY26

  • Total Income
    ₹121.32 Cr
    YoY +69.7%
  • EBITDA
    ₹32.56 Cr
  • EBITDA Margin
    26.8%
  • PAT
    ₹18.02 Cr

What they filed

Q1 FY27: revenue up 162.9%, net profit up 133.2% against the same quarter last year.

₹ Cr · quarterly
Line itemQ2 FY25Q3 FY25Q4 FY25Q1 FY26Q2 FY26Q3 FY26Q4 FY26Q1 FY27
Revenue24 9 49 33 52 +116%36 +280%51 +4%88 +163%
EBITDA8 1 17 6 14 +83%12 +2017%15 −11%16 +150%
Net profit3 -2 17 4 9 +260%5 +307%11 −34%8 +133%
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.

Order book

high confidence

Total value

₹312.5 Cr

as of 2025-12-31 quantified

Execution

for next year

Composition

Mix 2 entities
  • Anlon (existing plant) 59.2%
  • Apiqo 40.8%

Share of order book by entity

Order book for next year (FY27) is strong and capacity is fully booked for the existing Anlon plant and Apiqo.

Source: Q&A

Capital allocation

high confidence
  • Capex ₹100 Cr 40-50 cr from routine cash flow, 50-60 cr from bank loan
    • Greenfield organic expansion ₹100 Cr
    So we are expecting at least, INR 40-50 cr from our routine cash flow. And we are planning for INR 100 Crs, INR 50 to 60 cr from the bank loan.
  • Debt Debt disclosed
    So in FY 27, when you are going for this 100 odd crore CapEx, etc some sort of debt also will be required. Working capital also will be, you know, a part of that short-term debt. So what short-term plus long-term, debt to equity or total debt, whichever way I mean, you are comfortable. ... I think, that would be somewhere around 0.5 to 0.55.
  • M&A Apiqo Organic Acquisition · Closed · Consideration ₹[object Object] (undisclosed)

    strengthened backward integration and added substantial capacity

    The acquisition of Apiqo Organic has strengthened backward integration and added substantial capacity
  • M&A Bizotic Life Science Acquisition · Pending regulatory · Consideration ₹[object Object] (undisclosed)

    accelerate expansion and regulatory readiness

    while the proposed acquisition of Bizotic Life Science will further accelerate expansion and regulatory readiness.
  • M&A Apiqo and Bizotic Acquisition · Announced · Consideration ₹[object Object] (stock)

    to make them 100% subsidiaries to expedite merger process

    Will make them 100% subsidiaries in next financial year via share swap, not cash transaction.

    So right now we are planning that, maybe in next financial year, we'll make the Apico as a 100 percent subsidiary of Anlon. For the same, for Bizotic also, we'll make the 100 percent subsidiary of Anlon. ... See, for that, what we are planning, maybe we are going for the option of, share swaping to existing shareholder of that, both the entities, to make the 100 percent subsidiary.
  • Liquidity Liquidity disclosed Company expects to generate free cash flow during the next year, with at least INR 40-50 crore from routine cash flow.
    We, we are expecting that we will generate the free cash flow during the next year. ... So we are expecting at least, INR 40-50 cr from our routine cash flow.

Guidance & targets

Revenue Growth

  • Revenue CAGR Revenue Growth · next 3 years · High confidence approx 30 percent
    we remain confident in our ability to deliver approx 30 percent Revenue CAGR over the next 3 years

    — Punit Kumar Rasadia

EBITDA Margin

  • EBITDA Margin (Anlon - Domestic) EBITDA Margin · next 2, 3 years · High confidence minimum 35 percent
    generally for the domestic market, we are working at least with the minimum 35 percent EBITDA

    — Punit Kumar Rasadia

  • EBITDA Margin (Anlon - Regulated Market) EBITDA Margin · next 2, 3 years · High confidence at least 50 percent
    for the reg market, we are planning to, means, trying to keep at least 50 percent of EBITDA.

