Beta Drugs Ltd

Beta Drugs Limited reported a strong financial performance for FY25, with consolidated revenue growing 22.5% year-on-year to ₹362.35 crores, up from ₹295.71 crores in the previous year. EBITDA increased by 32.25% to ₹81.04 crores, resulting in an EBITDA margin of 22.37%. Excluding the Cosmetology division, the EBITDA margin stood higher at 24.03%. Net profit also saw a significant rise of 25.8%, reaching ₹45.83 crores compared to ₹36.43 crores in FY24.

The Branded segment achieved ₹103 crores in sales, marking a 25% growth with an EBITDA margin of 34-35%. The CDMO business grew 5% to ₹148 crores, maintaining an EBITDA margin of 15-16%. Exports were a standout performer, growing 73% to ₹80 crores, with management targeting a 3x increase in sales over the next 2-3 years. The API segment remained stable at ₹20 crores with a 19-20% EBITDA margin. The Derma (Cosmetology) division, while still incurring an EBITDA loss of ₹3 crores, showed an 80% revenue growth to ₹12.30 crores and is expected to turn profitable by September 2025.

Beta Drugs is actively focusing on expanding its presence in international markets, particularly LATAM and APAC regions, where competition is lower. The company received COFEPRIS and ZaZiBoNa approvals, filed 130 new dossiers, and plans to file over 200 more in the next 4-12 months. Revenue from regulated markets is anticipated to pick up in FY27, specifically by May-June 2027, due to the extensive 18-36 month registration timelines. The company is also pursuing EU GMP approval, with an audit expected in October-December 2025, aiming for European market entry within 2.5 years post-approval.

The company's R&D spend is approximately 2% of its revenue, supporting a team of 10 people in API and formulation development. Beta Drugs successfully launched 5-6 new molecules this year and plans to launch another 6 in the current financial year. Additionally, 2 more New Drug Delivery Systems (NDDS) are slated for launch this fiscal year, with two more in FY27. The long-term pipeline includes 20 new molecules over the next 3-5 years, with a focus on innovative therapies like oral oncology and NIBs.

The Cosmetology division, which was a concern, has shown significant improvement, with its EBITDA loss reducing from ₹4 crores to ₹3 crores in FY25. The division's revenue grew 80% to ₹12.30 crores, and its prescriber base expanded from 1,200 to 2,600. The company has secured in-licensing deals for fillers from a European company, which are expected to be commercialized in the next two months. Management anticipates the Cosmetology division to achieve profitability by September 2025, maintaining a gross margin of 65-70%.

Of the ₹117 crores raised through preferential allotment, approximately ₹11 crores have been utilized for facility upgradations in Adley Formulations and Adley Lab, while the remaining funds are currently held in Fixed Deposits. The company issued bonus shares with a record date of March 26, 2025. The Mainboard migration process, initially targeted for July 2024, is ongoing and expected to be completed between June and August 2025, following various SEBI formalities. The company is also exploring M&A opportunities for branded businesses and plans to invest in a new corporate/R&D building and expand into intermediate manufacturing.