Amanta Healthcare Q1 FY27 earnings call

Amanta Healthcare reported a resilient Q1 FY27 with revenue of INR69 crores, marking a 5% year-on-year growth. The company maintained a healthy EBITDA margin of approximately 22%, with EBITDA at INR15 crores, despite facing cost pressures from polymer price volatility and absorbing overheads related to ongoing expansion projects. The management emphasized disciplined execution and laying the foundation for future growth.

The SteriPort platform, currently contributing around 44% of the company's revenue, is undergoing a significant capacity expansion from 6.6 crore to 12 crore bottles per year. While originally targeted for Q1, commissioning was delayed to Q2 FY27 due to civil construction. FDA approval for SteriPort Line 3 has been received, with validation activities underway, and commercial production is expected by the last week of August 2026. This new line is projected to generate an annualized peak revenue of INR120 crores.

The Small Volume Parenterals (SVP) business contributed approximately 20% of FY26 revenue. The new SVP facility is expected to commence operations in Q4 FY27 (March 2027), with the Factory Acceptance Test (FAT) scheduled for November in the USA. This facility will primarily focus on export-centric products such as inhalation solutions, ophthalmics, and preservative-free unit doses for advanced markets, with 60-70% of SVP revenue expected from these regions post-expansion.

Amanta is investing in a dedicated F&D team of five scientists, actively working on a pipeline of 20 products. The first inhalation product is anticipated to be commercialized by September 15, 2026, with the entire pipeline project expected to be completed within 18 months. These new products, particularly inhalation, ophthalmics, and diluents for advanced markets, are identified as key growth drivers for FY27-FY29, aiming to provide additional EBITDA.

Total capex for SteriPort Line 3 is INR90 crores, with INR80 crores already spent, while the SVP facility has a capex of INR30 crores, with INR7 crores spent so far. The company also commissioned a 10.8 MW captive solar power project in June 2026, which is expected to save INR75 lakhs per month and contribute to a 4-5% expansion in console EBITDA margin. Total annual depreciation is projected to increase by INR6 crores compared to FY26 due to these new assets.

The company's debt-to-equity ratio stood at 1.06 in FY26. Management expects to reduce debt by INR30-35 crores annually, with interest expenses guided at INR21 crores for FY27 and INR18-19 crores for FY28. Working capital days were 141 in FY26, influenced by a 15-day quarantine period for products, which can extend to 25 days for exports requiring pre-shipment inspections.

Amanta's long-term vision is to remain focused on sterile dosage forms. The company plans to explore other drug delivery mechanisms and packaging materials, such as glass, beyond its current plastic-only focus, with more clarity expected in the next six months (by December/January). This strategic shift aims to broaden its product universe and leverage its strong presence in the hospital market for high-value products.