    — Punit Kumar Rasadia

  • EBITDA Margin (Apiqo) EBITDA Margin · ongoing · High confidence around 30 percent
    But in case of Apiqo, it is slightly lower, somewhere around 30 percent

    — Punit Kumar Rasadia

  • EBITDA Margin (Consolidated) EBITDA Margin · continuously · High confidence 30 to 33 percent
    So, you can say, like, 30 to 33 percent EBITDA will continuously maintain that.

    — Punit Kumar Rasadia

Revenue

  • Consolidated Revenue Revenue · FY27 · High confidence 370-380 crore
    Yeah, those number are intact, and that was the actual, very much conservative number. So we are believing that, result would be much better than what, 370 to 380 Crores.

    — Punit Kumar Rasadia

  • Consolidated Revenue Revenue · FY26 · High confidence 190 to 200 Cr
    So for FY 26, if my understanding is correct, you said, totally INR 190 to 200 Crs.

    — Punit Kumar Rasadia

  • Consolidated Revenue Revenue · FY28 · High confidence 650 to 700 CR
    So by FY 28, we can plan to reach 650 to 700 CR.

    — Punit Kumar Rasadia

Working Capital

  • Working Capital Days Working Capital · FY26 end · High confidence 180 to 185 days

    From 290 days today

    our working capital days, should be somewhere around 180 to 185 days from whatever currently 290 days.

    — Punit Kumar Rasadia

  • Working Capital Days Working Capital · next financial year (FY27) · High confidence 150 to 160 days

    From 180-185 days today

    But next year it would be further improved. So more or less, as per the standard, it would be somewhere between 150 to 160 days.

    — Punit Kumar Rasadia

Capacity

  • Combined Installed Capacity Capacity · future · High confidence 400 to 600 metric ton per annum
    our combined installed capacity is expected to reach around 400 to 600 metric ton per annum

    — Punit Kumar Rasadia

  • Greenfield Expansion Capacity Capacity · future · High confidence 800 to 1000 metric ton
    So right now, roughly, we are planning that around, 800 to 1000 metric ton will go for the Greenfield, new expansion.

    — Punit Kumar Rasadia

  • Anlon Organic Expansion Capacity Capacity · future · High confidence 1200 to 1300 metric ton per annum
    whatever the organic expansion we are planning for the Anlon, that would be around, 1200 to 1300 metric ton per annum. So that would be almost 3 times higher than what we are right now having.

    — Punit Kumar Rasadia

  • Apiqo Organic Expansion Capacity Capacity · future · High confidence 500 to 600 metric ton per annum
    And in Apiqo Organics, the organic expansion, what we are planning, that would be the more or less same size, so that would be around 500 to 600 metric ton per annum.

    — Punit Kumar Rasadia

Product Commercialization

  • DMF Commercialization Product Commercialization · next financial year (FY27) · High confidence at least over 6 or 7 key molecules
    So we are, expecting in next financial year, out of 21, at least over 6 or 7, the key molecule will be commercialized.

    — Punit Kumar Rasadia

Greenfield Expansion

  • Completion Timeline Greenfield Expansion · by Feb 2027 · High confidence within 1 year

    From 18 to 20 months (industry standard) today

    See, we are trying our best to complete it within 1 year. Generally, in as per the, industry standard, people are expecting around 18 to 20 months, but we have already most of the regulatory, approvals for that and, statutory approvals for that. So we have to just construct the production block, remaining storage facility, QC, admin, QA, utility, we already have with us. So that will, save over time. So, we are expecting within 1 year we can operational the new greenfield expansion.

    — Punit Kumar Rasadia

CDMO

  • Gestation Period (Molecule to Commercial Revenue) CDMO · general · High confidence Minimum 3 to 4 years
    Minimum 3 to 4 years.

    — Punit Kumar Rasadia

Product Contribution

  • Loxoprofen Revenue Contribution Product Contribution · FY27 · High confidence 25 to 30 percent
    Loxoprofen commercial quantities, what we are expecting for FY 27, that would be, similar to 25 to 30 percent.

    — Punit Kumar Rasadia

Product Pipeline

  • New API Additions Product Pipeline · next financial year (FY27) · High confidence 6 or 7 new APIs
    So we are planning to add 6 or 7 new APIs in next financial year.

    — Punit Kumar Rasadia

Debt

  • Debt to Equity Ratio Debt · future · High confidence 0.5 to 0.55
    I think, that would be somewhere around 0.5 to 0.55.

    — Punit Kumar Rasadia

What to watch in Q4 FY26

Working Capital Days Reduction

by FY26 end (March 31, 2026)
Current ~290 days
Target 180-185 days

Why it matters

Improvement in working capital directly impacts cash flow and financial efficiency.

our working capital days, should be somewhere around 180 to 185 days from whatever currently 290 days.

Risks & concerns

  • High Working Capital Receivable Days

    medium

    Current working capital days are approximately 290 days, which is high, but management has a plan to reduce it significantly.

    Analyst acknowledged

  • Capacity Constraints in Existing Plant

    low

    Existing Anlon facility is almost 90% utilized, which is being addressed through acquisitions and planned greenfield expansion.

    Management acknowledged

  • Seasonal Revenue Fluctuations

    low

    Q3 revenue was lower than Q2 due to overseas customer holidays (Christmas) and held shipments, which is a typical industry pattern.

    Management acknowledged

Q&A highlights

8 direct
Sustainability of 35% EBITDA Margin Direct
Yeah, so that is sustainable. As per our, that even last discussion in last call also, we clearly mentioned that generally for the domestic market, we are working at least with the minimum 35 percent EBITDA, and for the reg market, we are planning to, means, trying to keep at least 50 percent of EBITDA.

Confirms management's confidence in maintaining strong operating margins for the core business.

Asked by Vaibhav Mishra

FY27 Revenue Guidance (370-380 Cr) Direct
Yeah, those number are intact, and that was the actual, very much conservative number. So we are believing that, result would be much better than what, 370 to 380 Crores.

Reaffirms and provides confidence in the ambitious revenue target for the next fiscal year, suggesting potential upside.

Asked by Vaibhav Mishra

CDMO Molecules Status Direct
So out of that, 1 molecule validation quantity is already dispatched within this month. And, regarding 2 molecules, it will be in, somewhere around, Q1 of next financial year. So around June, July, we'll get the validation for that.

Provides a clear timeline for the progression of CDMO pipeline molecules, indicating near-term commercialization potential.

Asked by Vaibhav Mishra

Working Capital Days Reduction Target Direct
our working capital days, should be somewhere around 180 to 185 days from whatever currently 290 days. ... But next year it would be further improved. So more or less, as per the standard, it would be somewhere between 150 to 160 days.

Highlights a key operational focus area and provides specific, aggressive targets for improving cash conversion cycle.

Asked by Paras Chheda

Funding for 100% Subsidiary Acquisitions Direct
See, for that, what we are planning, maybe we are going for the option of, share swaping to existing shareholder of that, both the entities, to make the 100 percent subsidiary. ... Yes. So there will, there will be no cash crunch over there.

Clarifies that the acquisitions will not strain the company's cash position, alleviating potential investor concerns about funding inorganic growth.

Asked by Rudraksh Raheja

Q3 Revenue vs Q2 (Seasonal Impact) Direct
See, generally what happen, in our industry, it's so it can be compared with the H1, H2, because in quarter to quarter, last quarter is almost, vacation for the overseas customers due to Christmas and all those things. So most of the shipment is getting hold for the December.

Explains the sequential revenue dip as a seasonal factor, providing context and suggesting a more appropriate comparison metric (H1 vs H2).

Asked by Paras Chheda

Greenfield Expansion Completion Timeline Direct
See, we are trying our best to complete it within 1 year. Generally, in as per the, industry standard, people are expecting around 18 to 20 months, but we have already most of the regulatory, approvals for that and, statutory approvals for that. So we have to just construct the production block, remaining storage facility, QC, admin, QA, utility, we already have with us. So that will, save over time. So, we are expecting within 1 year we can operational the new greenfield expansion.

Indicates an accelerated timeline for capacity addition, which is crucial for meeting future demand and revenue targets.

Asked by Garvita Jain

Bizotic Portfolio and Strategy Direct
No, Bizotic is more or less similar or in line with the Anlon, that they are the pharma API and intermediate facility both. So, what we are planning is the domestic customer, where we can target or regulatory requirement is not there, that we'll shift to Bizotic and we'll start the selling the product from the Bizotic due to capacity constraint in Anlon.

Clarifies the strategic role of Bizotic in addressing Anlon's capacity constraints and expanding domestic market reach for similar products.

Asked by Rudraksh Raheja

3 min read 6 chapters

Detailed narrative

Strong Q3 and 9M FY26 Financial Performance

Anlon Healthcare Limited delivered robust financial results for Q3 FY26, with Total Income surging by 281.45% YoY to ₹35.78 crore, up from ₹9.38 crore in Q3 FY25. This growth was primarily fueled by higher API and intermediate volumes. The company achieved a PAT of ₹5.15 crore in Q3 FY26, a significant turnaround from a loss in the corresponding period last year. For the nine months ended FY26, Total Income increased by 69.7% YoY to ₹121.32 crore, and PAT grew to ₹18.02 crore, demonstrating strong operational scale-up.

Sustainable Margins and Future Outlook

The EBITDA margin for Q3 FY26 stood at 35.06%. Management expressed confidence in maintaining a sustainable EBITDA margin of 35% for its domestic operations and targeting at least 50% for regulated markets over the next 2-3 years. Factoring in the slightly lower margins of the acquired Apiqo Organic, the consolidated EBITDA margin is projected to remain consistently between 30-33%. The company aims for approximately 30% Revenue CAGR over the next three years, with FY27 revenue guidance of ₹370-380 crore, which is considered conservative.

Strategic Acquisitions and Capacity Expansion

The period marks a pivotal phase in Anlon's growth journey, driven by strategic inorganic and organic initiatives. The acquisition of Apiqo Organic has been completed, enhancing backward integration and adding substantial capacity. The proposed acquisition of Bizotic Life Science is expected to be finalized within three months, further accelerating expansion and regulatory readiness. Both Apiqo and Bizotic are planned to become 100% subsidiaries in FY27 via a share swap, avoiding cash outflow. Combined installed capacity is expected to reach 400-600 metric tons per annum, with significant greenfield expansion plans to add 800-1000 metric tons.

Working Capital Improvement and Funding Strategy

Currently, the company faces high working capital receivable days, approximately 290 days. Management is actively working to reduce this to 180-185 days by FY26 end and further to 150-160 days by FY27 through revised customer payment terms. Anlon anticipates generating positive operating cash flow in FY27, with at least ₹40-50 crore from routine cash flow. A planned greenfield CapEx of ₹100-120 crore will be funded through internal accruals (₹40-50 crore) and bank loans (₹50-60 crore), targeting a conservative debt-to-equity ratio of 0.5-0.55.

Product Pipeline and Diversification Efforts

Anlon has a robust product pipeline with 21 DMF filings, expecting 6-7 key molecules to be commercialized in FY27. While loxoprofen and its intermediates (NSAIDs) currently contribute 25-30% of FY27 revenue, the company is actively diversifying its therapeutic portfolio. New products are being developed for cardiac, arthritis, uncontrolled urination, chronic kidney disease, and nutraceuticals, aiming for a 10-15% contribution from these segments to de-risk the current product range.

Greenfield Expansion Timeline and AI Vision

The company is targeting an aggressive timeline for its greenfield expansion, aiming for completion within 1 year, significantly faster than the industry standard of 18-20 months, due to existing regulatory approvals. Execution is planned to commence from April 1, 2026, with completion by March 31, 2027. Additionally, management shared a long-term vision to integrate AI into healthcare, focusing on distribution, patient engagement, and drug discovery, restarting a project initially conceived in 2014-15.

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